Photo: economictimes.indiatimes.com
Applied Digital stock jumps 16% after strong Q1 results and 150-megawatt AI data center expansion
Applied Digitals stock surged 16% following robust Q1 results, bolstered by its expansion in the AI data center sector and new leases at Polaris.
- Applied Digital reported a significant increase in revenue for Q1, and its losses were smaller than anticipated, highlighting the growing demand for cloud computing services.
- The companys Polaris Forge 1 data center is now fully leased, prompting the initiation of Polaris Forge 2, which aims to expand capacity by 150 megawatts by 2026-2027.
- Analysts from Macquarie Group have raised their price targets for Applied Digital, reflecting confidence in the companys future growth in the information technology sector, particularly in artificial intelligence.
Why It Matters
This development underscores the increasing importance of data center expansions in supporting the booming cloud computing and artificial intelligence markets, positioning Applied Digital as a key player in the tech landscape.