Applied Digital Corporation announced that co‑founder and Chief Strategy Officer Jason Zhang will take on the role of President, working alongside Chairman and CEO Wes Cummins to steer the company’s AI‑infrastructure strategy and execution.
The appointment comes as Applied Digital accelerates its transition from cryptocurrency hosting to purpose‑built AI data‑center operations. In the most recent quarter, the company reported revenue of $126.6 million, a 250% year‑over‑year increase that far exceeded the consensus estimate of $88 million. The surge was driven by a 200% jump in AI‑hosting revenue, reflecting strong demand from hyperscalers and enterprise customers for high‑density GPU clusters.
Earnings per share for the quarter were $‑0.07, beating the consensus estimate of $‑0.12 by $0.05. The beat was largely attributable to disciplined cost management and a favorable mix shift toward higher‑margin AI‑hosting contracts, which offset the impact of higher fit‑out costs associated with expanding the Polaris Forge 2 campus. Gross margin contracted to 13% from 19% in the prior year, a result of the capital intensity of new data‑center builds and the need to absorb upfront fit‑out expenses.
Wes Cummins said, “Jason’s appointment underscores our commitment to scaling the business and executing on our AI‑factory vision.” Zhang added, “I am honored to lead the team as we expand our high‑performance AI infrastructure and deepen partnerships with hyperscalers and NVIDIA.” Their comments highlight confidence in the company’s execution and the strategic importance of the leadership change.
Analysts have responded to the results by raising price targets and upgrading ratings, citing the company’s strong revenue growth, expanding lease portfolio, and the recent $5 billion lease with a U.S. investment‑grade hyperscaler as evidence of a robust pipeline. The spin‑off of the cloud segment, ChronoScale, is also viewed as a move to sharpen focus on AI‑optimized GPU cloud services.
The appointment signals Applied Digital’s intent to solidify its position in the AI infrastructure market. The company’s recent $16 billion in contracted lease revenue over 15 years, combined with NVIDIA’s equity investment, positions it to capture a growing share of the AI‑driven data‑center demand while maintaining a disciplined capital structure through a $5 billion perpetual preferred equity facility.
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