Applied Digital Corporation’s Stock Surges Amid Strategic Partnerships

ELLENDALE, N.D. — Applied Digital Corporation (NASDAQ: APLD) has experienced a remarkable rise in its stock price, closing at $10.91 on July 20, 2025. This uptick follows a series of strategic partnerships and financial agreements that have sparked investor interest.

The company’s stock rose past $10.50, marking an 8.45% increase for the day, a significant change from its earlier performance this year. On April 15, the stock closed at $3.44 and has since seen substantial growth amid key developments, notably a long-term lease with CoreWeave, a cloud provider specializing in artificial intelligence (AI) and high-performance computing (HPC).

Under the agreement, Applied Digital will supply 250 megawatts of critical IT load to CoreWeave’s data center in Ellendale. This deal is expected to generate approximately $7 billion over a 15-year term, a figure that has drawn attention from investors keen on the company’s prospects.

Additionally, on April 14, Applied Digital secured a $150 million convertible preferred equity facility aimed at accelerating the development of its Ellendale HPC data center. This financial strategy showcases the company’s commitment to expanding its infrastructure and capabilities.

Despite the recent stock surge of 17%, analysts caution that Applied Digital remains unprofitable, grappling with cash flow challenges due to high depreciation and capital expenditures. While the company enjoys a positive sentiment and has been called a potential disruptor in the $9 trillion digital identity market, many analysts recommend a ‘hold’ rating, citing concerns over elevated price-to-sales ratios.

Investors are advised to monitor the company’s execution closely in the coming quarters, as its rapid growth potential is paired with ongoing risks related to profitability and cash burn. Retail investors are urged to navigate the market with mindfulness of the company’s financial performance and potential for long-term success.