Applied Digital Reports Quadrupled Revenue Amid Rising Demand for AI Data Centers
Applied Digital Corp (NASDAQ:APLD) reported a 407% year-over-year increase in fourth-quarter revenue, reaching $258.7 million as it transitions into an AI infrastructure developer. The company exceeded expectations with adjusted earnings of $0.04 per share compared to forecasts for a loss. Applied Digital is constructing five multibillion-dollar AI Factory campuses and has secured over $20 billion in new hyperscaler leases, including major contracts with CoreWeave. Despite the revenue surge, GAAP net losses nearly doubled year-over-year due largely to stock-based compensation charges totaling $127.8 million. The majority of quarterly earnings came from one-time tenant fit-out services rather than recurring lease income. CEO Wes Cummins highlighted strong demand for high-power-density AI data centers and described it as a significant infrastructure buildout. Shares rose 3.4% in premarket trading following the report.
Topics: AI infrastructure data centers hyperscalers lease agreements