Applied Digital Corporation (NASDAQ: APLD) surged 13.63% during Thursday's intraday trading session, fueled by a blockbuster fiscal second-quarter earnings report and bullish growth prospects in AI infrastructure.

The company reported revenue of $126.6 million, a 250% year-over-year jump, far exceeding analyst estimates of $88 million. Key drivers included strong demand for its AI-focused data center services and a $5 billion hyperscaler lease agreement for its Polaris Forge 2 campus. Adjusted net income turned positive at $100,000, a dramatic improvement from last year's loss.

Investors also cheered strategic moves like the planned spin-off of its GPU Cloud business into ChronoScale, expected to close in early 2026, and advanced talks with another investment-grade hyperscaler for 900 MW of capacity. Analysts at Needham and Lake Street reiterated Buy ratings with price targets up to $45, citing Applied Digital's "first-mover advantage" in energy-efficient data centers and a $1 billion+ net operating income target over five years.