Over the past year, Applied Digital’s share price has climbed roughly 270% as the company transitioned from serving blockchain miners to focusing on cloud, high-performance computing and AI clients. The firm builds and acquires large, power-dense data centers and leases them to third-party server operators. In 2023, Applied Digital launched Sai Computing to offer its own cloud-based AI services using Nvidia’s latest GPUs, but this unit remained unprofitable and conflicted with its goal of becoming a real estate investment trust (REIT). To resolve this, Applied Digital agreed in December to spin out Sai’s cloud business into ChronoScale via a merger with EKSO Bionics. Upon closing in H1 2026, Applied Digital will retain approximately 97% ownership in ChronoScale, which will operate separately from its core data center leasing business and enable Applied Digital to pursue stable REIT status by paying out at least 90% of taxable income as dividends.

Applied Digital has seen revenue (excluding its cloud unit) surge from $8.5 million in fiscal 2022 to $144.2 million in fiscal 2025, while net losses widened from $23.5 million to $233.7 million due to second campus build-outs and GPU purchases. At the end of fiscal 2025, the company operated two North Dakota sites totaling 286 MW of capacity. It completed a 100 MW AI/HPC building in November and is constructing an additional 150 MW facility this year, with plans for another 150 MW in the planning stage—potentially more than doubling capacity within a few years. Applied Digital has already secured approximately $16 billion in lease commitments over the next 15 years, primarily from CoreWeave, which has contracted an initial 250 MW and holds options on up to 400 MW of expanded capacity.

Applied Digital is scheduled to report its second-quarter results on January 7, 2026. Analysts anticipate a quarterly loss of $0.22 per share compared with a loss of $0.06 per share a year earlier, and revenue of $82.2 million versus $63.9 million in Q2 2025. Several top-performing firms have maintained bullish ratings: Northland Capital Markets reiterates an Outperform with a $40 target, Lake Street holds a Buy at $45, Needham maintains Buy at $41, Craig-Hallum sustains Buy with a raised target of $39, and HC Wainwright & Co. upholds a Buy at $40. These forecasts will likely be revisited after the ChronoScale transaction closes and the cloud business is deconsolidated.