Applied Digital Corp (APLD) stock surged 5.02% in after-hours trading on Monday, following a drop during the regular session that appeared tied to a broader selloff in Nvidia-linked stocks.
The after-hours rally came as investors digested positive commentary on APLD's role in the rapidly growing artificial intelligence (AI) and high-performance computing (HPC) space. Analysts highlighted the company's differentiated strategy of providing infrastructure solutions and cloud services tailored for AI and other intensive computing applications.
Specifically, APLD recently secured a $5 billion perpetual preferred equity financing facility from Macquarie Asset Management. This capital infusion is expected to accelerate the development of the company's North Dakota data center campus, a key component of its growth plans aimed at meeting surging demand for AI training and inference workloads.