Should You Buy Applied Digital Stock Before Jan. 7?

1 week ago 10

Harsh Chauhan, The Motley Fool

Sun, January 4, 2026 astatine 9:05 AM CST 5 min read

Applied Digital could outpace Wall Street's expectations erstwhile it releases its fiscal 2026 Q2 results.
The information halfway specialist's lease revenue, on with a caller contract, should sharply amended its apical line.
The banal whitethorn beryllium costly close now, but investors should look astatine the bigger representation implicit the coming years.
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Applied Digital (NASDAQ: APLD) banal clocked stellar returns successful 2025, rising an unthinkable 215%. Investors person been buying shares of this integer infrastructure institution manus implicit fist to capitalize connected booming request for artificial quality (AI) infrastructure.

Applied Digital is close successful the mediate of the AI infrastructure boom, arsenic it designs, builds, and operates purpose-built information centers for high-performance computing (HPC) and AI workloads. Not surprisingly, its gross and imaginable pipeline person been increasing astatine an unthinkable pace.

However, investors whitethorn beryllium wondering if it is simply a bully thought to bargain Applied Digital banal pursuing the singular gains it clocked successful 2025. After all, the banal is expensively valued close present and has witnessed immoderate volatility of late, pulling backmost 36% from the 52-week precocious it deed successful mid-October.

But the bully portion is that Applied Digital banal could regain its mojo erstwhile the institution releases its fiscal 2026 second-quarter results (for the 3 months ended Nov. 30) connected Jan. 7. Let's look astatine the reasons why.

Person successful a suit looking astatine a machine surface with folded hands.

Applied Digital has handsomely crushed Wall Street's net expectations successful each of the past 4 quarters, reporting overmuch smaller losses than analysts had been expecting. Its outperformance tin beryllium attributed to the singular maturation successful its apical line.

For instance, Applied Digital's gross successful the archetypal 4th of fiscal 2026 (which ended connected Aug. 31, 2025) accrued by 84% from the year-ago 4th to $64 million, good up of the $50 cardinal statement estimate. The company's gross exceeded expectations acknowledgment to the $26.3 cardinal it recognized from CoreWeave for the fit-out of its information halfway astatine the Polaris Forge One analyzable successful North Dakota.

Applied Digital had completed the fit-out of the archetypal 100 megawatts (MW) of HPC hosting capableness for CoreWeave successful fiscal Q1. However, the existent wealth for Applied Digital volition travel from the lucrative lease contracts that it has signed with CoreWeave and others. CoreWeave unsocial had leased 400 MW of the under-construction information halfway capableness astatine Polaris Forge One astatine the extremity of the fiscal archetypal quarter. This lease declaration volition tally for 15 years and volition lend $11 cardinal to Applied Digital's apical enactment done its lifetime.