Applied Digital Shares Surge After Major AI Deal Announcement

ELLENDALE, N.D. — Shares of Applied Digital soared last week after the company announced a significant partnership with CoreWeave, an AI infrastructure provider. The deal will involve hosting CoreWeave’s AI infrastructure at Applied Digital’s facility in Ellendale, which is expected to generate $7 billion in revenue over 15 years.

Applied Digital’s stock price jumped 103% last week, closing at $13.86 on Friday. Over the past year, the stock has more than tripled, reflecting growing expectations for the company to take advantage of the surging demand for AI technologies.

Many investors are now watching key technical levels on Applied Digital’s stock chart. A recent breakout from a price pattern could signal the beginning of a longer-term upward trend.

Market analysts noted that the rally occurred with significant volume, indicating robust buying interest among larger investors. A bullish momentum indicator suggests further upside potential, although it remains below its key threshold.

As the stock continues its ascent, investors should monitor three crucial price levels. If Applied Digital surpasses the $17 mark, it may face selling pressure near its April 2022 high.

Investors are also eyeing the potential for a rally to $28, particularly if the stock breaks above this overhead resistance level. Analysts employed a cup-and-handle chart pattern to project a target price of $46.70 based on this formation.

During possible pullbacks, the $10.50 level will be critical for investors. Those hesitant to chase breakouts may look for buying opportunities near the cup and handle pattern’s top trendline, which might serve as future support.

The author of this article does not hold any shares in Applied Digital as of publication date.