CoreWeave Rival Applied Digital Sees Momentum Surge On 250% Revenue Growth And Cloud Business Spin Off

Applied Digital Corp. (NASDAQ:APLD) shares are flashing a powerful bullish signal, with the company's momentum score surging to the 99th percentile following a transformative second quarter with a massive revenue jump and a strategic announcement to spin off its cloud computing business.

Check out APLD stock price here.

Momentum Hits The 99th Percentile

According to Benzinga Edge’s Stock Ranking data, Applied Digital's momentum score has hit 98.93, indicating the stock's price action and volatility are currently outperforming nearly 99% of the market.

This surge coincides with a "triple-trend" buy signal, as the stock is now technically rated as positive across short, medium, and long-term timeframes.

Additional performance details, as per Benzinga's Edge Stock Rankings, are available here.

The technical breakout follows the company’s second-quarter earnings report, where APLD beat analyst estimates on both the top and bottom lines.

The stock climbed by 3.69% in extended trading on Wednesday following the release, fueling the upward trend that drove the momentum score to near-perfect levels.

The ‘ChronoScale' Catalyst

Fueling the bullish sentiment is a major corporate restructuring that went largely unnoticed in initial headlines.

During the earnings call, CEO Wes Cummins announced plans to spin off the company's GPU Cloud business into a standalone public entity named ChronoScale.

The separation, structured as a merger with EKSO Bionics, is expected to close in the first half of 2026. Applied Digital anticipates retaining over 80% ownership of the new entity.

This move effectively decouples the capital-intensive data center real estate business from the high-growth, compute-heavy cloud services division, potentially unlocking significant shareholder value.

Execution And Infrastructure Moat

Beyond financial engineering, operational execution drove the quarter's success. Applied Digital reported $126.6 million in revenue—a 250% increase from the prior year—driven largely by its High-Performance Computing (HPC) hosting business.

Critically, management revealed a novel strategy to bypass industry-wide power bottlenecks. By partnering with Babcock & Wilcox to utilize natural gas steam turbines, Applied Digital aims to bring power online 3–4 years faster than competitors waiting for standard grid connections.

With a pipeline of three additional sites totaling 900 megawatts in advanced discussions, the company is signaling it has the capacity to sustain this momentum well into fiscal 2027.

APLD Skyrockets Over 220% Over 6 Months

Shares of APLD have soared by 220.61% in the last six months and 239.38% over the last year.

While the stock closed 2.33% lower on Tuesday before gaining 3.69% after-hours, it was 6.33% higher in premarket on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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