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.