Shares of digital infrastructure provider Applied Digital Corporation (APLD) have experienced an explosive surge, fueled by a partnership with AI cloud provider CoreWeave and a powerful tailwind from the booming artificial intelligence sector.
The stock has rocketed nearly 190% over the past month, with a single-day gain on June 6 pushing the price up over 18% to $15.15, captivating investors and signaling a pivotal moment for the company.
The primary catalyst for this dramatic rally is a massive $7 billion, 15-year lease agreement with CoreWeave. Under the deal, Applied Digital will provide 250 megawatts of power capacity at its data center campus in Ellendale, North Dakota.
This long-term commitment is expected to generate a stable and predictable revenue stream, transforming the company’s financial outlook and solidifying its role as a critical infrastructure provider for high-performance computing. The agreement also includes an option for CoreWeave to utilize an additional 150 MW of capacity, offering further growth potential.
The market’s reaction has been overwhelmingly positive, with trading volumes soaring to more than four times the daily average, indicating intense institutional and retail investor interest. This week alone, the stock has climbed nearly 95%, a remarkable turnaround that reflects newfound confidence in the company’s strategic direction.
The deal’s significance is amplified by both Applied Digital and CoreWeave sharing backing from AI chip giant Nvidia, firmly embedding them within the rapidly expanding AI ecosystem.
Despite the optimism, Applied Digital remains a high-volatility stock and is not yet profitable. The company has made strategic moves to bolster its financial position, including a recent equity offering to raise capital for expansion.
Investors are now keenly awaiting the next earnings report, expected between late August and early September, for further insight into how the CoreWeave partnership will impact top-line growth and the company’s path forward.
