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yesterday

Applied Digital Jumps on ChronoScale Carve-Out and New Financing for AI Data Centers

Investor optimism reflects a carve-out of the cloud business that focuses on GPU compute.

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Overview

  • Shares rose 14.64% on Friday to close at $28.11, extending a two-day rally tied to AI-focused momentum.
  • Applied Digital is separating its cloud unit via a merger with Ekso Bionics to form ChronoScale, with APLD retaining about 97% ownership.
  • Ekso Bionics will explore potential buyers for part or all of its business and assets following the combination.
  • APLD entered a Macquarie loan facility on Dec. 18 and plans an initial $100 million draw to fund pre-lease development of new data center campuses.
  • The company says it is in advanced negotiations with an investment-grade hyperscaler for multiple campuses, and analysts maintain a Buy consensus with an average $40.50 target and a Street-high of $56.