Why Applied Digital Stock Is Mooning—And What Wall Street Missed

Applied Digital’s stock isn’t just climbing—it’s leaving gravity behind. Here’s why traders are suddenly piling into this under-the-radar player.

The AI Infrastructure Play No One Saw Coming

While legacy finance snoozed, Applied Digital quietly built the backbone for the next wave of AI compute demand. Now, the market’s playing catch-up.

Short Squeeze or Sustainable Rally?

With hedge funds caught offside, the squeeze is on. But dig deeper—this isn’t just gamma-driven chaos. Real adoption metrics are flashing green.

The Cynic’s Corner

Of course, Wall Street only noticed after the institutional research teams finished their three-martini lunches. As usual, retail traders spotted the trend first.

Image source: Getty Images.

Applied Digital beat Wall Street's targets for fiscal Q4

Applied Digital published results for fiscal Q4 after the market closed on July 30, and the report and investor conference powered a massive rally for the company's share price. The data center specialist reported a non-GAAP (adjusted) loss of $0.03 per share for the period, which came in far better than the average analyst estimate's call for a per-share loss of $0.16.

Meanwhile, sales for the period came in at $38 million, which beat the average analyst estimate by roughly $880,000. Sales were up 41% year over year in the period, and the company paired the encouraging quarterly results with huge news about its relationship with CoreWeave.

CoreWeave's contract move flashes green flag for Applied Digital stock

In conjunction with its fiscal Q4 report, Applied Digital announced that CoreWeave had moved to exercise an option to secure an additional 150 megawatts of data center processing usage. Applied Digital revealed that it had entered into a $7 billion, 250-megawatt data center contract with the artificial intelligence (AI) specialist at the beginning of July, and news that its partner had quickly decided to sign on for the extra processing megawatts prompted explosive gains for the stock.