Applied Digital shares are up in Friday’s pre-market session after reporting earnings and accelerating demand for AI data center capacity.
Applied Digital Corp (NASDAQ:APLD) shares are up during Friday’s pre-market session after the company reported earnings and pointed to accelerating demand for AI data center capacity. The stock is catching a bid as AI data center names trade firmer, with tech also leading early index strength.
- Applied Digital stock is moving in positive territory. Why are APLD shares climbing?
Applied Digital Delivers Major Revenue And EPS Beat
Applied Digital this week posted fiscal third-quarter revenue of $126.6 million versus a $76.56 million estimate and delivered adjusted EPS of nine cents versus expectations for a loss of 10 cents.
CEO Wes Cummins said the company is seeing “clear acceleration” in demand for high-performance AI data center capacity, with a 100 MW direct-to-chip liquid-cooled data center now fully operational.
Applied Digital’s third-quarter beat was powered by a 139% year-over-year revenue surge, with management emphasizing “turning power into live AI capacity” as the key customer metric. The balance sheet also remains a focal point, with about $2.1 billion in cash and restricted cash against $2.7 billion of total debt.
AI Data Center Buildout And Hyperscaler Demand Stay In Focus
Construction updates are also in play after Applied Digital confirmed ELN-2 at Polaris Forge 1 is fully operational and said two additional 150 MW facilities continue to advance. Cummins added that hyperscalers”are behaving as aggressively as the company has ever seen, a demand signal traders are mapping to utilization and pricing power.
Analysts Stay Bullish Despite Mixed Price Targets
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $31.38. Recent analyst moves include:
- Citizens: Market Outperform (Maintains Target to $40.00) (April 9)
- B. Riley Securities: Buy (Raises Target to $53.00) (Jan. 9)
- Roth Capital: Buy (Raises Target to $58.00) (Jan. 8)
APLD Shares Edge Higher Friday Morning
APLD Stock Price Activity: Applied Digital shares were up 1.68% at $26.00 during premarket trading on Friday, according to Benzinga Pro data.
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