Applied Digital Secures $7 Billion AI Infrastructure Deal with CoreWeave, Boosting Its Position in the AI Cloud Market

Applied Digital and CoreWeave ink 15-year lease worth $7 billion

Applied Digital (APLD.O), opens new tab said on Monday it has entered into two 15-year leases with CoreWeave (CRWV.O), opens new tab, a specialized cloud services provider backed by Nvidia (NVDA.O), opens new tab, which will generate about $7 billion in revenue for the data center operator over the lease period. WHY IT'S IMPORTANT The deal could prove to be a major lifeline for Applied Digital, which has been facing challenges in the data center hosting sector as it transitions into a data center real estate investment trust. The company's shares surged by 17% in premarket trading following the lease announcement. KEY QUOTES "These leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," CEO of Applied Digital, Wes Cummins, said in a statement. "Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure." CONTEXT The emergence of new cloud service providers, known as "neoclouds" like CoreWeave, focuses on renting Nvidia's highly sought-after chips to software developers. Leasing data center infrastructure from companies like Applied Digital helps reduce some of the financial burden of providing AI-centric cloud services. CoreWeave's shares were up close to 4%. Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Applied Digital shares rip 40% higher on CoreWeave AI lease agreement

Synopsys pulls full-year guidance, citing new China export restrictions CoreWeave will provide AI and high-performance computing infrastructure for the Applied Digital data center campus in Ellendale, North Dakota, according to the release. Applied Digital will provide 250 megawatts of critical IT load for CoreWeave. The campus is designed to host 400 MW of load. CoreWeave shares have been on a tear over the past couple weeks, setting a record high of $130.76 on May 29. The company, which rents AI servers powered by Nvidia chips, started trading at $39 on March 28.

This Nvidia-Backed AI Stock Soared 103% Last Week -- Watch These Key Levels

Applied Digital (APLD) shares are likely to remain on investors' radar screens after soaring last week following news of a deal to lease data center space to AI darling CoreWeave (CRWV). The company said it expects the deal, which will see it host CoreWeave AI infrastructure at its Ellendale, N.D., campus, to generate $7 billion in total revenue over a 15-year period and accelerate its strategic expansion into advanced compute infrastructure. Both Applied Digital and CoreWeave are backed by AI chip giant Nvidia (NVDA). Applied Digital shares gained 103% last week, closing Friday at $13.86. The stock has more than tripled over the past 12 months, boosted by expectations that the company sits well placed to capitalize on booming demand for AI infrastructure. Below, we take a closer look at Applied Digital's weekly chart and use technical analysis to identify important price levels that investors will likely be watching. Applied Digital shares have formed a cup and handle on the chart, with the price staging a decisive breakout above the pattern's top trendline last week, potentially signaling the start of a new longer-term move higher. It's worth pointing out that the rally has occurred on significant trading volume, indicating strong buying conviction from larger market participants. Moreover, the relative strength index confirms bullish price momentum with a reading just below the indicator's overbought threshold. Let's identify three important overhead areas on Applied Digital's chart to watch amid the stock's recent rally and also locate a major support level worth monitoring during potential pullbacks. Further buying momentum could see the shares initially climb to the $17 area. This location on the chart may provide overhead selling pressure near a series of prices situated around the stock's April 2022 countertrend high. A close above this level could fuel a rally toward $28. Investors may seek exit points in this area near two prominent peaks that formed in the chart in the fourth quarter of 2021. Investors can use the measuring principle to project a longer-term upside price target if the shares move into price discovery mode above their record high. To apply this technique, we calculate the percentage change of the cup and handle's "cup" and add it to the pattern's top trendline value. For instance, we apply a 345% increase to $10.50, which projects a target of $46.70. During pullbacks in Applied Digital shares, investors should keep a close eye on the $10.50 level. Those who prefer not to chase breakouts may seek buying opportunities near the cup and handle pattern's top trendline, an area that may flip from prior resistance into future support. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Applied Digital Stock Soars on AI Data Center Deal with Nvidia-Backed CoreWeave

Applied Digital inked a pair of 15-year deals to host CoreWeave AI infrastructure at its Ellendale, N.D., campus. The deal is expected to generate $7 billion in total revenue over the decade-and-a-half span; the company reported about $53 million in revenue in its most recently completed quarter. Both Applied Digital and CoreWeave are backed by Nvidia (NVDA), the second-most valuable company in the world and the chipmaking giant most associated with the rise of artificial intelligence. Nvidia held roughly 7.7 million shares of Applied Digital and 24.2 million shares of CoreWeave as of March 31, according to a regulatory filing. CoreWeave provides its clients with access to data centers, which are used to develop artificial intelligence models. The company's data centers are equipped with Nvidia chips.

Applied Digital soars 45% on $7 billion CoreWeave deal, expects revenue windfall from 15-year lease

Applied Digital stock soared over 45% today, driven by a massive $7 billion, 15-year lease deal with CoreWeave, a fast-growing AI cloud provider backed by Nvidia. With record trading volume and strong investor interest, APLD is gaining attention as a key player in the AI data center space. This surge highlights Applied Digital's strategic move into high-demand cloud infrastructure, making it a stock to watch ahead of its July 2025 earnings report.Applied Digital (APLD) Stock Surges Over 45% on Massive Volume Amid Big Lease Deal- Applied Digital Corporation (NASDAQ: APLD) stock exploded in morning trading today, jumping more than 45% as investors reacted to major developments. The APLD stock price hit $9.95 by 11:14 AM EDT, soaring 45.75% higher from the previous close of $6.83. This sharp rise is backed by heavy trading volume, with over 127.7 million shares exchanged so far -- more than four times its average daily volume of about 31.6 million shares. This trading frenzy puts APLD in the spotlight as one of the hottest Nasdaq stocks today. The surge follows news that Applied Digital signed two long-term, 15-year leases with cloud service provider CoreWeave, a deal expected to bring roughly $7 billion in revenue. Here are the current financial and market highlights for APLD: Despite negative earnings, investors are clearly betting on Applied Digital's future growth, particularly through its AI infrastructure push. Applied Digital's stock opened strong at $8.27, already well above the previous day's close. It's been trading between $8.03 and $10.09 this morning, showing wide price swings. The catalyst? The new lease agreements with CoreWeave, which cement Applied Digital's role in providing critical infrastructure for AI and cloud computing. CEO Wes Cummins highlighted the importance of these deals, saying they "solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing." This is a key growth area, and investors are clearly excited about Applied Digital's future prospects. Trading volume can often reveal the intensity of investor interest. Today's volume of nearly 128 million shares dwarfs APLD's average daily volume, signaling strong buying pressure. Such high volume often accompanies big news or major changes, making it easier for investors to enter or exit positions. This spike suggests that traders and institutional investors alike are taking note of Applied Digital's latest moves. It also means the stock price could remain volatile as the market digests the implications of the CoreWeave leases and other strategic initiatives. The 15-year leases with CoreWeave, backed by Nvidia, are game changers for Applied Digital. They represent a stable revenue stream estimated at $7 billion over the lease period. CoreWeave focuses on AI cloud services, renting Nvidia's powerful chips to developers -- a fast-growing niche often called "neoclouds." By leasing data center space to CoreWeave, Applied Digital reduces risk while benefiting from the booming demand for AI infrastructure. This move supports its transition into a data center real estate investment trust (REIT), a strategy that could reshape its financial outlook and stability. Applied Digital's market capitalization reached about $2.26 billion in today's trading. The company's trailing twelve-month earnings per share (EPS) stands at -$1.46, reflecting current losses, which explains why the P/E ratio isn't applicable. Investors seem focused on growth potential rather than current profits. Additionally, APLD has a high beta of 5.87, signaling it's more volatile than the broader market -- a trait typical for growth-focused tech firms. The stock is nearing its one-year target price of $10.50, adding to investor optimism ahead of the company's next earnings report scheduled for July 24, 2025. With the lease deal now public and the stock soaring, eyes will be on upcoming earnings and how Applied Digital executes its expansion strategy. The July earnings call will be critical, offering clues on how the company plans to leverage its data center assets and grow revenue from AI cloud services. Investors should also monitor overall market conditions and technology sector trends, as APLD's high volatility means it could experience sharp moves in either direction. The surge today shows promise but also underscores the risks in investing in fast-changing tech infrastructure firms. Q1: Why did Applied Digital stock jump over 45% today? A1: Applied Digital's stock surged after signing a $7 billion, 15-year lease deal with CoreWeave. Q2: What is driving investor interest in Applied Digital now? A2: Investors are focused on Applied Digital's role in AI cloud infrastructure and the CoreWeave lease deal.

Applied Digital Stock Continues To Climb: What's Going On? - Applied Digital (NASDAQ:APLD)

Applied Digital Corp APLD shares are trading higher again on Tuesday on what appears to be continued momentum following the company's deal with CoreWeave Inc CRWV. Multiple analysts lifted price targets on the stock following the announcement. What Happened: Applied Digital signed two approximately 15-year lease agreements with AI hyperscaler CoreWeave on Monday to provide 250 megawatts (MW) of critical IT load at its data center site in North Dakota. CoreWeave holds an option to expand capacity by an additional 150 MW, bringing the total potential load to 400 MW. Applied Digital said it expects to generate approximately $7 billion in revenue over the contract period. Applied Digital expects the first 100 MW data center to be ready for service in the fourth quarter of 2025. The second 150 MW data center facility is currently under construction and is expected to be ready for service in mid-2026. A third optional 150 MW data center is in the planning stages and would be ready for service in 2027. Applied Digital noted that it could expand the campus to up to one gigawatt of total power capacity to support additional infrastructure development. "We believe these leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," said Wes Cummins, chairman and CEO of Applied Digital. Applied Digital shares closed Monday up 48.5% at $10.14, according to Benzinga Pro. The stock is continuing to move higher on Tuesday. Needham maintained a Buy rating and raised the price target from $10 to $12, and HC Wainwright & Co. maintained a Buy and lifted its price target from $7 to $12. It's also worth noting that Applied Digital filed a mixed securities shelf registration and secondary offering related to the resale from time to time of up to 39.7 million shares by selling stockholders following the strong surge in shares. APLD Price Action: Applied Digital shares were up 8.29% Tuesday, trading at $10.97 at the time of publication. Applied Digital has a 52-week high of $12.48 and a 52-week low of $3.01, according to Benzinga Pro. Read Next: How To Earn $500 A Month From Hewlett Packard Enterprise Stock Ahead Of Q2 Earnings Photo: VL-PhotoPro/Shutterstock. APLDApplied Digital Corp$10.927.69%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum82.07GrowthNot AvailableQualityNot AvailableValue57.00Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$124.903.91%Market News and Data brought to you by Benzinga APIs

Applied Digital's Stunning 48% Rally May Put Shorts On The Run - Applied Digital (NASDAQ:APLD)

Applied Digital Corp APLD didn't just catch a tailwind from AI hype - it may have secured a hurricane. Monday's nearly 50% explosion in share price wasn't a fluke; it was a visceral market reaction to a $7 billion, 15-year lease deal with AI cloud heavyweight Nvidia Corp NVDA-backed CoreWeave Inc CRWV. This once-sleepy infrastructure play suddenly has the potential to be Wall Street's latest AI adjacency darling. Chart created using Benzinga Pro But here's where things get interesting: with 30% of Applied Digital's float shorted - over 62 million shares, according to Benzinga Pro data - and the stock breaking through every major moving average like a hot knife in butter, the setup for a short squeeze is no longer just theoretical. It's a live wire. Read Also: Is Nvidia-Backed CoreWeave's 195% May Rally A Massive Short Squeeze In The Making? The fundamentals? The company's pivot into high-performance computing is finally gaining traction. This CoreWeave deal alone could generate nearly half a billion dollars annually, anchoring Applied Digital's move away from crypto-dependency and deeper into AI infrastructure - a sector that commands far richer valuations. Add in technicals that are flashing bullish across the board. The MACD (moving average convergence/divergence) indicator rising, the SMAs (simple moving averages) making bullish crossovers and the RSI (relative strength index) at 77.69 - the momentum doesn't look like it's cooling anytime soon. Still, there's tension beneath the surface. Bears worry about execution risks and delayed revenue recognition - and they're not wrong to watch for potential bottlenecks in GPU delivery and facility buildouts. But that's tomorrow's concern. Today, Applied Digital stock just woke up with a catalyst strong enough to reprice the whole narrative. The next big move? Watch the short interest and volume closely. If momentum sustains and the stock stays above $10, the chase could force skeptics to rethink or capitulate. In a market where AI infrastructure is the new gold rush, Applied Digital may have just staked its claim. Whether it becomes a CoreWeave-dependent one-hit wonder or a hyperscaler-backed breakout name is still unfolding - but for now, Applied Digital has the attention, the deal and the tape on its side. Read Next: Tom Lee Predicts Bitcoin To Hit $250,000 By End Of 2025, $3M Long Term Photo: Shutterstock APLDApplied Digital Corp$10.756.02%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum82.07GrowthNot AvailableQualityNot AvailableValue57.00Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$124.033.19%NVDANVIDIA Corp$138.090.52%Market News and Data brought to you by Benzinga APIs

Applied Digital Stock Surges On AI Data Center Deal With CoreWeave: What You Need To Know - Applied Digital (NASDAQ:APLD)

Applied Digital Corp APLD shares are trading higher Monday after the company announced long-term lease agreements with CoreWeave Inc CRWV. What Happened: Applied Digital announced Monday that it entered into two lease agreements, spanning approximately 15 years, with AI hyperscaler CoreWeave to deliver 250 megawatts (MW) of critical IT load to host the company's AI and high-performance computing infrastructure at its data center site in North Dakota. CoreWeave will have the option to add an additional 150 MW of IT load at the data center location. Applied Digital expects to generate approximately $7 billion in revenue from leases over the 15-year contract period. "We believe these leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," said Wes Cummins, chairman and CEO of Applied Digital. "As demand for AI accelerates exponentially, we believe that we are uniquely positioned to deliver substantial returns while supporting the evolving and dynamic needs of these rapidly evolving sectors." Applied Digital expects its first 100 MW data center for CoreWeave to be ready for service in the fourth quarter of 2025. The second 150 MW data center facility is currently under construction and is slated to be ready for service in mid-2026. A third 150 MW data center is in the planning stages and would be ready for service in 2027 if CoreWeave decides to execute its option for the additional site. Applied Digital's site is designed to host 400 MW of critical IT load in total, but the company said it could expand the campus to up to one gigawatt of total power capacity to support additional infrastructure development. APLD Price Action: Applied Digital shares were up 22.0% at $8.33 at the time of publication Monday, according to Benzinga Pro. CoreWeave shares were up about 4.59% at last check. Read Next: Looking At CoreWeave's Recent Unusual Options Activity Photo: Gorodenkoff/Shutterstock. APLDApplied Digital Corp$8.4023.0%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum84.83GrowthNot AvailableQualityNot AvailableValue56.49Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$115.313.59%Market News and Data brought to you by Benzinga APIs

Applied Digital Stock Hits New 52-Week High: What's Going On? - Applied Digital (NASDAQ:APLD)

Applied Digital Corp APLD shares are hitting new 52-week highs in early trading Thursday. Here's a look at what's driving the action. What To Know: Applied Digital shares have seen increased momentum since the company signed long-term lease agreements with AI hyperscaler CoreWeave Inc CRWV on Monday to deliver 250 megawatts (MW) of critical IT load at its North Dakota data center campus. The contracts span approximately 15 years and are expected to generate approximately $7 billion in total revenue. CoreWeave holds an option to expand the deal by another 150 MW, which would bring the total contracted capacity to 400 MW. Applied Digital said the site could ultimately scale to one gigawatt to support future infrastructure development. The first 100 MW facility is expected to come online in the fourth quarter of 2025, followed by a 150 MW center currently under construction and set to launch by mid-2026. A third optional 150 MW facility is in the planning phase and would be ready for service in 2027. "We believe these leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," said Applied Digital CEO Wes Cummins. "As demand for AI accelerates exponentially, we believe that we are uniquely positioned to deliver substantial returns." The deal highlights continued momentum in the AI infrastructure space, as the rise of generative AI and large language models continue to drive massive demand for high-performance computing and data center capacity. Analysts React: B. Riley Securities maintained Applied Digital with a Buy rating and raised its price target from $8 to $15 on Wednesday. Here's a look at the other analyst changes that have come in since the deal with CoreWeave was announced. JMP Securities maintained a Market Outperform rating and raised the price target from $12 to $18. Needham maintained a Buy rating and raised the price target from $10 to $12. HC Wainwright & Co. maintained a Buy rating and raised the price target from $7 to $12. Craig-Hallum maintained a Buy rating and raised the price target from $10 to $12. APLD Price Action: Applied Digital has a momentum score of 97.44, according to Benzinga Pro. Applied Digital shares were up 7.09% at $14.16 at the time of publication Thursday. The stock is now up about 73% year-to-date. Read Next: Tesla Stock Tumbles Nearly 3% In Pre-Market As Elon Musk Continues Intense Attack On Trump's 'Big, Beautiful Bill' Photo: Shutterstock. APLDApplied Digital Corp$13.834.38%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum97.44GrowthNot AvailableQualityNot AvailableValue46.92Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$151.39-7.18%Market News and Data brought to you by Benzinga APIs

Why Applied Digital (APLD) Stock Hit A New All-Time High Today - Applied Digital (NASDAQ:APLD)

Shares of Applied Digital Corp APLD surged 14.0% morning Friday to $14.54, continuing an extraordinary week in which the stock jumped 81.5% since Monday's open. The rally follows the announcement of a long-term infrastructure agreement with AI hyperscaler CoreWeave Inc CRWV. What To Know: On Monday, Applied Digital revealed it had signed two 15-year lease agreements with CoreWeave to deliver 250 megawatts of critical IT load at its North Dakota data center. The deal is expected to generate approximately $7 billion in revenue, with an option to expand the project to 400 megawatts. The first phase is set to come online in fourth-quarter 2025, with further buildouts continuing through 2027. CEO Wes Cummins called the deal a defining moment, positioning Applied Digital as a key player in the high-performance computing and AI infrastructure space. Analysts responded enthusiastically, with firms including B. Riley, JMP Securities, and Needham raising their price targets, some as high as $18. Investor sentiment across the AI infrastructure sector has surged alongside booming demand for data centers and generative AI workloads. Applied Digital's stock is now trading at new 52-week highs amid this wave of optimism. Read Also: US Labor Markets Defies Tariff Concerns As Nonfarm Payrolls, Wages Top Expectations In May How To Buy APLD Stock By now you're likely curious about how to participate in the market for Applied Digital - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy "fractional shares," which allows you to own portions of stock without buying an entire share. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. According to data from Benzinga Pro, APLD has a 52-week high of $15.06 and a 52-week low of $3.01. Image: Shutterstock APLDApplied Digital Corp$14.8416.2%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum97.44GrowthNot AvailableQualityNot AvailableValue46.92Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$142.665.63%Market News and Data brought to you by Benzinga APIs

Why Applied Digital Stock Skyrocketed Again Today | The Motley Fool

Applied Digital (APLD 29.56%) stock closed out Wednesday's trading with another day of explosive gains. The company's share price was up 29.6% at the end of the daily session. Applied Digital stock rocketed higher today after B. Riley published new coverage on the company and dramatically increased its one-year valuation forecast. Investors are feeling bullish after the data-center specialist announced a major new deal with CoreWeave. Applied Digital stock is now up roughly 78% over the last week of trading. Before the market opened this morning, B. Riley reiterated a buy rating on Applied Digital and delivered a huge price-target increase for the stock. The investment firm raised its one-year price forecast from $8 per share to $15 per share following news that Applied Digital has signed a large contract with CoreWeave. At today's closing price, Applied Digital would have to rise roughly 13% higher to hit B. Riley's price target. On Monday, Applied Digital announced that it had entered into agreements to two 15-year lease agreements with CoreWeave. Applied Digital will provide data center and artificial intelligence (AI) processing hardware and services through the lease, and is expected to see approximately $7 billion in revenue from the deal. Applied Digital is restructuring some aspects of its business, but the company's recently announced deal with CoreWeave has quickly shifted the story surrounding the stock. While the company is valued at roughly $3 billion on the heels of its latest valuation run-up, having roughly $7 billion in sales already contracted for over the next 15 years establishes an encouraging performance floor. And in addition to the future sales contribution, CoreWeave's endorsement is also an encouraging sign.

Why Applied Digital Stock Soared Again Today | The Motley Fool

Applied Digital (APLD 8.57%) stock posted another day of big gains in Friday's trading. The company's share price closed out the daily session up 8.5%. The S&P 500 ended the day up 1%, and the Nasdaq Composite closed the session up 1.2%. Applied Digital stock continued to rocket higher today after the latest jobs report for the Bureau of Labor Statistics (BLS) got a bullish read from investors. The company's share price has now more than doubled over the last week of trading. The BLS published May's employment data today, and investors saw promising signs in the results. Excluding farm jobs, the U.S. economy added 139,000 net jobs last month. Meanwhile, economists had forecast 125,000 net job additions in the period. Because it could have signaled higher inflationary pressures, stronger-than-expected jobs growth could have actually been a negative indicator for Applied Digital and other growth stocks. But the BLS' update also revised April's net jobs growth figure down by 30,000 and March's jobs additions down by 65,000. The new BLS report generally signals that the U.S. economy is growing at a relatively modest pace. In turn, this makes it more likely that the Federal Reserve will lower interest rates this year. If so, that could help maintain strong momentum for Applied Digital stock. Applied Digital stock has been on an incredible hot streak after the company announced that it's entered into a new data-center lease agreement with CoreWeave. Through multiple contracts over the next 15 years, Applied Digital expects to generate more than $7 billion in sales from its service agreements with the artificial intelligence (AI) specialist. On the heels of its explosive valuation gains, the data center specialist is now valued at roughly 12 times this year's expected sales. But its big contract win with CoreWeave suggests that the company is primed to enter an explosive new growth phase.

Applied Digital Just Got A Seat With The Big Boys: Initiating With A Buy (NASDAQ:APLD)

I hereon share my sentiment on APLD stock and why I see more upsides ahead. Investment Thesis Applied Digital Corporation (NASDAQ:APLD) stock rose over 50% Monday on news that some of their Data Center space would be leased to AI darling CoreWeave, Inc. (CRWV I'm a retired Wall Street PM specializing in TMT; since kickstarting my career, I've spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of '08, and, more recently, with the AI boom. In one word, what I'd like my service to revolve around is momentum. Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Applied Digital shares surge on new AI data center lease with CoreWeave By Investing.com

Investing.com -- Applied Digital Corporation (NASDAQ:APLD) shares rose 13% following the announcement of a significant lease agreement for its upcoming AI data center in North Dakota. The company disclosed two approximately 15-year lease contracts with CoreWeave, a major player in artificial intelligence (AI) and high-performance computing (HPC), to host infrastructure at Applied Digital's Ellendale data center campus. The leases, which will provide CoreWeave with 250 megawatts (MW) of critical IT load, are anticipated to generate roughly $7 billion in revenue for Applied Digital over their term. This move is expected to solidify Applied Digital's emerging role as a key provider of infrastructure for next-generation AI and HPC applications. Furthermore, CoreWeave retains the option to expand its capacity by an additional 150 MW at the same location, potentially scaling up the campus's capabilities to meet growing AI and HPC demands. Wes Cummins (NYSE:CMI), Chairman and CEO of Applied Digital, expressed confidence in the partnership with CoreWeave and the company's strategic position to yield substantial returns while catering to the evolving needs of AI and HPC sectors. The Ellendale campus is one of the most ambitious data center projects in North America, designed specifically for high-density computing and capable of scaling up to 1 gigawatt in the future. The first 100 MW data center dedicated to CoreWeave is slated to be operational by the fourth quarter of 2025, with a second 150 MW facility expected to be ready by mid-2026. A third building, also at 150 MW, is currently in the planning phase, with an anticipated completion date in 2027. Applied Digital aims to leverage the energy-efficient climate and strategic location of the Ellendale campus to meet the rapid capacity demands and establish itself as a leader in the AI data center space. Applied Digital specializes in developing and operating state-of-the-art data centers that support a range of services, including cloud solutions as a service (CSaaS) and GPU-as-a-Service, to accommodate AI/ML, blockchain, and other HPC workloads. With this latest development, the company is poised to expand its footprint in the digital infrastructure market.

Applied Digital and CoreWeave ink 15-year lease worth $7 billion

Applied Digital said on Monday it has entered into two 15-year leases with CoreWeave, a specialized cloud services provider backed by Nvidia, which will generate about $7 billion in revenue for the data center operator over the lease period. WHY IT'S IMPORTANT The deal could prove to be a major lifeline for Applied Digital, which has been facing challenges in the data center hosting sector as it transitions into a data center real estate investment trust. The company's shares surged by 17% in premarket trading following the lease announcement. KEY QUOTES "These leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," CEO of Applied Digital, Wes Cummins, said in a statement. "Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure." CONTEXT The emergence of new cloud service providers, known as "neoclouds" like CoreWeave, focuses on renting Nvidia's highly sought-after chips to software developers. Leasing data center infrastructure from companies like Applied Digital helps reduce some of the financial burden of providing AI-centric cloud services. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)