Applied Digital Corp (APLD) stock soared 20.74% in pre-market trading on Thursday, following the release of better-than-expected fourth-quarter financial results and growing optimism about the company's position in the artificial intelligence (AI) market.
The Dallas-based data center operator reported a quarterly adjusted loss of $0.03 per share, significantly outperforming analyst expectations of a $0.15 loss. This represents a substantial improvement from the $0.14 loss per share reported in the same quarter last year. Revenue for the quarter reached $38 million, up 41% year-over-year and slightly above Wall Street estimates of $37.1 million.
Investors were particularly encouraged by Applied Digital's strategic positioning in the rapidly growing AI infrastructure market. The company has secured two 15-year lease agreements with CoreWeave, projected to deliver around $7 billion in revenue over the lease term. This long-term partnership underscores the increasing demand for AI-focused cloud infrastructure solutions, positioning Applied Digital as a key player in the sector. The surge in Applied Digital's stock price aligns with a broader trend of Nvidia-linked shares rallying, as the AI boom continues to drive investor interest in companies providing essential infrastructure for AI and machine learning services.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.