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Applied Digital Corp. (NASDAQ:APLD) is one of the 10 Stocks With Shocking Overnight Gains.

Applied Digital soared to a fresh all-time high on Thursday, as investors gobbled up shares after the company clinched a new data center lease agreement with the potential to bring total leasing revenues across its AI data center portfolio to up to $73 billion.

This followed an expanded partnership with an existing US-based hyperscaler for the lease of its Polaris Forge 3, with the potential to rake in $18.2 billion in revenues if all renewal options are exercised. The base contract alone is expected to generate $7.5 billion in revenues.

A rendering of Applied Digital's Polaris Forge 2 data center. Photo from Applied Digital's website

Following the news, shares of Applied Digital Corp. (NASDAQ:APLD) climbed to its highest price of $48.57 at intra-day trading before trimming a few cents to end the session up by 21.51 percent at $48.02 apiece.

According to Applied Digital Corp. (NASDAQ:APLD), the customer was the same tenant associated with the Delta Forge 1 lease.

The Polaris Forge 3 alone is designed to deliver 300 MW of critical IT load, supported by approximately 430 MW of grid-connected utility power.

“Polaris Forge 3 is a direct extension of what we’ve proven works: a disciplined, repeatable AI Factory model that delivers large-scale capacity to the world’s most demanding compute customers,” Applied Digital Corp. (NASDAQ:APLD) Chairman and CEO Wes Cummins said.

“This … reflects the confidence we’ve built through disciplined execution and our ability to consistently advance large-scale AI infrastructure projects. We’ve earned a seat at the table with blue-chip customers, and we intend to keep that position through flawless execution and long-term operational reliability,” he noted.

While we acknowledge the potential of APLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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