APLD Stock Today: January 08 – Revenue Triples, $5B Hyperscaler Deal
APLD stock is in focus today after Applied Digital’s fiscal Q2 results showed revenue up 250% to US$126.6 million and adjusted EBITDA of US$20.2 million. Management energized 100MW at Polaris Forge 1 and expanded long-term hyperscaler leases to 600MW, tied to about US$16 billion in prospective revenue. A prior US$5 billion hyperscaler deal and a planned ChronoScale spin-out add catalysts. For Canadian investors watching AI data centers, power pricing, funding costs, and build timelines will shape upside for APLD stock in 2026.
Earnings beat and multi‑year capacity growth
Applied Digital reported fiscal Q2 2026 revenue of US$126.6 million, up 250% year over year, with adjusted EBITDA of US$20.2 million. The quarter included the first 100MW energized at Polaris Forge 1 and continued ramp of long-term GPU hosting. Management detailed these results in its official press release, which investors should review alongside unit economics and build schedules.
The company’s contracted and committed leases now span 600MW, tied to roughly US$16 billion in prospective revenue. A previously announced US$5 billion hyperscaler agreement and the CoreWeave lease underpin visibility, while the 100MW ramp shows execution capacity. Market reaction followed these updates, as noted by an Investing.com report, which highlighted both growth and contract depth.
Funding, liquidity, and the ChronoScale spin‑out
Management closed US$2.35 billion in notes and drew additional Macquarie funding to support buildouts. Investors should weigh leverage against liquidity. Current ratio sits near 0.65 and debt to equity around 0.67, while free cash flow is negative. Execution on staged energization and disciplined capex will matter. APLD stock tends to react to financing updates and commissioning milestones.
Applied Digital plans to spin out its cloud unit into ChronoScale. Separating capital-intensive hosting from a higher-margin cloud service could clarify valuation and reduce dilution risk if growth funds itself with customers. For Canadian investors, this may mirror trends in AI data centers where workload demand scales faster than supply, provided contract terms protect returns through power cycles.
Price action, analyst views, and technicals
APLD stock trades near US$30.20 today, with an intraday range of US$28.56 to US$30.68 and market cap around US$8.28 billion. Shares are up about 483% over six months and 315% over one year. Analysts show 14 Buys, a median target of US$38, consensus US$34.64, and a high of US$56. EPS remains negative, so multiples reflect growth expectations.
Near-term signals are mixed. RSI at 57 sits neutral, while CCI at 143 flags overbought conditions. ADX near 13 suggests no strong trend yet. ATR of 2.53 indicates elevated daily swings, and price hovers below the Bollinger upper band at 33.36. Position sizing and stops matter with APLD stock given volatility and event-driven catalysts.
What Canadian investors should watch next
AI data centers are sensitive to power costs and reliability. While Applied Digital operates in the US, Canadian investors can benchmark pricing to provincial hydro-rich markets. Watch how new contracts pass through electricity costs, the timeline to energize each 100MW tranche, and any updates to efficiency metrics that affect cash conversion.
Key watch items include further lease signings, ChronoScale timing, commissioning updates, and debt servicing costs. Customer concentration, including the CoreWeave lease, adds both revenue visibility and risk. Applied Digital earnings updates may shift quickly as capacity ramps, so we track utilization, backlog conversion, and any revisions to the multi-year revenue outlook.
Final Thoughts
APLD stock is tied to a simple equation: add capacity on time, lock in power and customers, and convert revenue to cash. The latest quarter delivered a 250% revenue jump to US$126.6 million, 100MW energized, and leases totaling 600MW with about US$16 billion in prospective revenue. Financing provides runway, while the ChronoScale spin-out could highlight a capital-light segment. Risks remain. Free cash flow is negative, leverage is rising, and volatility is high as technicals show mixed signals. For Canadian investors, focus on energization schedules, power pass-through terms, customer concentration, and debt costs. If execution stays tight, operating leverage can drive the next leg. If delays grow, sentiment can turn fast.
FAQs
Why did APLD stock move after Applied Digital earnings?
Revenue rose 250% to US$126.6 million with US$20.2 million in adjusted EBITDA, plus 100MW energized at Polaris Forge 1. Management also highlighted 600MW of long-term leases and a US$5 billion hyperscaler deal. These factors improved visibility, which often drives re‑rating in growth infrastructure names.
What is the $5B hyperscaler deal and how does it relate to the CoreWeave lease?
The US$5 billion agreement refers to a multi‑year capacity commitment from a large hyperscaler, adding revenue visibility to Applied Digital’s hosting pipeline. The CoreWeave lease is another anchor relationship. Together they support the 600MW lease base and help justify continued buildouts, subject to execution and power costs.
How might the ChronoScale spin‑out affect APLD stock?
A successful spin‑out could separate a higher‑margin cloud unit from capital‑intensive hosting, improving transparency and potential valuation. It may also broaden financing options. Execution and customer traction will determine value. Watch timelines, governance, and whether the carve‑out reduces dilution while sustaining growth funding.
What should Canadian investors monitor over the next quarter?
Track energization milestones, new lease announcements, and updates on debt costs. Review power pass‑through terms in contracts, since electricity pricing affects margins. Also watch customer concentration risks and the cadence of Applied Digital earnings updates for signs that utilization and cash conversion are improving.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
