Applied Digital Surges 16% on AI-Driven Data Center Boom
Applied Digital shares jumped 16% on Friday, extending a stellar year that has seen the stock soar over 340% in 2025. The surge followed a strong Q1 earnings report, fueled by rising demand for AI-focused data centers.
Here’s how the company performed compared to analyst expectations (LSEG):
- Loss per share: $0.07 vs. $0.13 expected
- Revenue: $64.2 million vs. $50 million expected
Quarterly revenue climbed 84% year-over-year, underscoring the company’s accelerating growth amid the AI infrastructure boom.
The company also expanded its $7 billion lease deal with CoreWeave, adding another 150 megawatts of capacity at its Polaris Forge 1 campus in North Dakota. The updated agreement lifts the project’s total expected lease revenue to $11 billion.
“With hyperscalers expected to invest approximately $350 billion into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era,” said CEO Wes Cummins.
Applied Digital is also advancing construction of its second North Dakota campus, Polaris Forge 2, a $3 billion project that will host two 150 MW buildings. The facility is expected to bring 200 MW online by 2026 and reach full capacity in 2027.
Despite the growth, the company reported a net loss of $18.5 million for the quarter, compared to $4.3 million last year. Analysts expect a Q2 loss of $0.15 per share on $76 million in revenue.
