Applied Digital, a digital infrastructure innovator, designs, builds, and operates next-generation data centers for high-performance computing, AI, cloud, and networking. The company prioritizes purpose-built data centers for AI and GPU-intensive workloads, distinguishing itself from competitors retrofitting older facilities. It operates through data center hosting, cloud services, and HPC segments across North America, supporting hyperscale customers and mission-critical workloads via its Polaris Forge campuses. Recent financial disclosures for Fiscal Q2 2026 showed robust revenue growth, reaching $126.6 million, a 250% increase year-over-year, primarily driven by Polaris Forge 1 activity, including tenant fit-out services and rental revenues. However, this growth was accompanied by a 344% rise in the cost of revenues to $100.6 million due to fit-out expenses, higher energy costs, and administrative expenses, the latter largely impacted by stock-based compensation and professional services. Despite increased costs, net loss attributable to common stockholders significantly decreased by 76% to $31.2 million, indicating improved operational efficiency. Key growth catalysts include the completion and energizing of Polaris Forge 1 and an announced 15-year lease for Polaris Forge 2, expected to generate approximately $5 billion in revenue. The company also secured $16 billion in long-term contracts, projected to yield about $1 billion annually for the next 15 years. A strategic move involves the planned spin-out of its digital cloud business into ChronoScale, an entity dedicated to GPU-optimized AI infrastructure. This separation is expected to enhance strategic clarity and long-term scaling potential, with Applied Digital retaining approximately 97% ownership. While these developments are positive, significant risks remain, including execution risk on large-scale builds, separation uncertainty for ChronoScale, and a persistent lack of overall profitability guidance from management since 2021. The stock has demonstrated high volatility, yet analysts maintain a strong buy consensus with a high target suggesting substantial upside.