Why Applied Digital Stock Skyrocketed This Week

Key Points

• Applied Digital posted big gains in conjunction with the quarterly results it published this week.

• The company's results in fiscal Q4 beat Wall Street's targets.

• Applied Digital announced that CoreWeave exercised an option to significantly expand its data center contract.

• 10 stocks we like better than Applied Digital ›

Despite a pullback on Friday driven by bearish macroeconomic news, Applied Digital (NASDAQ: APLD) stock managed to close out this week's trading with big gains. The company's share price ended the stretch up 16.5% compared to where it stood at the end of the previous week's market close.

Applied Digital's big rally this week stemmed from posting its report for the fourth quarter of its last fiscal year, which ended May 31. In addition to posting better-than-expected results for fiscal Q4, the company announced a major new contract with CoreWeave that helped send shares soaring.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Applied Digital beat Wall Street's targets for fiscal Q4

Applied Digital published results for fiscal Q4 after the market closed on July 30, and the report and investor conference powered a massive rally for the company's share price. The data center specialist reported a non-GAAP (adjusted) loss of $0.03 per share for the period, which came in far better than the average analyst estimate's call for a per-share loss of $0.16.

Meanwhile, sales for the period came in at $38 million, which beat the average analyst estimate by roughly $880,000. Sales were up 41% year over year in the period, and the company paired the encouraging quarterly results with huge news about its relationship with CoreWeave.

CoreWeave's contract move flashes green flag for Applied Digital stock

In conjunction with its fiscal Q4 report, Applied Digital announced that CoreWeave had moved to exercise an option to secure an additional 150 megawatts of data center processing usage. Applied Digital revealed that it had entered into a $7 billion, 250-megawatt data center contract with the artificial intelligence (AI) specialist at the beginning of July, and news that its partner had quickly decided to sign on for the extra processing megawatts prompted explosive gains for the stock.

Should you invest $1,000 in Applied Digital right now?

Before you buy stock in Applied Digital, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Digital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*

Now, it’s worth noting Stock Advisor’s total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.