Applied Digital Secures $7 Billion Deal with CoreWeave for AI Data Center Infrastructure

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.

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 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'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 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)