Applied Digital (APLD) Jumps 3% on Cloud Business Spinoff

We recently published 10 Stocks Quietly Climbing Toward 2026. Applied Digital Corp. (NASDAQ:APLD) is one of the best performers on Monday.

Applied Digital snapped a four-day losing streak on Monday, jumping 3.16 percent to close at $24.81 apiece as investors took heart from a new corporate strategy, which will see the separation of its cloud computing and data center businesses.

In a statement, Applied Digital Corp. (NASDAQ:APLD) said that it would spin off Applied Digital Cloud into a separate company through a merger with EKSO Bionics Holdings Inc., an exoskeleton technology firm for medical and industrial uses.

The proposed transaction would see the creation of a combined company called ChronoScale, which would focus solely on an accelerated compute platform for AI workloads. Applied Digital Corp. (NASDAQ:APLD) would own 97 percent of the combined firm, while EKSO Bionics would explore potential buyers for the sale of all or a substantial chunk of its business.

“As enterprise and AI-native demand for GPU-accelerated cloud infrastructure continues to grow rapidly, the proposed transaction is intended to create a focused platform designed to deliver high-performance compute at scale in a capacity-constrained market,” Applied Digital Corp. (NASDAQ:APLD) said.

“By separating the accelerated compute platform from Applied Digital’s data center ownership and development business, the proposed transaction will allow each business to scale independently, pursue distinct growth trajectories, and operate with greater strategic and capital flexibility,” it added.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.