Tiger Global opens $33 million stake in AI data centre builder Applied Digital

Tiger Global Management has disclosed a new investment in Applied Digital, signalling a growing institutional appetite for the physical infrastructure underpinning the artificial intelligence boom. In its latest 13F filing with the U.S. Securities and Exchange Commission, the hedge fund revealed it had purchased 885,000 shares of the data centre operator, a stake valued at approximately $33 million.

The position accounts for 0.14 per cent of Tiger Global’s total portfolio. The move is part of a broader strategic shift towards AI infrastructure, with the filing also listing new positions in Cipher Digital and Core Scientific. These companies, alongside Applied Digital, represent the physical backbone required to support high-performance computing workloads, distinct from the software layer that has dominated recent market attention.

Applied Digital, which designs and builds large campuses for hyperscalers and other major technology customers, has reported significant financial momentum. In the fourth quarter of 2026, the company recorded revenue of $258.7 million, a 407 per cent year-over-year increase. Adjusted EBITDA surged to $42.4 million, up from just $1 million in the same period the previous year, while the company ended the quarter with $4.2 billion in cash.

CEO Wes Cummins described the period as a "defining quarter," noting that the company signed leases for five new campuses in the past year. These agreements contribute to a total contracted long-term lease value of $36 billion, built on 1.41 gigawatts of contracted capacity. Cummins stated that Applied Digital now expects to reach its target of $1 billion in annual net operating income about a year from now, three years earlier than originally planned.

To fund its expansion, including the Polaris Forge 2 campus, Applied Digital closed $2.15 billion in senior secured notes at 6.75 per cent. The company also secured a $300 million bridge facility led by Goldman Sachs and a revolving credit line of up to $550 million. Additionally, the firm completed the separation of its cloud computing unit, ChronoScale, which began trading on the Nasdaq in early May, with Applied Digital retaining a 96 per cent stake.

While the stock has returned more than 560 per cent over the last two years, it remains down almost 45 per cent from its all-time highs. Analysts maintain a consensus "Strong Buy" rating, with an average price target of $70.35 implying significant upside. However, investors are advised to consider the company’s execution record and constraints on power availability and supply chains before entering a position.