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applied digital Shares rose 16% on Friday after the company posted strong first-quarter earnings driven by demand for its artificial intelligence data centers, pushing its annual stock price up more than 350%.
Here’s how the company performed compared to LSEG’s estimates:
Loss per share: 7 cents loss, expected 13 cents Earnings: $64.2 million, expected $50 million.
First-quarter sales were $64.2 million, an 84% increase compared to sales of $34.85 million in the same period last year.
The data center company announced its earnings after the bell Thursday.
During the quarter, Applied Digital announced that under $7 billion in lease agreements, coreweave In June, it was announced that the company would add an additional 150 megawatts to its Polaris Forge 1 campus in North Dakota. This additional capacity is expected to result in up to $11 billion in contracted lease revenue for this project.
“With hyperscalers expected to invest approximately $350 billion in AI deployments this year, we believe we are well-positioned to serve as the modern workforce for the intelligence era,” CEO Wes Cummins said in a release.
The new 150 MW building will join two other data cell blocks accommodating 100 MW and 150 MW respectively. The company said one building is nearly complete and construction will begin on the other.
Applied Digital has also secured funding from Macquarie Equipment Capital to build its second campus, Polaris Forge 2, in North Dakota. The estimated $3 billion factory will include two 150 MW buildings, with a total leased capacity of 600 MW for both campuses.
The first 200MW of power is expected to come online in 2026 and reach full capacity in 2027, the company said.
The company’s first-quarter net loss was $18.5 million, or a loss of 7 cents per share. A year ago, the company reported a net loss of $4.29 million, or a loss of 3 cents per share.
Analysts surveyed by LSEG expect second-quarter sales of $76 million and a loss of 15 cents per share.
Applied Digital’s 5-year stock price chart.
