Applied Digital Corp (NASDAQ:APLD) shares are trading higher again on Tuesday on what appears to be continued momentum following the company’s deal with CoreWeave Inc (NASDAQ:CRWV). Multiple analysts lifted price targets on the stock following the announcement.
What Happened: Applied Digital signed two approximately 15-year lease agreements with AI hyperscaler CoreWeave on Monday to provide 250 megawatts (MW) of critical IT load at its data center site in North Dakota.
CoreWeave holds an option to expand capacity by an additional 150 MW, bringing the total potential load to 400 MW. Applied Digital said it expects to generate approximately $7 billion in revenue over the contract period.
Applied Digital expects the first 100 MW data center to be ready for service in the fourth quarter of 2025. The second 150 MW data center facility is currently under construction and is expected to be ready for service in mid-2026. A third optional 150 MW data center is in the planning stages and would be ready for service in 2027. Applied Digital noted that it could expand the campus to up to one gigawatt of total power capacity to support additional infrastructure development.
“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,” said Wes Cummins, chairman and CEO of Applied Digital.
Applied Digital shares closed Monday up 48.5% at $10.14, according to Benzinga Pro. The stock is continuing to move higher on Tuesday. Needham maintained a Buy rating and raised the price target from $10 to $12, and HC Wainwright & Co. maintained a Buy and lifted its price target from $7 to $12.
It’s also worth noting that Applied Digital filed a mixed securities shelf registration and secondary offering related to the resale from time to time of up to 39.7 million shares by selling stockholders following the strong surge in shares.
APLD Price Action: Applied Digital shares were up 8.29% Tuesday, trading at $10.97 at the time of publication. Applied Digital has a 52-week high of $12.48 and a 52-week low of $3.01, according to Benzinga Pro.
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