Applied Digital (NASDAQ: APLD) experienced a sharp rally on Wednesday, with its stock price soaring more than 18% in a single trading session. This substantial increase comes amid heightened investor interest in the digital infrastructure sector, driven by the company’s recent strategic partnerships and ambitious expansion plans.
The surge follows Applied Digital’s announcement of a landmark 15-year, $7 billion lease agreement with CoreWeave, a leading provider of AI cloud solutions. Under the terms of the agreement, CoreWeave will lease up to 250 megawatts of IT capacity at Applied Digital’s Ellendale, North Dakota data center campus, with options for an additional 150 megawatts. The first phase of this project is expected to become operational in the fourth quarter of 2025, with further expansions anticipated in the following year.
This deal is widely regarded as transformative for Applied Digital, providing the company with a stable, long-term revenue stream and significantly enhancing its financial outlook. Market analysts have responded positively, with several raising their price targets for APLD and reiterating bullish outlooks on the company’s future performance. The stock has also benefited from record trading volumes, reflecting robust investor confidence in the company’s growth trajectory.
Applied Digital’s pivot toward supporting artificial intelligence and high-performance computing workloads positions it at the forefront of a rapidly evolving digital infrastructure landscape. The company’s ongoing efforts to transition into a data center real estate investment trust (REIT) are seen as a strategic move to attract new capital and further solidify its market position.
Despite the company’s recent history of operating losses and high share price volatility, investors appear focused on its long-term prospects. The expanding demand for AI-driven data processing and cloud computing capacity has created significant opportunities for infrastructure providers like Applied Digital. As the company prepares for its upcoming earnings report in July, stakeholders will be closely monitoring the execution of its CoreWeave partnership and the progress of its data center expansion initiatives.
Applied Digital’s recent performance underscores the growing importance of digital infrastructure in the modern economy, and the company’s bold strategic moves have positioned it as a key player in this dynamic sector.
