Applied Digital (NASDAQ: APLD) stock is posting big gains in Thursday's trading. The company's share price was up 14.5% as of 3:30 p.m. ET. Meanwhile, the S 500 was up 1.1%, and the Nasdaq Composite was up 2.1%.

Along with bullish momentum for the broader market today, Applied Digital's valuation is getting a boost thanks to bullish demand indicators for the artificial intelligence (AI) data center space. and Meta Platforms released quarterly results and updated their forward guidance yesterday, and the new reports from the tech giants suggest that spending on AI hardware and processing will remain high.

With their respective quarterly reports yesterday, Microsoft and Meta Platforms helped quell concerns among investors that growth for AI might be losing steam. Some recent reports suggested that Microsoft and Amazon have canceled some data center leases and pulled back on infrastructure expansion plans, but the latest capital expenditure (capex) updates suggest that big spending to facilitate AI processing will continue.

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Source Fool.com