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Applied Digital stock climbs 16% as AI demand fuels data center growth

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Applied Digital shares jumped 16% on Friday after the company posted strong first-quarter revenue that was boosted by artificial intelligence data center demand, putting the stock up more than 350% for the year.

Here's how the company did compared to LSEG estimates:

Loss per share: Loss of 7 cents vs. a loss of 13 cents expected

Loss of 7 cents vs. a loss of 13 cents expected Revenue: $64.2 million vs. $50 million expected

First quarter revenue of $64.2 million was up 84% from a year ago, when it reported $34.85 million in revenue.

The data center company reported earnings after the bell on Thursday.

During the quarter, Applied Digital built on its $7 billion lease agreement with CoreWeave that was announced in June for another 150 megawatts at the firm's Polaris Forge 1 campus in North Dakota. The additional capacity brings the anticipated contracted lease revenue for the project up to $11 billion.