July 27 – Applied Digital beat Wall Street estimates for fourth-quarter revenue on Monday, riding on robust demand for \u200cits data centers from an expanding roster of AI \u200cclients. <\/p>\n
Shares of the company, which counts CoreWeave as a client, rose 5.4% in \u200bextended trading. They have risen 7.6% this year, as of Monday’s close. <\/p>\n
Applied Digital designs, builds and operates data centers and provides colocation services for artificial intelligence, networking and blockchain workloads. <\/p>\n
The company has signed \u200clong-term colocation contracts with \u2060AI and networking customers racing to secure data-center capacity to power their models and services. <\/p>\n
Here are some \u2060details: <\/p>\n
\u2022 The data center provider’s revenue surged 407% to $258.7 million for the fourth quarter ended May 31, surpassing analysts’ average estimate of $94.8 \u200bmillion, according \u200bto data compiled by LSEG. <\/p>\n
\u2022 \u200bApplied Digital reported per-share adjusted \u200cincome of 4 cents, compared to a loss of 22 cents expected by analysts. <\/p>\n
\u2022 “We are still in the early innings of what we believe will likely be the largest buildout of critical infrastructure in modern economic history,” CEO Wes Cummins said. <\/p>\n
\u2022 “We see demand \u200cfor high-power-density, purpose-built AI data centers \u200bremaining extremely robust,” Cummins added. <\/p>\n
\u2022 The \u200bcompany in June announced \u200ba 15-year lease with a U.S.-based hyperscaler at its \u200cDelta Forge 2 site expected \u200bto generate $5.2 billion \u200bin revenue. That followed the $7.5 billion long-term deal signed in April with an unnamed hyperscaler at its Delta Forge 1 \u200bfacility. <\/p>\n
\u2022 About 70% \u200cof contracted revenue is now backed by U.S.-based investment-grade \u200bhyperscalers, the company has said. <\/p>\n
(Reporting by Juby Babu in Mexico \u200bCity; Editing by Sriraj Kalluvila) <\/p>\n","protected":false},"excerpt":{"rendered":"July 27 – Applied Digital beat Wall Street estimates for fourth-quarter revenue on Monday, riding on robust demand…\n","protected":false},"author":2,"featured_media":607280,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,32731,289,290,102203,986,18,90101,19,17,67018,82,90100],"class_list":["post-607279","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-applied-digital","tag-artificial-intelligence","tag-artificialintelligence","tag-colocation-services","tag-data-centers","tag-eire","tag-fourth-quarter-revenue","tag-ie","tag-ireland","tag-robust-demand","tag-technology","tag-wall-street-estimates"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116994575218576602","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/607279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=607279"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/607279\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/607280"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=607279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=607279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=607279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}