Shares of Applied Digital (APLD) experienced a dramatic increase on Monday, June 2, 2025, surging by as much as 54% to an intraday high of $10.54. The stock ultimately closed 48% higher at $10.14.
This impressive jump follows the company’s announcement of a highly lucrative partnership within the booming Artificial Intelligence (AI) sector. The significant stock movement reflects strong investor confidence in the company’s strategic direction and its role in supporting the burgeoning AI infrastructure.
Landmark AI Partnership Drives Growth
The sharp rise in Applied Digital’s stock was directly triggered by news of a major agreement.
$7 Billion Lease Deal with CoreWeave
The AI data center operator announced two pivotal 15-year lease deals with CoreWeave, an AI cloud services firm that has received significant backing from Nvidia. These long-term agreements are projected to generate a staggering $7 billion in revenue for Applied Digital. This substantial figure underscores the scale and importance of the partnership for the company’s future financial outlook.
Providing Critical Data Center Capacity
Under the terms of the deal, CoreWeave will gain access to 250 megawatts of data center capacity from an Applied Digital campus located in North Dakota. Furthermore, the agreement includes an option for CoreWeave to secure an additional 150 megawatts of capacity. This ensures CoreWeave has ample infrastructure to support its demanding AI computing needs.
Wes Cummins, Chairman and CEO of Applied Digital, emphasized the significance of this deal, 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.”
Strategic Implications for Applied Digital
This partnership represents a monumental win for Applied Digital, aligning perfectly with its long-term corporate strategy.
Transition to Data Center REIT
Applied Digital is currently in the process of transforming itself into a data center real estate investment trust (REIT). This strategic shift positions the company to capitalize on the immense and growing demand for data center space. This demand is primarily driven by “AI hyperscalers,” major technology companies like Meta and Microsoft, as they aggressively pursue their ambitions within the rapidly expanding AI landscape.
Future Enterprise AI Opportunities
A note from Needham, cited by Bloomberg, suggests that this landmark deal could also pave the way for other enterprise AI customers to consider Applied Digital for their data center requirements. This opens up potential new avenues for growth and client acquisition.
The Needham note also speculates that OpenAI, the creator of ChatGPT, could be the ultimate end-customer of this lease agreement, given its reported $4 billion deal with CoreWeave last month. This potential connection further highlights the strategic importance and future potential of Applied Digital’s infrastructure for leading AI innovators.
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