Core Viewpoint - Applied Digital is navigating challenges in its data center hosting business while making significant progress in growth initiatives, particularly in cloud services and high-performance computing (HPC) infrastructure development. Financial Performance - For the fiscal fourth quarter of 2024, revenues reached $43.7 million, a significant increase from $22 million in the same period of 2023, driven by expanded capacity and cloud service contributions [12] - The data center hosting segment generated $26.9 million in revenue, while the cloud services segment contributed $16.8 million [12] - Adjusted EBITDA for the quarter was approximately $4.8 million, compared to $3.4 million in the fourth quarter of 2023 [15] - The net loss for the quarter was $64.8 million, or $0.52 per share, compared to a net loss of $6.5 million, or $0.07 per share, in the same quarter of the previous year [14] Business Developments - The company is developing a 100-megawatt HPC data center in Ellendale, North Dakota, with a letter of intent signed with a US-based hyperscaler for a total of 400 megawatts [5][10] - The Jamestown facility has operated at full capacity for seven consecutive quarters, while the Ellendale facility faced power outages due to transformer failures, which have now been resolved [6][5] - The cloud services business is expanding, with six clusters online in the first quarter of 2025, projecting an annual revenue run rate of $100 million to $110 million [28][67] Strategic Focus - The company aims to finalize a lease agreement with a Fortune 50 company for the Ellendale campus, which is expected to enhance its position in the HPC market and facilitate project-level financing [19][20] - Applied Digital is actively marketing three additional campuses totaling 1.4 gigawatts, with a focus on securing power availability and fiber connectivity for future developments [10][40] - The company is committed to improving its capital structure to support growth in both data center and cloud services, emphasizing the need for asset-level financing [32][67] Market Position - The competitive landscape includes established private data center companies, but Applied Digital differentiates itself by prioritizing power availability and site selection based on connectivity needs [59][64] - The company is focused on near-term power solutions and has developed a refined approach to site selection that considers latency and redundancy requirements [57][64]

You may get Applied Digital Securities and Exchange Commission filings for free by visiting the SEC website at www.sec.gov. Lastly, I'd like to remind everyone that this call is being recorded and will be made available for replay via link in the Investor Relations section of Applied Digital's website. Now I'd like to turn the call over to Applied Digital's Chairman and CEO, Wes Cummins. Wes?We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events tha ...

Group 1 - Applied Digital Corporation (NASDAQ:APLD) is involved in designing, building, and operating data centers that support high-performance computing and AI workloads [2] - The stock has gained attention due to the trend of cryptocurrency miners converting their operations into AI data centers, with significant price movements noted in the sector [1] - Recent IPOs in the sector, such as CoreWeave, have led to substantial stock price increases, with some companies like IREN and Riot Platforms seeing gains of over 40% [1] Group 2 - Despite the potential of APLD as an investment, there are other AI stocks that may offer greater upside potential and lower downside risk [3] - The article suggests that APLD and similar companies have experienced significant volatility, with declines of 50% to 57% from peak to trough [1]

Heading into 2026, Applied Digital (APLD) finds itself in bad company: it was among the most shorted stocks in the tech sector in December. High short interest is usually a sign that traders believe something is fundamentally wrong with the company or the industry it operates in. For Applied Digital, this development is particularly surprising, as the company seems to be doing a good job of carving out its place in the industry, which itself is expected to continue growing in the near term. Despite the a ...

Core Insights - Applied Digital has commenced construction on Delta Forge 1, an AI Factory campus designed to support an initial 430 MW of total utility power across two buildings, with significant scalability potential [1][2][4] Company Overview - Applied Digital specializes in designing, building, and operating high-performance, sustainably engineered data centers and colocation services tailored for artificial intelligence, cloud, networking, and blockchain workloads [7] - The company is headquartered in Dallas, TX, and was founded in 2021, recognized as the Best Data Center in the Americas 2025 by Datacloud [7] Project Details - Delta Forge 1 will initially consist of two 150-MW facilities covering over 500 acres, expected to create more than 200 full-time jobs and additional long-term contractor positions [3] - The campus is engineered to support advanced cooling and operational requirements for large-scale AI workloads, ensuring reliability and efficiency [2][4] Strategic Importance - Delta Forge 1 represents a critical growth phase for Applied Digital, addressing the increasing demand for AI infrastructure by integrating power, cooling, and operations effectively [4] - The project is expected to leverage the company's proprietary AI Factory blueprint, which has been refined through previous campuses, allowing for consistent and precise replication across markets [6] Market Demand - There is strong demand for purpose-built AI infrastructure capable of supporting high-density workloads, as evidenced by ongoing discussions with prospective investment-grade hyperscale customers [5]

Group 1 - Shares of Applied Digital (NASDAQ: APLD) fell by 5.2% amid a broader market sell-off, with the S&P 500 and Nasdaq Composite experiencing declines of 2.1% and 2.4% respectively [1] - The company's stock decline is linked to President Trump's ongoing demands for U.S. control of Greenland, which has raised concerns about potential trade tensions [2][6] - Applied Digital's business model, characterized by heavy reliance on debt, makes it particularly vulnerable to economic slowdowns, which could impact its growth prospects [3][6] Group 2 - Analysts from The Motley Fool Stock Advisor have identified ten stocks they believe are better investment opportunities than Applied Digital, suggesting caution for potential investors [4][6] - Historical performance of stocks recommended by The Motley Fool indicates significant returns, highlighting the importance of careful stock selection [5]

Core Insights - Applied Digital (APLD) and Sandisk (SNDK) are positioned to benefit from the rapid growth of AI-driven data infrastructure, with APLD focusing on data center development and SNDK providing high-performance NAND flash storage [1][6] Industry Overview - The global digital infrastructure market was valued at approximately $360 billion in 2025 and is projected to exceed $1.06 trillion by 2030, indicating a compound annual growth rate (CAGR) of about 24.10% [2] Applied Digital (APLD) - APLD's strategy involves building data centers in cost-effective locations, such as North Dakota, which offers inexpensive energy and favorable regulations, thus reducing operational costs [3] - APLD has secured a $5 billion, 15-year lease for 200 megawatts at Polaris Forge 2, with total contracted capacity reaching 600 megawatts and prospective lease revenues of approximately $16 billion over 15 years [4] - The company is investing in advanced liquid cooling and collaborating with Babcock & Wilcox for grid power expansion, enhancing its position in the data center ecosystem [4] - The Zacks Consensus Estimate for APLD's fiscal 2026 loss is projected at 36 cents per share, indicating an annual improvement of 55% [5] Sandisk (SNDK) - SNDK supplies NAND flash storage that meets critical AI infrastructure needs, with disciplined capacity expansion to support sustainable market growth [6] - The company’s BiCS8 technology, developed with Kioxia, enhances capacity and energy efficiency, accounting for 15% of bit shipments in the fiscal first quarter [7][8] - SNDK's data center segment grew 26% sequentially in the first quarter, with a focus on high-bandwidth flash technology for AI inference applications [9] - The Zacks Consensus Estimate for SNDK's fiscal 2026 EPS is projected at $13.46, reflecting a substantial improvement from the previous year's EPS of $2.99 [10] Price Performance and Valuation - Over the past six months, SNDK shares have increased by 894%, while APLD shares have risen by 237.2%, with SNDK's performance driven by improving earnings visibility and data center demand [11] - SNDK trades at a forward price-to-sales ratio of 5.08x, compared to APLD's 22.98x, indicating that SNDK's fundamentals are not fully reflected in its valuation [14] Conclusion - Both APLD and SNDK are positioned to benefit from AI-driven data infrastructure expansion, but SNDK's growth profile appears more balanced, with improving earnings visibility and disciplined capacity expansion [16][18]

Company Overview - Applied Digital Corp (NASDAQ:APLD) operates in the digital infrastructure sector, providing solutions for high-performance computing applications and is known for its innovative approach [1] Insider Activity - On January 16, 2026, Wes Cummins, CEO and Chairman of APLD, sold 165,000 shares at $36.42 each, but still holds 4,176,329 shares, indicating confidence in the company's future [2] - Douglas Miller, a Director at APLD, sold 10,000 shares at an average price of $38.54, totaling $385,400, reducing his position by 4.74% [3] Financial Health - APLD's stock opened at $35.22, showing a 2.4% decrease, with a debt-to-equity ratio of 1.79 and both quick and current ratios at 4.82, suggesting a strong liquidity position [4][6] - The stock has a 52-week range between $3.31 and $40.20, currently priced at $37.40, reflecting a 6.19% increase with a trading volume of 31.23 million shares [5] - The company's market capitalization stands at approximately $10.46 billion, indicating a substantial presence in the market [5]

Core Insights - Applied Digital rebranded from Applied Blockchain to reflect its transition to an AI infrastructure provider in November 2022 [1] - The stock has increased by 1,720% over the last three years, with significant gains following a lease deal with CoreWeave, totaling $11 billion in anticipated revenue from two agreements [2] Stock Performance and Potential Actions - A stock split could be considered to enhance liquidity, but currently, there is no immediate benefit for Applied Digital to execute a split [5][7] - The stock is trading under $40, making it relatively affordable despite its substantial price increase [6] Industry Position and Growth - Applied Digital is well-positioned in the high-demand AI infrastructure market, with its Polaris Forge campuses benefiting from low energy costs and efficient cooling [8] - The company reported a 250% year-over-year revenue increase, supported by a significant backlog from deals with hyperscalers [9]

Group 1 - AI stocks have been central to the stock market rally over the past three years, with expectations for continued growth in the new year [1] - Wall Street projections indicate that the S&P 500 index could rise to 7,500 points by the end of 2026, driven by AI infrastructure spending, with Deutsche Bank forecasting an even higher target of 8,000 points [2] - Investors are encouraged to consider AI stocks for potential growth, with Applied Digital and SoundHound AI highlighted as strong candidates for investment in 2026 and beyond [3] Group 2 - Applied Digital is a significant player in the AI hardware ecosystem, focusing on data centers for high-performance computing and AI workloads [5] - The company reported a 250% year-over-year revenue increase to nearly $127 million, surpassing analyst expectations of $88 million, driven by data center services for clients like CoreWeave [6] - Applied Digital has secured lease contracts for 600 megawatts of data center capacity and is in advanced discussions with another hyperscaler, with a projected lease revenue pipeline of $11 billion over 15 years [8]