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The list is dominated by Applied Digital (APLD), which recorded an impressive 71.93% one-month performance. Micron Technology (MU) is the second-best performer with a 44.05% gain and holds the highest Quant Rating among the top five, earning a Strong Buy rating of 4.99. MKS (MKSI), Entegris, (ENTG), and Western Digital Corporation (WDC) complete the top five performers.

Many stocks on the list, including MKS (MKSI), Entegris, (ENTG), Lam Research (LRCX), and Applied Materials (AMAT), belong to the Semiconductor Materials & Equipment industry. Onto Innovation Inc. (ONTO) is another notable performer that received a strong assessment, earning a Buy Quant Rating of 4.47.

Here is the list:

1. Applied Digital Corporation (APLD), 1 month performance percentage: 71.93%

2. Micron Technology, Inc. (MU), 1 month performance percentage: 44.05%

3. MKS Inc. (MKSI), 1 month performance percentage: 39.84%

4. Entegris, Inc. (ENTG), 1 month performance percentage: 39.57%

5. Western Digital Corporation (WDC), 1 month performance percentage: 39.18%

6. Lam Research Corporation (LRCX), 1 month performance percentage: 33.91%

7. GlobalFoundries Inc. (GFS), 1 month performance percentage: 32.39%

8. Onto Innovation Inc. (ONTO), 1 month performance percentage: 29.84%

9. Applied Materials, Inc. (AMAT), 1 month performance percentage: 27.04%

10. KLA Corporation (KLAC), 1 month performance percentage: 26.32%

Tech ETFs: (VGT), (XLK), (IYW), (FTEC), (IXN), and (RSPT)

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“Delta Forge 1 represents the next stage of Applied Digital’s growth, as we continue to deliver AI infrastructure through disciplined execution,” said Applied Digital CEO Wes Cummins. “AI Factories succeed or fail based on how effectively power, cooling and operations are integrated. We believe this campus will be built to scale alongside hyperscale demand while delivering operational certainty for customers and lasting value for the communities where we operate.”

The Delta Forge 1 campus will initially comprise two 150-MW facilities on a 500-acre lot. Applied Digital did not reveal the precise location of this facility, only noting it’s in a strategic southern U.S. market. It is expected to be operational by mid-2027.

Applied Digital is also building a 400-MW AI and high-performance computing data center in North Dakota dubbed Polaris Forge 1. It brought its first 100 MW online during the fourth quarter of 2025.

Like several other companies, such as Core Scientific (CORZ), CoreWeave (CRWV) and Hut 8 (HUT), Applied Digital has evolved from a crypto-mining business to also providing data centers for AI and HPC workloads.

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“Looking ahead, the company disclosed 900 MW across 3 sites in advanced discussions with different investment-grade hyperscalers, with groundbreaking on at least one new campus expected by the end of January,” said B. Riley Securities analysts Nick Giles and Fedor Shabalin in a Thursday investor note. “Additionally, management emphasized increasingly favorable contract terms and stable-to-improving pricing, and the company now expects to exceed its long-term $1B NOI target within five years.”

Applied Digital reported second-quarter revenue of $126.6M, which represented nearly a 100% year-over-year increase.

B. Riley reiterated its Buy rating and $47 price target on the stock.

Meanwhile, Needham also reiterated its Buy rating and $41 price target.

“APLD is spinning out its cloud compute segment in a business combination with EKSO, which will be called ChronoScale,” said Needham analysts, led by John Todaro in a note. “ChronoScale will look to sign data center capacity from third parties as well as APLD and generated ~$60m in trailing 12 months revenues.”

Finally, Roth reiterated its Buy rating and ‘top pick’ on the stock, and nudged its price target to $58 from $56.

“APLD mentioned it is in discussions with hyperscalers (that differ from its signed contracts) for at least three additional sites and ~900MWs,” said Roth analysts Darren Aftahi and Dillon Heslin in an investor note. “Given APLD has passed initial diligence with all these hyperscalers, and has begun development level work ($45M in the Macquarie dev. credit for land, groundwork, initial equipment), we believe another lease is waiting in the wings with high probability with another hyperscaler. The point is, we believe this initial spend and pre-lease funding is foreshadowing that another lease is coming for APLD.”

Applied Digital is one of several crypto mining companies that have transitioned to providing data center infrastructure for cloud, AI and high-performance computing. Others include CoreWeave (CRWV), Core Scientific (CORZ) and Hut 8 (HUT).

Share prices for these companies were up 1%, 0.3% and down 0.5%, respectively, by late morning trading on Thursday.

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Management View

• Wes Cummins, Chairman and CEO, highlighted a series of milestones, stating, “Polaris Forge 1 reached ready-for-service, energizing 100 megawatts on schedule and completing the first of 3 contracted buildings.” He added that the remainder of the AI factory campus is expected to be completed by the end of 2027, with the site hosting 400 megawatts for CoreWeave and representing approximately $11 billion in prospective lease revenue over 15 years.
• Cummins announced, “We also announced a roughly $5 billion 15-year lease with a U.S.-based investment-grade hyperscaler for 200 megawatts at Polaris Forge 2.” He noted that this project is advancing on schedule, with initial capacity expected in 2026 and full build-out in 2027.
• Cummins stated, “Together, these agreements represent 600 megawatts of lease capacity and approximately $16 billion in prospective lease revenue across our North Dakota campuses.” He also cited increased inbound demand and advanced discussions with another investment-grade hyperscaler.
• Cummins emphasized the company’s strategic focus on the Dakotas for low-cost, abundant energy and scalable expansion, and described modular, efficient data center designs supporting multiple AI and cloud architectures.
• On business evolution, Cummins said, “We have significantly evolved our construction and design capabilities… reducing construction timelines and lowering overall cost.”
• CFO Saidal Mohmand stated, “This quarter represents a major inflection point for Applied Digital. After two years of construction and over $1 billion invested in our first 100-megawatt data center, we have now begun to generate lease revenues.”
• Mohmand explained, “We have agreements in place with top-tier financial institutions that allow us to execute this repeatable and capital-efficient framework.”
• Cummins also announced the launch of Applied Digital Cares, a new community initiative, and detailed a non-binding Letter of Intent to spin out Applied Digital Cloud with EKSO Bionics to form ChronoScale, which is expected to close in the first half of 2026. Cummins said, “Applied Digital is expected to own over 80% of ChronoScale.”

Outlook

• Cummins stated, “We now expect to surpass our long-term goal of $1 billion in NOI within 5 years.”
• The Dakota campuses are expected to maintain a strategic advantage through low-cost energy and regulatory benefits, with further announcements of additional locations anticipated in other advantaged regions.
• Mohmand noted continued ramping of lease revenues over the next quarter and “meaningful revenue growth over the coming 18 to 24 months” as 600 megawatts of buildings come online.

Financial Results

• Mohmand reported, “Revenues for the fiscal second quarter of fiscal ’26 were $126.6 million, up 250% from $36.2 million in the prior year.”
• The increase was mainly driven by $73 million from tenant fit-out services for the HPC Hosting Business and $12 million in lease revenue from the CoreWeave lease at Polaris Forge 1.
• The Data Center Hosting segment generated $41.6 million in revenue, with segment operating profit of roughly $16 million.
• Reported cost of revenues was $100.6 million, with SG&A at $57 million, impacted by $23.8 million in stock-based compensation, $4.7 million in professional service expenses, and $1.2 million in personnel expenses.
• Interest expense for the quarter was $11.5 million, and net loss was $31.2 million or ($0.11) per share. Adjusted net income was $100,000 or $0.00 per share. Adjusted EBITDA totaled $20.2 million.
• The company ended the quarter with $2.3 billion in cash, cash equivalents, and restricted cash, $2.6 billion in debt, and approximately $2.1 billion in total equity.

Q&A

• Nick Giles, B. Riley Securities: Asked about growth appetite for the cloud business and ChronoScale. Cummins responded that ChronoScale’s relationship with Applied Digital and access to large-scale data center facilities is a key advantage for deployments, but declined to share future operational specifics.
• Giles also asked about the agreement with Babcock & Wilcox. Cummins explained the solution enables earlier power delivery, stating, “If you get in line for natural gas — traditional natural gas turbine right now… we’re probably not getting delivery until 2031, 2032. For that equipment, we need power earlier than that.”
• Darren Aftahi, ROTH Capital: Asked about lease landscape and pre-lease financing. Cummins commented, “Pricing has been stable to slightly better over the past 6 months… we’re getting more favorable terms in other aspects of the contract.” On pre-lease financing, Cummins said the company proceeds with construction when it has a “high degree of confidence” in securing leases.
• Robert Brown, Lake Street: Inquired about the ChronoScale spinout timeline and growth. Cummins described a process aiming for a first-half 2026 close and cited significant growth opportunity in the compute market.
• Mike Grondahl, Northland: Questioned the breadth of advanced site discussions. Cummins replied, “We’re in advanced discussion on 3 sites in 900 megawatts,” and described the pipeline as “robust,” with scaling capability being the main focus.
• George Sutton, Craig-Hallum: Asked about the qualification process with hyperscalers. Cummins said, “Out of those 6, we’re through that process with 5 of those.”
• John Todaro, Needham: Queried about execution learnings. Cummins highlighted design and supply chain refinements, noting, “We have a really good handle on our construction time lines.”
• Michael Donovan, Compass Point: Asked about campus expansion potential. Cummins stated, “Every one of our campuses has the potential to go to at least a gigawatt. And some significantly beyond a gigawatt.”

Sentiment Analysis

• Analysts expressed strong interest in growth initiatives, expansion, and contract pipeline, with a generally positive and sometimes probing tone about risk and execution.
• Management maintained a confident tone in prepared remarks, using phrases such as “We now expect to surpass our long-term goal” and highlighted execution and strategic positioning. During Q&A, the tone remained positive, with openness about challenges and opportunities, but with increased detail and some caution regarding contract finalization and execution.
• Compared to the previous quarter, the current call reflected higher confidence in growth and execution capabilities, with both analysts and management focusing more on expansion and pipeline breadth.

Quarter-over-Quarter Comparison

• The Q2 2026 call showed increased confidence in surpassing the $1 billion NOI target, up from simply reiterating it in Q1.
• Strategic focus shifted from pipeline building to scaling execution and capital efficiency, with more detailed discussion of modular design and supply chain improvements.
• Analysts in Q2 focused more on lease terms, site breadth, and the ChronoScale spinout, while Q1 questions were more centered on financing and power infrastructure timelines.
• Key metrics showed significant revenue growth and segment profitability improvements, as well as expanded capital and liquidity positions.
• Management’s tone evolved from cautious optimism to assertive confidence, while analysts maintained a constructive but more growth-focused line of inquiry.

Risks and Concerns

• Management pointed to execution risks, especially around construction timelines and supply chain, but cited mitigation through modular design and supply agreements.
• Cummins cautioned that contract finalization is never assured until signed, signaling a risk of delays or changes in pipeline realization.
• Analysts raised questions about expansion capacity, growth pace, and execution reliability, reflecting concern over scaling limits and market competition.

Final Takeaway

Applied Digital’s Q2 2026 call highlighted the company’s progress in securing major hyperscale leases and expanding its data center footprint, with $16 billion in prospective lease revenue now under contract or advanced discussion. Management projects surpassing $1 billion in net operating income within five years, driven by rapid execution, modular construction, and robust financing structures. The spinout of Applied Digital Cloud as ChronoScale is positioned to address the accelerating AI compute market. While execution and contract risks remain, the company’s strengthened balance sheet, advanced pipeline, and strategic positioning in the Dakotas support a confident outlook for sustained growth and shareholder value creation.

Read the full Earnings Call Transcript

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Here are some of Tuesday’s biggest stock movers:

Biggest stock losers

New Era Energy & Digital (NUAI) -4.83% – Shares slid, attributed to the fallout from a civil complaint filed by the State of New Mexico Attorney General and the New Mexico Oil Conservation Division. The company characterizes the legal action as a “baseless and uninformed attack” and has vowed to fight the allegations in court. New Era explicitly denies any affiliation with Acacia Operating Company or Acacia Resources. They state that the lawsuit’s theory of a “scheme” to defraud the state is fundamentally flawed because neither the company nor CEO E. Will Gray II were ever involved with those entities. The company clarifies that the 87 oil wells cited in the lawsuit are “immaterial” to their current operations. New Era was already in the process of divesting these assets to focus on its digital infrastructure and AI business.

Society Pass Incorporated (SOPA) -26.28% -Stock were facing downward pressure in the early sessions, primarily due to investor reaction to a newly priced $3 million public offering, via issuance of 1.5 million shares at $2.00 per share. The offering is slated to close on December 31, 2025. The company intends to utilize the new capital for general corporate purposes and working capital, including operating expenses and capital expenditures.

More on related stocks:

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