On February 28, 2026, financial analyst Jim Cramer reiterated his bullish stance on Applied Digital (ticker: APD), declaring it a must-own stock due to strong revenue expansion and strategic positioning in digital infrastructure. The recommendation follows recent financial results and operational upgrades.
- Applied Digital reported $287 million in Q4 2025 revenue, a 42% year-over-year increase
- Adjusted EBITDA reached $56 million in the same quarter
- 19% improvement in gross margin compared to prior year
- Acquisition of two data centers expanded colocation capacity by 38%
- Customer retention rate was 94% in 2025, serving over 1,200 enterprise clients
- Stock rose 7.3% in after-hours trading following Cramer’s commentary
Jim Cramer has issued a strong endorsement for Applied Digital, urging investors to add the stock to their portfolios. Speaking during a live segment on financial television, Cramer highlighted the company’s 42% year-over-year revenue increase in Q4 2025, which reached $287 million, driven by expanded cloud services and data center utilization. He cited the company’s 19% gross margin improvement and $56 million in adjusted EBITDA as key indicators of operational efficiency and scalability. Cramer emphasized that Applied Digital’s recent acquisition of two underutilized data centers in Texas and Virginia has significantly enhanced its capacity, increasing total colocation space by 38%. This move positions the company to capture demand from large-scale AI workloads and enterprise clients seeking low-latency infrastructure. The analyst noted that the company now serves over 1,200 enterprise clients, including several Fortune 500 firms, with a 94% customer retention rate in 2025. Market reaction followed the commentary, with Applied Digital’s stock rising 7.3% in after-hours trading, bringing its market capitalization to $6.2 billion. Institutional interest has also grown, with three new hedge funds disclosing positions totaling $184 million in the quarter ending February 2026. Cramer warned that short-term volatility may occur but reiterated that long-term fundamentals remain robust. The recommendation extends beyond financial metrics—Cramer pointed to the leadership team’s execution record, including the successful rollout of a new AI-optimized network layer in Q1 2026. He concluded that Applied Digital is uniquely positioned at the intersection of digital transformation and infrastructure modernization, making it a strategic play in the evolving tech landscape.