(Reuters) -Applied Digital beat Wall Street estimates for first-quarter revenue on Monday, as rapidly growing generative artificial intelligence (AI) technology boosted demand for the company’s data center services.
Shares of the company rose 7.4% in premarket trading.
The Dallas, Texas-based company benefited from the growing use of generative AI that require high-processing data centers to train large language models powering chatbots like ChatGPT.
“We are finalizing details for our Garden City facility and have a clear path now to reaching 500 MW across our three hosting facilities,” CEO Wes Cummins said in a statement.
Applied Digital reported revenue of $36.3 million for the quarter ended Aug. 31, compared with analysts’ average estimate of $33.8 million, according to LSEG data.
The company’s loss for the reported quarter widened to 10 cents per share from 5 cents per share a year earlier.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber)
