Shares of Applied Digital Corp (APLD) are soaring 5.01% in pre-market trading on Thursday, following the company's impressive third-quarter earnings report that surpassed Wall Street expectations. The strong performance is attributed to accelerated demand for AI and high-performance computing infrastructure, signaling robust growth in the company's core business segments.

Applied Digital reported a revenue of $64.22 million, beating analyst estimates of $54.59 million by 17.6% and marking an 84.3% year-on-year growth. The company's adjusted earnings per share came in at -$0.03, significantly outperforming the expected -$0.16. CEO Wes Cummins highlighted the company's success in securing and delivering large-scale data center projects, particularly through its partnership with CoreWeave, as a key driver of the substantial increase in contracted revenue and operational integration.

Looking ahead, analysts are focusing on Applied Digital's ability to convert its development pipeline into signed long-term leases with new hyperscale customers. The company's pre-secured manufacturing capacity and efforts to obtain facility-wide financing for major projects like Polaris Forge One indicate a strategic approach to managing growth and mitigating industry-wide supply chain constraints. As Applied Digital continues to expand its operations and strengthen its position in the AI infrastructure market, investors will be closely watching the execution of ongoing construction projects and the company's ability to maintain efficient cost structures amidst rapid expansion.