Will APLD’s $7B deal with CoreWeave make it a long-term AI stock winner?
Applied Digital Soars After $7B CoreWeave Deal
Applied Digital Corporation (NASDAQ: APLD) surged over 50% today after announcing two major 15-year lease deals with Nvidia-backed CoreWeave worth a combined $7 billion. The agreements involve 250 megawatts of data center capacity with potential for more, aimed at supporting artificial intelligence and high-performance computing. The news propelled APLD to an intraday high of $10.54 and sparked bullish analyst reactions, with firms like Needham maintaining a “buy†rating and Northland raising its price target to $20. These long-term contracts also support Applied Digital’s ongoing pivot into a data center REIT model, positioning it as a key infrastructure player in the AI boom. With the next earnings report due August 21, investors are watching closely.
Options
- Yes, this is a game-changer
- Promising but early
- Too risky still
- Only short-term hype
- Not familiar with APLD