Applied Digital Stock Surges After Major Deal with CoreWeave

NEW YORK, NY — Applied Digital‘s stock soared 29.6% during Wednesday’s trading session, closing at $13.60. This surge follows B. Riley‘s updated coverage, which significantly raised the company’s one-year price target from $8 to $15.

The rise in stock price comes after Applied Digital announced a major new contract with CoreWeave, a cloud services provider backed by Nvidia. The deal involves two 15-year lease agreements for providing data center and artificial intelligence processing hardware and services, potentially generating approximately $7 billion in revenue.

Before the market opened, B. Riley reiterated a buy rating on Applied Digital, further fueling investor confidence. With shares already up around 78% over the past week, investors are optimistic about the company’s future performance.

Wes Cummins, Chairman and CEO of Applied Digital, expressed confidence in the partnership, stating, “We believe these leases solidify Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing.”

As Applied Digital continues to restructure its operations, the CoreWeave deal provides a substantial revenue baseline. With the current market valuation near $3 billion, the secured $7 billion in sales positions the company favorably for growth in the booming AI market.

Industry analysts suggest that the deal may also attract other enterprise AI customers to Applied Digital’s services.