Applied Digital’s Strategic Pivot Amidst Explosive Revenue Gains

Applied Digital has reported a staggering surge in revenue for its second fiscal quarter of 2026, driven by its high-performance computing operations. As the company aggressively expands its artificial intelligence infrastructure footprint, management has unveiled a strategic reorganization plan involving the spin-off of its cloud business unit, raising questions about its path to sustainable profitability.

• Revenue: $126.6 million (a 250% year-over-year increase)
• Net Loss: $31.2 million ($0.11 per share)
• Adjusted EBITDA: $20.2 million
• Major Contract: 15-year lease for Polaris Forge 2, with an approximate total value of $5 billion

In a move designed to accelerate growth, the company intends to separate Read more...