Consider Buying Applied Digital Stock Before January 7

Investors looking for promising opportunities in the technology sector may consider Applied Digital (APLD) stock before January 7. The company has gained significant traction in the digital infrastructure market, particularly in artificial intelligence (AI) sectors.

Impressive Growth in 2025

In 2025, Applied Digital’s stock surged by an astonishing 215%. As demand for AI infrastructure soars, the company has solidified its position by designing and operating specialized data centers for high-performance computing (HPC) and AI workloads.

Forecast for Upcoming Earnings

Applied Digital is set to release its fiscal 2026 second-quarter results, covering the three months ending on November 30, 2025, on January 7. Historically, the company has exceeded Wall Street earnings expectations for the past four quarters, often reporting smaller losses than analysts predicted.

• The company’s revenue for the first fiscal quarter was $64 million, up 84% year-over-year.
• This figure significantly surpassed the $50 million consensus estimate.
• A major contributor to this growth was $26.3 million recognized from CoreWeave, related to the data center fit-out at Polaris Forge One in North Dakota.

Long-Term Lease Contracts

Applied Digital has entered into lucrative lease agreements with CoreWeave and other clients. As of the end of the first fiscal quarter, CoreWeave had leased 400 megawatts (MW) of data center capacity, with a 15-year contract projected to add $11 billion to Applied Digital’s revenue.

Future Revenue Expectations

By the end of 2025, Applied Digital anticipates starting to recognize lease revenue, bolstered by a recently signed $5 billion, 15-year lease for a 200 MW AI factory. Analysts forecast that the company’s revenue for the fiscal Q2 could surpass the $82.2 million predicted, which represents a 29% year-over-year increase.

Stock Valuation Insights

Currently, Applied Digital’s valuation appears elevated, trading at nearly 33 times its sales. However, as the company begins to recognize larger revenues, its growth potential may justify this high valuation.

• If Applied Digital reaches the $970 million revenue estimate over the next two years, its market cap could rise to $9.7 billion.
• This would signify a 44% increase from its current market cap of $7.9 billion.

Given these factors, purchasing Applied Digital stock before its upcoming earnings report could prove beneficial. A positive performance on January 7 may trigger a significant rally in the stock price, making it an appealing investment opportunity amid the ongoing AI infrastructure boom.