Core Viewpoint - Applied Digital (APLD.US) reported a significant increase in revenue and improved earnings per share, driven by its high-performance computing (HPC) hosting business [1] Financial Performance - Revenue for the second quarter reached $126.6 million, a year-over-year increase of 250%, significantly exceeding analyst expectations of $86.67 million [1] - Adjusted EPS reached breakeven, outperforming analyst expectations of a loss of $0.12 per share [1]

The data-center operator indicates it could finalize a lease with an unnamed client by the start of the year. ...

ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” fourth-quarter 2025 investor letter. The investment philosophy of the strategy is to invest in leading companies that are undervalued by the market in terms of their future growth potential. A copy of the letter can be downloaded here. Large-cap stocks continued their strength in the quarter, driven by strong earnings growth from mega-cap companies and enthusiasm over generative AI. The ClearBridg ...

Core Insights - AirJoule Technologies Corporation has officially launched its participation in the Net Zero Innovation Hub for Data Centers, marking a significant step in the commercial deployment of its AirJoule™ water-from-air systems [1][3] - The company is collaborating with major global data center operators and infrastructure providers, including Microsoft and Google, to develop sustainable solutions for data center operations [2][4] - The Innovation Hub program aims to refine product-market fit and achieve commercial alignment, with expectations for significant milestones in commercialization by summer 2026 [3][5] Group 1: Company Overview - AirJoule Technologies is the only US-based company focused on water solutions selected for the Innovation Hub, highlighting its unique value proposition in addressing sustainability challenges in data centers [1][5] - The AirJoule platform utilizes waste heat from data centers to produce distilled water, addressing critical water sustainability issues in the rapidly growing data center industry [4][6] Group 2: Market Opportunity - Data centers consume millions of gallons of water daily for cooling, with over 40% of planned U.S. data centers located in areas facing high water stress [5] - The collaboration with the Innovation Hub is expected to validate AirJoule's technology for broader industrial applications beyond data centers, including advanced manufacturing and food and beverage sectors [7][8] Group 3: Strategic Partnerships - The company is leveraging partnerships with industry leaders such as GE Vernova and Carrier Global Corporation to enhance its commercial pipeline and deliver transformative water solutions [8] - The Innovation Hub provides a platform for AirJoule to scale its technology in collaboration with organizations shaping the future of data center infrastructure [7]

ALBANY, N.Y.--(BUSINESS WIRE)--Soluna Holdings, Inc. ("Soluna†or the "Company†) (NASDAQ: SLNH), a developer of green data centers for intensive computing applications, including Bitcoin mining and AI, today signed a Memorandum of Understanding (MOU) with Siemens, a leading technology company in electrification, automation and digitalization. The project will deploy and validate a behind-the- meter power-and-controls approach to manage rapid, GPU-driven swings in power demand when running AI and high-perfo ...

Core Insights - Applied Digital's stock rose by 7% in premarket trading following a strong second-quarter revenue report that exceeded Wall Street expectations, driven by demand for AI-related infrastructure [1] Revenue Performance - The company reported fiscal second-quarter revenue of $126.6 million, significantly surpassing analysts' expectations of approximately $88 million, and up from $36.16 million in the same period last year, indicating rapid growth due to increased demand for AI training and deployment [2] - Applied Digital posted a net loss of $19.1 million, or 7 cents per share, a notable improvement from a loss of $139.4 million, or 66 cents per share, in the prior-year quarter, with adjusted earnings breaking even compared to analyst forecasts of a 16 cents loss [3] Long-term Leasing Agreements - Growth is supported by long-term leasing agreements with hyperscalers, including a recent $5 billion lease for 200 megawatts of capacity at the Polaris Forge 2 campus in North Dakota, with existing leases expected to generate approximately $16 billion in revenue over their terms [4][5] - The strategic advantages of the region, such as a cool climate and abundant energy supply, position Applied Digital as a competitive provider for hyperscale customers [5] Future Outlook - Based on current and anticipated lease activity, the company expects to exceed its $1 billion net operating income target within the next five years, supported by projections for additional hyperscaler customers [6] Corporate Restructuring - Applied Digital is restructuring its corporate framework to focus on becoming a data center-focused real estate investment trust, planning to spin off its cloud services business and merge it with Ekso Bionics to create a new AI-focused entity called ChronoScale, retaining a 97% ownership stake [8][9]

Applied Digital Corp. (NASDAQ:APLD) is one of the best strong buy stocks to invest in right now. On December 30, Northland reiterated an Outperform rating on Applied Digital Corp. (NASDAQ:APLD) with a $40 price target, establishing the stock as a top pick for 2026. It stated that the company holds a strategic position to outperform its peers next year, supported by its ability to execute on schedule, the continued demand for power by hyperscalers, and its notable power assets’ pipeline. TD Cowen Stays Bul ...

Core Viewpoint - Nebius is positioned for significant growth in the AI data center market, with expectations of substantial revenue increases by 2026 [1][3]. Company Overview - Nebius, previously the parent company of Yandex, has transitioned to focus on AI data center operations after divesting its Russian assets in 2024 [3]. - The company specializes in providing training clusters of GPUs, primarily sourced from Nvidia, to meet high demand in the AI sector [4]. Growth Projections - Nebius plans to contract for 2.5 gigawatts of power by 2026, up from an initial plan of 1 gigawatt, reflecting increased demand for its services [4]. - The company anticipates an annualized revenue run rate of $7 billion to $9 billion by the end of 2026, a significant increase from $551 million as of Q3 [6][9]. Financial Metrics - Nebius currently has a market capitalization of approximately $24 billion and is trading at a price-to-sales ratio of 60 times sales, which is considered high [6][7]. - On a forward price-to-sales basis, the ratio drops to 6.6, indicating potential value as the company grows [7]. - If Nebius achieves its revenue projections and maintains a 35% operating margin, it could generate around $2.8 billion in operating profits, leading to nearly $2 billion in annual profits after accounting for taxes and expenses [9][10]. Investment Outlook - Despite current unprofitability due to heavy investment in growth, Nebius is viewed as a strong long-term investment opportunity, with potential for significant returns for shareholders by 2026 [11].

Core Viewpoint - Microsoft is expanding its data center portfolio, with plans to build a new facility in Michigan, amidst local opposition and concerns regarding energy and water resources [1][5][6]. Group 1: Project Details - Microsoft has been identified as the company planning to develop a data center on a 237-acre lot in Lowell Charter Township, Michigan [2][3]. - The project is in collaboration with developer Franklin Partners and is part of a broader strategy to nearly double Microsoft's data center portfolio in the next two years [5]. - The investment for the development is estimated to be between $500 million to $1 billion over three to five years [8]. Group 2: Community Response - Local residents have expressed concerns about the rapid rezoning process and the potential impact of the data center on energy and water resources [4][6]. - A public hearing on the proposed rezoning was postponed due to community pushback, including a notable protest where a business owner appeared in a costume to highlight opposition [4]. - Microsoft has acknowledged the community's desire for more information and has requested a pause in the rezoning process to engage with residents [5]. Group 3: Industry Context - Major tech companies, including Microsoft, are investing heavily in data centers, driven by the demand for infrastructure to support artificial intelligence workloads [5][6]. - There are concerns that the significant capital expenditures by these companies could lead to another industry bubble [6]. - Utilities in some U.S. markets are struggling to meet the energy demands of these planned data centers, complicating site selection [6][7].

Financial Data and Key Metrics Changes - Revenues for the fiscal second quarter of 2026 were $126.6 million, up 250% from $36.2 million in the prior year [12] - Adjusted EBITDA for the quarter totaled $20.2 million [15] - Net loss was $31.2 million, or $0.11 per share, while adjusted net income was positive $100,000 or $0 per share [15] Business Line Data and Key Metrics Changes - The data center hosting segment generated $41.6 million of revenue, up 15% compared to the prior year, driven by increased capacity online [13] - Turnkey fit-out services associated with the HPC hosting business contributed $73 million to revenue [12] Market Data and Key Metrics Changes - The company has secured two hyperscale leases in North Dakota, representing 600 megawatts of lease capacity and approximately $16 billion in prospective lease revenue [6][10] - Inbound demand for data center capacity has increased significantly due to competition among hyperscalers [6] Company Strategy and Development Direction - The company aims to surpass its long-term goal of $1 billion in NOI within five years, leveraging low-cost energy and a supportive regulatory environment in the Dakotas [17] - A non-binding letter of intent has been entered to combine Applied Digital Cloud with Exo to form Chronoscale, allowing each business to scale independently [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the contracting environment has become more favorable over the past six months, with stable to slightly better pricing [31] - The company is in advanced discussions for three additional sites representing 900 megawatts, indicating a robust pipeline [48] Other Important Information - The company completed a $2.35 billion private offering of senior secured notes to finance the first two buildings at Polaris Forge One [12] - The company ended the quarter with $2.3 billion in cash and cash equivalents, positioning it well for future investments [15] Q&A Session Summary Question: Growth appetite in the cloud business and future GPU purchases - Management highlighted the advantage of having access to large-scale data center facilities for Chronoscale, which will help attract customers [22][23] Question: Landscape for leases and pricing changes - Management indicated that pricing has been stable to slightly better, with more favorable terms in contracts [30][31] Question: Expansion opportunities at PF1 and PF2 - Management confirmed that each campus has the potential to reach at least a gigawatt, with a clear path to grow capacity significantly [72][75]