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Applied Digital (APLD) shares soared as much as 48% after the company announced a landmark $7 billion, 15-year lease agreement with AI cloud hyperscaler CoreWeave. The deal, which will see Applied Digital deliver 250 megawatts (MW) of data center capacity for CoreWeave’s artificial intelligence and high-performance computing (HPC) needs, has electrified the tech and investment world. Here’s the complete story: why the stock is surging, what the deal means for both companies, and what it signals for the future of AI infrastructure in the US and beyond.
Economic Times: Applied Digital Soars on $7 Billion CoreWeave Deal
📰 Breaking News: The $7 Billion CoreWeave Lease Deal
🗓️ June 2, 2025: Applied Digital (APLD) and CoreWeave announce two 15-year lease agreements for 250MW of AI and HPC data center capacity at Applied Digital’s Ellendale, North Dakota campus.
💰 Deal Value: Approximately $7 billion in total revenue for Applied Digital over the life of the leases.
⚡ Expansion Option: CoreWeave can access an additional 150MW at the same site, positioning Ellendale as a major AI and HPC hub.
🤝 Strategic Importance: CEO Wes Cummins says the deal “solidifies Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing.”
🔗 CoreWeave: A fast-growing AI cloud provider backed by Nvidia, specializing in renting out GPU compute for AI developers and enterprises.
🏗️ APLD’s Role: Applied Digital designs, builds, and operates next-gen digital infrastructure for high-performance computing and blockchain applications.
GlobeNewswire: Applied Digital Announces 250MW AI Data Center Lease With CoreWeave
💰 Deal Value: Approximately $7 billion in total revenue for Applied Digital over the life of the leases.
⚡ Expansion Option: CoreWeave can access an additional 150MW at the same site, positioning Ellendale as a major AI and HPC hub.
🤝 Strategic Importance: CEO Wes Cummins says the deal “solidifies Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing.”
🔗 CoreWeave: A fast-growing AI cloud provider backed by Nvidia, specializing in renting out GPU compute for AI developers and enterprises.
🏗️ APLD’s Role: Applied Digital designs, builds, and operates next-gen digital infrastructure for high-performance computing and blockchain applications.
📈 Why Did APLD Stock Rip Higher? Market Reaction & Trading Frenzy
📈 Stock Surge: APLD opened at $8.27, soared as high as $10.09, and was up 45–48% in heavy trading, with volume exceeding 127 million shares—over 4x its daily average.
💹 Market Cap: Jumped to $2.26 billion, reflecting renewed investor confidence.
🔄 Volatility: The stock’s beta is 5.87, indicating high volatility typical of growth tech firms. APLD is now near its 1-year price target of $10.50.
🔍 Investor Focus: Despite ongoing losses (EPS: -$1.46), investors are betting on future growth and stable revenue from the CoreWeave deal.
📊 Next Earnings: July 24, 2025, will be a key date for updates and guidance.
StockTitan: Applied Digital Secures $7B AI Data Center Deal With CoreWeave
💹 Market Cap: Jumped to $2.26 billion, reflecting renewed investor confidence.
🔄 Volatility: The stock’s beta is 5.87, indicating high volatility typical of growth tech firms. APLD is now near its 1-year price target of $10.50.
🔍 Investor Focus: Despite ongoing losses (EPS: -$1.46), investors are betting on future growth and stable revenue from the CoreWeave deal.
📊 Next Earnings: July 24, 2025, will be a key date for updates and guidance.
🤖 The AI Infrastructure Boom: Why This Deal Matters
🤖 AI Cloud Demand: The explosion of generative AI, machine learning, and large language models is driving unprecedented demand for data center power and GPU compute.
🔌 Neoclouds: CoreWeave and similar firms are called “neoclouds,” specializing in AI workloads rather than general-purpose cloud services.
🏢 Real Estate Play: By leasing data center space to CoreWeave, Applied Digital locks in long-term, stable revenue and reduces risk.
💼 REIT Transition: The deal supports APLD’s strategy to become a data center REIT, focusing on mission-critical infrastructure for AI and HPC.
🚀 Competitive Edge: The premium revenue per MW shows the value of purpose-built AI infrastructure, a key differentiator in a crowded market.
GlobeNewswire: Full Press Release – Applied Digital & CoreWeave
🔌 Neoclouds: CoreWeave and similar firms are called “neoclouds,” specializing in AI workloads rather than general-purpose cloud services.
🏢 Real Estate Play: By leasing data center space to CoreWeave, Applied Digital locks in long-term, stable revenue and reduces risk.
💼 REIT Transition: The deal supports APLD’s strategy to become a data center REIT, focusing on mission-critical infrastructure for AI and HPC.
🚀 Competitive Edge: The premium revenue per MW shows the value of purpose-built AI infrastructure, a key differentiator in a crowded market.
🔬 Deal Details: What’s in the CoreWeave Lease?
🗄️ Capacity: 250MW of critical IT load at Ellendale, North Dakota—one of the largest AI data center deals in the US.
⏳ Term: 15 years, providing long-term revenue visibility.
➕ Expansion Option: CoreWeave can add 150MW, making the campus a scalable AI and HPC hub.
🧑💼 Leadership: CEO Wes Cummins emphasizes the partnership as a “game changer” for both companies.
📈 Financials: $7 billion in expected revenue over the lease term; premium pricing due to AI-specific infrastructure needs.
Economic Times: Deal Analysis & CEO Commentary
⏳ Term: 15 years, providing long-term revenue visibility.
➕ Expansion Option: CoreWeave can add 150MW, making the campus a scalable AI and HPC hub.
🧑💼 Leadership: CEO Wes Cummins emphasizes the partnership as a “game changer” for both companies.
📈 Financials: $7 billion in expected revenue over the lease term; premium pricing due to AI-specific infrastructure needs.
📊 APLD Financials, Stock History & Investor Perspective
💵 Market Cap: $2.26 billion (June 2025)
📉 EPS (TTM): -$1.46 (reflects ongoing losses)
📊 Beta: 5.87 (high volatility)
🎯 1-Year Target: $10.50 (stock is now near this level)
🗓️ Next Earnings: July 24, 2025
📈 Stock History: APLD has seen wild swings, with a 52-week high of $12.48 and a low of $3.44. The stock is up 32% YTD, reflecting renewed optimism.
🧑💻 Investor Take: High risk, high reward—investors are betting on Applied Digital’s ability to execute and scale in the AI infrastructure boom.
MacroTrends: Applied Digital Stock Price History & Financials
📉 EPS (TTM): -$1.46 (reflects ongoing losses)
📊 Beta: 5.87 (high volatility)
🎯 1-Year Target: $10.50 (stock is now near this level)
🗓️ Next Earnings: July 24, 2025
📈 Stock History: APLD has seen wild swings, with a 52-week high of $12.48 and a low of $3.44. The stock is up 32% YTD, reflecting renewed optimism.
🧑💻 Investor Take: High risk, high reward—investors are betting on Applied Digital’s ability to execute and scale in the AI infrastructure boom.
💡 FAQ: What Investors & Tech Watchers Want to Know
💡 FAQ:
GlobeNewswire: Official Applied Digital Press Release
- Why did APLD stock spike? The $7B, 15-year CoreWeave lease secures long-term revenue and positions APLD as a leader in AI data center infrastructure.
- Is APLD profitable? Not yet—current EPS is negative, but investors are focused on future growth and recurring revenue.
- What is CoreWeave? An AI cloud hyperscaler backed by Nvidia, specializing in GPU rental for AI workloads.
- Where is the data center? Ellendale, North Dakota, with expansion options for even more capacity.
- How risky is the stock? High volatility (beta 5.87), typical of growth tech and AI infrastructure plays.
- What’s next? Watch for Q2 earnings (July 24), execution of the lease, and broader AI infrastructure trends.
©️ 2025 | Applied Digital & CoreWeave AI Lease: Complete Guide for US Investors, Tech Watchers & AI Industry
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