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Applied Digital Soars After Hyperscaler Talks—Is a $1B Windfall Coming?

Applied Digital stock surged 7% on January 8, 2026, following a series of announcements that reignited investor enthusiasm around the data center developer’s role in powering AI infrastructure. The rally came as management revealed that the company is in “advanced talks” with a new investment-grade hyperscaler for a massive 900-megawatt lease across three sites, which could be finalized as early as Q1 2026. This potential win follows previously signed leases with CoreWeave and another U.S. hyperscaler totaling 600 MW and $16 billion in potential revenue, underscoring Applied’s ambitions to become a leading AI-focused data center operator. Alongside this commercial update, the company reported fiscal Q2 2026 results that beat expectations, with adjusted EPS of $0.00 versus a consensus loss of $0.16, on the back of a 250% revenue surge. Management reiterated its outlook to exceed $1 billion in net operating income (NOI) within five years.