Applied Digital (APLD) exploded higher today after unveiling two ~15-year leases with Nvidia-backed cloud up-start CoreWeave that could generate about $7 billion of revenue. The stock opened +17 % on the Reuters flash but ballooned as much as +45 % on record volume once investors digested the size, duration and AI credentials of the deal.
Deal specifics: CoreWeave is taking 250 MW of new high-performance-compute capacity in North Dakota, paying fixed rates that average out to roughly $185 million a year over the term.
Balance-sheet impact: Contracted cash flows underpin Applied Digital’s pivot from volatile crypto-miner hosting to a steadier “AI data-center landlord” model, de-risking its $1 bn build-out plan and supporting the recent $375 mn SMBC project loan.
Multiple expansion story: At Monday’s intraday high of $10.95 the shares traded near 9× fiscal-2026 EBITDA (vs. ~5× pre-deal), reflecting a re-rating toward REIT-like HPC peers.
Sentiment fuel: Short interest was ~24 % of float last week; today’s vertical move triggered a mechanical squeeze that added to upside momentum.
Next catalysts: Management hosts an investor call at 11 a.m. ET; details on margin profile and cap-ex phasing could decide whether the stock holds its gains into month-end.
Bottom line: the CoreWeave pact validates Applied Digital’s AI pivot, transforms its revenue backlog, and—at least for today—turned a lightly followed crypto host into one of Wall Street’s hottest AI infrastructure names.
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Applied Digital turns to AI infrastructure; shares pop
Applied Digital (APLD) exploded higher today after unveiling two ~15-year leases with Nvidia-backed cloud up-start CoreWeave that could generate about $7 billion of revenue. The stock opened +17 % on the Reuters flash but ballooned as much as +45 % on record volume once investors digested the size, duration and AI credentials of the deal.
Bottom line: the CoreWeave pact validates Applied Digital’s AI pivot, transforms its revenue backlog, and—at least for today—turned a lightly followed crypto host into one of Wall Street’s hottest AI infrastructure names.