Applied Digital shifted its business focus from blockchain applications to high-performance AI workloads in early 2023. Since that pivot, the company’s stock has climbed roughly 1,200% and analysts now project revenue of $552 million in fiscal 2026—an 86% increase over the $297 million expected for fiscal 2025. The company’s data centers, designed to support intensive GPU workloads, are benefiting directly from more than $350 billion in planned AI capital expenditures by major cloud providers and hyperscalers for 2025, as well as government initiatives such as the U.S. Genesis Mission for national security AI development.

To fund its rapid expansion, Applied Digital has increased its share count by 196% over the past three years and carries approximately $700 million in long-term debt. During fiscal 2025, the company’s revenue grew from $8.5 million in 2022 to $144.2 million, but net losses widened from $23.5 million to $233.7 million as it built out new capacity and acquired additional GPUs. Wall Street estimates Applied Digital will report roughly $82 million in revenue and a per-share loss of $0.22 for its upcoming second-quarter results, compared with $63.9 million in revenue and a $0.06 per-share loss a year earlier. Investors should weigh the risk that ongoing capital expenditures and hardware refresh cycles could pressure profit margins until lease revenues scale further.

At year-end 2025, Applied Digital operated two North Dakota campuses totaling 286 MW of capacity and has recently completed a new 100 MW AI/HPC facility with an additional 150 MW underway—potentially more than doubling capacity in the next few years. The company has secured roughly $16 billion in lease commitments over 15 years, primarily from one major AI server customer, which underpins long-term revenue visibility once facilities come online. Applied Digital is also spinning out its cloud services unit into an independent entity, which will clear the path toward converting the core data-center business into a real estate investment trust structure that must distribute at least 90% of taxable income as dividends.