Applied Digital (APLD) stock jumped 30% in pre-market trading Friday after the company posted a narrower-than-expected quarterly loss and announced a new lease deal with CoreWeave (CRWV) that fills its flagship data-center site.
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For the quarter ended August 31, the company reported an adjusted loss of $0.03 per share, sharply better than Wall Street’s forecast of a $0.16 loss. Revenue reached $64.2 million, beating expectations of $50 million.
The results reflected stronger-than-expected utilization rates across its infrastructure portfolio and growing demand for AI and cloud compute power.
CoreWeave Lease Fully Books Polaris Forge 1
The highlight of the update was a new lease agreement with CoreWeave for an additional 150 megawatts of power at Applied Digital’s Polaris Forge 1 campus in North Dakota. Management confirmed that the deal brings the site to full capacity.
Executives said the agreement marks a major milestone in the company’s roadmap and strengthens its relationship with one of the fastest-growing players in AI cloud infrastructure. The full lease-out also provides clear revenue visibility for the next several years.
Applied Digital’s Revenue Pipeline Strengthens
With the new deal in place, Applied Digital expects to generate about $11 billion in contracted lease revenue from Polaris Forge 1 over the life of its agreements.
The company said construction at the North Dakota facility remains on schedule, while expansion plans continue to ramp up to meet customer demand. The update reinforces investor confidence that Applied Digital’s leasing model can scale efficiently while maintaining profitability targets.
Applied Digital Secures Funding
To support its development pipeline, Applied Digital said it has drawn $112.5 million from its $5 billion preferred equity facility with Macquarie Asset Management. The capital will go toward completing Polaris Forge 1 and funding new projects.
The company also received $50 million from Macquarie Equipment Capital and raised another $200 million from an expanded offering of its Series G preferred stock, which is a sign that institutional investors remain confident in the company’s long-term growth outlook.
Polaris Forge 2 Construction Is Underway
Applied Digital has begun work on its next site, Polaris Forge 2, which will add another 200 megawatts of capacity. The first phase is expected to go online in 2026, with full capacity by 2027.
Management said the new campus will help meet accelerating demand from AI workloads and enterprise clients.
APLD Shares Continue to Outperform
Applied Digital stock traded at $38.25 in pre-market hours after Thursday’s announcement, extending its remarkable 238% gain this year. By comparison, the S&P 500 (SPX) has risen about 14.5% in the same period.
Investors say the combination of strong results, full-site leasing, and clear execution on future projects keeps Applied Digital among the top-performing AI infrastructure names in 2025.
Is Applied Digital Stock a Good Buy?
Wall Street remains overwhelmingly positive on Applied Digital (APLD), with all eight analysts tracked in the past three months rating the stock a Buy. This has earned the stock a “Strong Buy” consensus rating.
The average 12-month APLD price target stands at $27.43, implying a modest 6.35% downside from the most recent close.
