Applied Digital tops revenue estimates as AI data center demand surges

What happened

Applied Digital ($APLD) reported fiscal Q2 revenue of $126.6M (ended Nov. 30), well above the ~$88M analyst estimate, helped by strong demand for large-scale AI data center capacity. Shares jumped about 7% after hours.

Why it matters

AI workloads are forcing a land-grab for “AI-ready” data centers: huge power availability (measured in MW), fast construction execution, and long-duration lease contracts. Applied also highlighted major long-term leasing momentum, including a recently disclosed ~$5B lease for 200 MW at its North Dakota campus, plus leases with 2 hyperscalers across 2 North Dakota campuses.

Winners

AI data center developers and operators

More hyperscaler leasing and larger MW deals  ...