TeraWulf rose 6% and Applied Digital gained 5% as Nvidia's forward guidance reinvigorated investor appetite for dedicated AI compute operators.

NVDA +8.74% | WULF +3.26% | APLD +2.12% | QQQ +1.37% | IREN +2.40%

David Moadel | Thu, August 27, 2026 at 11:12 AM EDT | 4 min read

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NVIDIA’s $108 billion Q3 guidance and explicit supply-constraint warning sent TeraWulf (WULF) up 7% and Applied Digital (APLD) up 5%, underscoring how contracted power capacity continues to grow scarcer and more valuable. The Global X Data Center & Digital Infrastructure ETF (DTCR) rose only 0.8%, confirming that today’s capital flows are targeting contracted AI power hosts rather than the broader data center sector.

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TeraWulf (NASDAQ:WULF) stock is up 6% to $16.90 Thursday morning, while Applied Digital (NASDAQ:APLD) shares are climbing 5% to $28.12. Both equities are riding a direct read-across from NVIDIA’s (NASDAQ:NVDA) earnings report rather than company-specific developments. NVIDIA’s stock rose 7% to $224.38 following a blowout print delivered Wednesday afternoon. Its Q2 FY2027 results and forward guidance have reignited the AI compute trade across capacity operators tied to hyperscaler and AI-lab demand. Neither TeraWulf nor Applied Digital reported anything of their own today, and no independent catalyst has been verified for either name. While a firmer cryptocurrency tape serves as a secondary contributor for these mining-heritage operators, the primary mechanism remains the NVIDIA read-across.

NVIDIA posted revenue of $96.2 billion, ahead of the $92.1 billion consensus estimate, alongside net income of $59.7 billion, representing a 126% year-over-year increase. Data center revenue reached $89 billion, up 117%, a line item that most directly reflects the hyperscaler capital expenditure fueling AI capacity buildouts. The forward guidance is what electrified the compute trade. NVIDIA’s Q3 guide sits at $108 billion, plus or minus 2%, which would mark the company’s first quarter above $100 billion in revenue and validates continued acceleration in AI data-center spending. CFO Colette Kress guided to 70% revenue growth for fiscal 2028 and confirmed the company remains supply constrained. That constraint is the critical variable for TeraWulf and Applied Digital: as the buildout proves capacity-limited, contracted power and hosting sites become increasingly scarce and valuable.

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TeraWulf and Applied Digital both convert power capacity into AI hosting contracts, which explains why NVIDIA’s demand signal transmits directly to them. They function as high-beta proxies on an infrastructure cycle they do not build themselves, priced according to the strength of hyperscaler and AI-lab commitments landing further up the stack. Volatility around these names is structurally elevated. TeraWulf carries a beta of 4.3, and Applied Digital carries a beta of 5.8, meaning any movement in the underlying compute trade gets amplified before reaching shareholders. Peer IREN Limited (NASDAQ:IREN) sits in the same read-across bucket as a contracted AI-compute landlord, carrying a signed NVIDIA cloud partnership that provides its own hyperscaler-adjacent anchor.

The defining characteristic of today’s market action is what is not participating. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) rose only 0.8% to $28.57, a fraction of the gains posted by the high-beta capacity builders. That divergence confirms today’s capital flows are targeting contracted AI power hosts rather than the broader data center sector. The move is occurring at the individual security level, with the sector basket clearly delineating the difference. Retail engagement further supports this directional read. Reddit sentiment around NVIDIA scored 74 bullish at the Thursday 6 a.m. ET boundary, marking a sharp reversal from a 38 bearish reading Wednesday morning prior to the earnings print.

Investors should maintain modest position sizes given the elevated beta involved. Intraday reversals in TeraWulf and Applied Digital can be violent, and disciplined sizing into strength on read-across trades tends to yield better outcomes. The next scheduled catalysts sit further out on the calendar. CB-4 phased delivery at TeraWulf’s Lake Mariner site and initial Polaris Forge 2 capacity milestones at Applied Digital represent the next name-specific data points investors will price. Additionally, any incremental analyst notes touching AI infrastructure hosts in the wake of NVIDIA’s report could shape the next leg of the trade.

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