On Thursday, Applied Digital ($APLD), a company held in Nvidia’s portfolio, surged over 18% in early trading to $34.985. The stock recorded a cumulative gain of approximately 220% last year.

The rally follows the company’s announcement of its financial results for the second quarter of fiscal year 2026 (ended November 30, 2025):

• Revenue: $126.6 million, representing a 250% year-over-year increase.
• Net Loss: Basic and diluted net loss per share attributable to common stockholders was $0.11, a narrowing of 82% compared to the previous year.
• Adjusted Net Income: Reported at $100,000.

Management stated that AI infrastructure represents a “once-in-a-generation” investment opportunity. Capital expenditure by hyperscalers has already exceeded $400 billion annually and continues to grow rapidly.

Applied Digital believes it is well-positioned through its early strategic investments in customized, next-generation data centers. The company expects to achieve its goal of over $1 billion in Net Operating Income (NOI) within the next five years.