New York, June 4, 2026, 14:04 (EDT)
Applied Digital Corp shares fell in early afternoon trading on Thursday, pulling back with other AI-infrastructure names as a Broadcom-led chip selloff kept pressure on the Nasdaq.
The stock was down 2.6% at $43.57, after trading between $41.97 and $44.40. Volume was just under 10 million shares, and the company’s market value stood at about $12.3 billion.
The move matters because Applied Digital’s rally has been built less on current profit and more on contracted data-center capacity for artificial intelligence. That makes the stock sensitive when investors question how far the AI infrastructure trade can run.
Wall Street’s broader tape was mixed. The Dow hit a record, while the Nasdaq Composite slipped as Broadcom dragged on chip and AI-linked stocks after its outlook disappointed investors.
Applied Digital’s latest major company update came on May 20, when it said a new 15-year “take-or-pay” lease — a contract where the customer pays for reserved capacity even if usage varies — lifted total contracted baseline revenue to $31 billion, or $73 billion if all renewal options are used. The lease covered 300 megawatts of critical IT load, meaning power available to run servers and related equipment, at its Polaris Forge 3 campus. Applied Digital Corporation
Chairman and Chief Executive Wes Cummins called Polaris Forge 3 part of a “disciplined, repeatable AI Factory model.” He also said “momentum continues to build,” while noting the company had executed leases representing 1.2 gigawatts in 11 months. Applied Digital Corporation
That followed an April 23 lease worth about $7.5 billion at Delta Forge 1 with an unnamed U.S. investment-grade hyperscaler. Hyperscalers are large cloud-computing companies such as Amazon, Google, Microsoft, Meta or Oracle that need huge power and cooling capacity for AI systems. Reuters reported at the time that the deal lifted Applied Digital’s total contracted lease revenue to more than $23 billion.
The company is still proving that these contracts can become cash flow. In its fiscal third quarter ended Feb. 28, Applied Digital reported revenue of $126.6 million, up 139% from a year earlier, but a net loss attributable to common stockholders of $100.9 million.
Management has tried to sharpen the story. On May 5, Applied Digital separated its cloud business into ChronoScale, which began trading on Nasdaq under CHRN, while Applied retained about 97% of the new company. Cummins said the data-center hosting platform is built on “long-duration contracts and predictable infrastructure returns,” while cloud compute runs on shorter cycles. Applied Digital Corporation
Peers in the AI-compute and data-center trade were also weaker. CoreWeave, which has data-center lease ties with Applied Digital, fell 2.4%; IREN dropped 5.3%; and Core Scientific was down 3.2%.
But the downside case is straightforward: Applied Digital must finance and build large campuses on time, secure power, and turn long-dated leases into operating assets. The company has flagged risks around construction delays, customer concentration, financing availability, power disruptions and debt and equity market conditions; it also said in May that a $300 million Goldman Sachs-led bridge facility was meant to fund continued Polaris Forge 1 development while it sought additional financing.
For now, the stock is trading like a levered bet on AI data-center execution. The contracts are large. So is the burden of delivery.
