Highly Volatile Business

I was having a conversation with a coworker who has been reasonably successful in the investing world. Although from what i understand he does trading more so than investing.

He mentioned to me this company and I thought i would at least give them a read. He said bought in at 8$ a share and now its 32$ a share after 6 months. The allure to him is that they have $16 Billion in future contracts but are at a market cap of $7.5 Billion.

https://www.nasdaq.com/articles/could-applied-digital-be-one-biggest-winners-ai-infrastructure-boom#:~:text=Demand%20for%20Applied%20Digital%20services,growth%20embedded%20in%20its%20pipeline.

While that is true from what i can tell. My first glance at the financial health and history of the company makes me wary to buy this business. It feels more like buying a stock that you want to go up instead of investing in a business with good fundamentals.

What do you guys think?