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Applied Digital Rallies on Q2 Revenue Surge, Says Hyperscaler Talks Span 900 MW

Management signals a real estate focus through a planned REIT conversion following a ChronoScale spin-out.

Overview

  • Fiscal second-quarter revenue rose 250% to $126.6 million, reflecting rapid expansion in AI-focused data centers.
  • The company said it is in advanced discussions with multiple hyperscalers for roughly 900 megawatts of capacity, with no agreements yet announced.
  • High-performance computing revenue reached $85 million, including $73 million from tenant fit-out work largely tied to CoreWeave, which carries lower margins.
  • Data-center hosting generated $41.6 million in revenue and $16 million in operating income from two North Dakota sites using 286 megawatts for crypto mining.
  • Shares have climbed about 250% over the past year as investors respond to growth and a real-estate-oriented strategy.