Shares of Applied Digital Corporation advanced sharply on Monday, rising approximately 9.6% to close at $38.32. The stock experienced significant intraday volatility, trading between a low of $33.48 and a high of $39.33 on elevated volume.
The rally underscores Applied Digital's status as a high-beta vehicle for exposure to the artificial intelligence infrastructure sector. The company's stock often exhibits amplified moves in response to shifts in market sentiment toward technology investments.
Applied Digital, based in Dallas, specializes in designing, building, and operating data centers tailored for AI, cloud, and blockchain workloads. Its operations include hosting facilities in North Dakota and the development of high-performance computing sites. The company recently reported quarterly revenue of $126.6 million for the period ending November 30.
In its latest business update on January 7, management highlighted increased inbound demand and noted advanced discussions with another investment-grade hyperscale client. The company also recently broke ground on its Delta Forge 1 campus, a 430-megawatt data center project.
Market dynamics may be contributing to the stock's volatility. Approximately 33.6% of Applied Digital's float was held in short positions as of mid-January, a level that can exacerbate price swings during rallies. The broader technology sector also showed strength, with the Nasdaq Composite gaining about 1% on the day.
Investors are now looking ahead to key macroeconomic data for further direction, with January payroll figures scheduled for release on February 11 and the Consumer Price Index report due on February 13. These indicators could influence the near-term trajectory for rate-sensitive growth stocks.
