Applied Digital is set to release its fiscal 2026 Q2 results, with lease revenue and a new contract expected to boost its top line. Despite the stock being expensive, long-term investors should consider the company’s growth potential. In 2025, Applied Digital saw a 215% increase in its stock price, driven by demand for AI infrastructure. The company designs data centers for AI workloads, leading to significant revenue growth. Applied Digital has surpassed earnings expectations in the last four quarters, attributing its success to strong revenue growth. In the first quarter of fiscal 2026, revenue increased by 84% to $64 million, beating estimates. The company’s deal with CoreWeave for data center fit-out is expected to contribute $11 billion in revenue over 15 years. Applied Digital signed a $5 billion lease for an AI factory, hinting at strong future growth. Analysts predict a 29% year-over-year revenue increase for fiscal Q2, likely to be exceeded by Applied Digital. The company’s growth potential could justify its high valuation, making it an attractive investment opportunity. Analysts anticipate significant growth for Applied Digital in the coming years, suggesting a potential increase in market cap. Investors are advised to consider buying Applied Digital stock on a pullback for potential future gains.

Read more at Yahoo Finance: Should You Buy Applied Digital Stock Before Jan. 7?