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Applied Digital (APLD) is soaring to new highs today after reporting its Q1 (Aug) results last night. The AI data center infrastructure developer handily beat expectations on both the top and bottom line, with revenue rocketing 84.3% yr/yr (68% sequentially) to $64.21 mln. The stock continues to build on its impressive run from its April low, up over 1000%, as the bullish commentary from management seems to have satisfied high growth expectations.

• In addition to the underlying leases with CoreWeave (CRWV) at Polaris Forge 1, which total about $11 bln over 15 years, CRWV engaged to perform the first 100 MW fit-out.
• Management targets roughly $500 mln in annual NOI once PF1 is fully online.
• Also broke ground on new campus, Polaris Forge 2, with initial construction totaling 300 MW IT load and capacity to scale to 1 GW. First power is expected in late 2026 and full capacity by 2027.
• PF2 is expected to drive the next major NOI leg toward APLD's $1 bln run-rate goal within five years. The company is in advanced lease talks with an investment-grade hyperscaler for PF2 and negotiating with two more for new sites.
• Its investments are just beginning to generate returns, with the PF1 fit-out setting up lease revenue later this year. It contributed $26.3 mln in Q1 and is expected to ramp significantly next quarter.
• While power availability has been the key focus across the industry, APLD says its priority is shifting toward scaling, development, and construction, backed by its 4 GW active pipeline.
• As demand shifts from GPUs to AI-ready data centers, APLD believes it is well positioned to meet the growing infrastructure gap and help enable the roughly $350 bln in hyperscaler investments expected this year.

Briefing.com Analyst Insight

This was an impressive start to FY26, underscored by expanding contracts, accelerating monetization, and a clear roadmap toward profitability. The $11 bln CoreWeave lease and PF2 build mark major visibility milestones, with management noting this is only the beginning. The company continues to execute well and maintain discipline on financing. Investors should monitor PF1 and PF2 construction timelines, project-finance progress, and APLD's ability to sustain its 12-14 month build cadence as it scales multiple campuses in parallel. The stock remains one to watch in the AI infrastructure buildout.