Stock Market Today, Jan. 9: Applied Digital Jumps as Investors Reprice AI Infrastructure Growth

Core Viewpoint - Applied Digital's stock surged nearly 18% due to accelerating AI-driven revenue and improved visibility around hyperscaler contracts [5][3]. Company Performance - Applied Digital's shares closed at $37.68, reflecting a 17.97% increase, with a market cap of $8.9 billion [2]. - The company has experienced a 677% growth since its IPO in 2022, with trading volume reaching 85.5 million shares, significantly above the three-month average of 32.2 million shares [2][7]. Revenue Growth - The company reported a 250% year-over-year increase in Q2 revenue, indicating a shift from speculative buildout to active deployment of AI infrastructure [5][6]. Hyperscaler Contracts - Management disclosed advanced discussions regarding a potential $5 billion hyperscaler lease, which could significantly alter the risk profile of the data center operator [6][7]. Analyst Upgrades - The surge in stock price was partly driven by fresh analyst upgrades and the strength of established data center operators, indicating a positive market sentiment towards AI infrastructure partnerships [3][7]. Future Outlook - Moving forward, the ability to secure large-scale leases and maintain high utilization rates will be critical for Applied Digital to sustain the elevated expectations reflected in its current stock price [7].