Applied Digital saw a significant surge in its stock price, closing at $37.69 after an 8.49% increase on January 23, 2026. This uptick comes amid growing optimism regarding long-term demand for data center services. The notable movement in stock price was spurred by the announcement that the company has commenced construction of a new facility dubbed the “AI Factory,” reflecting the increasing needs for its specialized AI infrastructure.
On this day, trading volume for Applied Digital reached approximately 47.5 million shares, surpassing its three-month average of 30.1 million shares by about 52%. Since its initial public offering in 2022, Applied Digital has witnessed staggering growth, with its stock price rising over 700%.
In broader market movements, the S&P 500 and Nasdaq Composite showed minimal changes, with the S&P 500 gaining just 0.03% to close at 6,915, and the Nasdaq Composite rising by 0.28% to finish at 23,501. Within the cloud computing and data analytics sectors, competing firms also experienced gains, with Core Scientific up 3.93% at $18.79 and Digital Realty Trust rising 0.45% to a close of $159.16.
This latest increase for Applied Digital follows an impressive year during which its stock price soared more than 300%. Notably, despite the positive market reception, financial commentator Jim Cramer recently suggested that investors consider taking profits.
The catalyst for today’s price rise appears to be the announcement of the Delta Forge 1, an ambitious AI factory campus expected to commence operations in mid-2027. This facility will have a robust capacity of 430 MW, further solidifying Applied Digital’s position in the AI infrastructure space.
Additionally, Texas Capital upgraded its rating on the stock from “Buy” to “Strong Buy,” while analysts from Roth Capital and Needham reaffirmed their “Buy” ratings, showcasing a strong unanimous confidence in the company’s future.
As the market continues to evolve, Applied Digital’s recent advancements and strong positioning may offer substantial opportunities for investors navigating the burgeoning AI and data center landscape.
