APLX ETF Surges Over 32% on Applied Digital's Stellar Earnings
Leveraged fund soars as underlying asset APLD announces a 28% revenue beat and expands a key AI data center contract to $11 billion.
Investors in the TRADR 2X Long APLD Daily ETF (APLX) saw remarkable gains Tuesday, as the security rocketed over 32% higher. The surge was directly fueled by blowout quarterly results and a monumental contract expansion from its underlying asset, AI infrastructure firm Applied Digital (NASDAQ: APLD).
Applied Digital announced impressive fiscal first-quarter 2026 results, reporting . This figure decisively beat Wall Street consensus estimates of $50 million by more than 28%, signaling robust demand for its high-performance computing (HPC) data center solutions. The strong performance provided the initial catalyst for the stock's upward momentum.
Adding significant fuel to the fire, Applied Digital finalized a landmark 15-year lease expansion with AI cloud computing leader CoreWeave. The agreement, now valued at approximately $11 billion, grants CoreWeave up to 400 megawatts of capacity at Applied Digital's data center campus in North Dakota. This solidifies a long-term revenue stream and in the booming AI infrastructure sector.
The APLX exchange-traded fund is specifically designed to deliver two times the daily performance of Applied Digital's stock. As such, the flood of positive news for APLD created a magnified effect for APLX holders. While APLD shares jumped between 16% and 28% on the news, the leveraged nature of APLX resulted in its even more pronounced 32.68% rally.
Wall Street has reacted positively to the developments, with several analysts reiterating "Buy" ratings. , reflecting growing confidence in the company's strategic direction and its ability to capitalize on the insatiable demand for AI-powering data centers. The massive CoreWeave contract, in particular, provides significant revenue visibility and de-risks the company's growth trajectory in the eyes of many investors.
As the AI revolution continues to accelerate, companies like Applied Digital that provide the critical infrastructure are gaining intense investor attention. For traders utilizing leveraged instruments like APLX, such fundamental business wins can translate into dramatic, outsized returns.