Behind the Revenue Surge: How APLD Transformed from a Crypto Miner to an AI Infrastructure Star

TradingKey - AI data center services provider Applied Digital (APLD.US) reported its first-quarter results for the period ended August 31 on Thursday, delivering core metrics that significantly beat market expectations and sending its stock soaring over 16% at closing — signaling strong momentum.

The company posted:

• Revenue of $64.2 million, up 84% year-over-year, well above the analyst consensus of $50 million.
• Adjusted EPS loss of $0.03 per share, dramatically better than the expected loss of $0.13.

This performance was primarily driven by explosive demand for its data center colocation services, as more clients scale up computing capacity to train and deploy generative AI models.

During the quarter, colocation revenue reached $37.9 million. Although operating costs rose 144% year-on-year to $55.6 million, approximately $25 million of that increase was attributed to strategic investments in infrastructure development and customer onboarding for high-performance computing — expenses viewed as critical for future growth.

Applied Digital has successfully evolved from its early days as a cryptocurrency mining operation into a key player in the AI infrastructure space. In August, the company announced a new lease agreement with AI cloud provider CoreWeave (CRWV.US), adding 150 megawatts of power capacity. Combined with two prior long-term contracts, Applied Digital now expects total contracted revenue from CoreWeave to reach $11 billion, with $7 billion already secured.

These partnerships underscore the company’s growing strategic position in the hyperscale AI compute market. Analysts at Roth Capital predict Applied Digital will secure another major colocation contract before year-end, highlighting significant upside potential.

Chairman and CEO Wes Cummins stated that the new leases validate the strength of its platform and emphasized:“In a year when hyperscalers are expected to spend $350 billion on AI deployment, we are becoming the essential ‘picks and shovels’ of the intelligent era.”