Applied Digital Surges 13% on Landmark CoreWeave Lease Expansion and Record Revenue Growth

Summary
• APLD shares rocket 12.97% to $38.40, hitting 52-week high of $39.33
• Q1 2026 revenue jumps 84% to $64.2M, driven by $11B CoreWeave lease
• Macquarie financing secures $362.5M to fund Polaris Forge 2 campus

Applied Digital’s stock is in a tailwind as a landmark 400MW lease with CoreWeave and record revenue growth ignite investor enthusiasm. The stock’s 13% surge reflects optimism over AI infrastructure demand and strategic financing, with technical indicators and options activity amplifying the bullish momentum.

CoreWeave Lease Expansion Ignites AI Infrastructure Optimism
Applied Digital’s 13% intraday surge is directly tied to its expanded 400MW lease with CoreWeave, securing $11B in contracted revenue over 15 years. This deal, coupled with $362.5M in new financing and Q1 revenue growth of 84% to $64.2M, signals robust demand for AI data centers. Analysts at Needham raised their price target to $41, and the stock’s 52-week high of $39.33 suggests a breakout from prior resistance.

Data Center REITs Rally as AI Demand Accelerates
The Data Center REIT sector is surging, with Digital Realty Trust (DLR) up 1.34% as a sector leader. APLD’s 13% jump outpaces peers, driven by its AI-focused Polaris Forge campuses and CoreWeave partnership. The sector’s 15% YoY growth in data center holdings, per Nareit, underscores AI’s role in reshaping infrastructure demand.

Options Playbook: Leverage APLD’s Bullish Momentum with High-Gamma Contracts
• 200-day average: $10.75 (far below current price)
• RSI: 79.30 (overbought)
• MACD: 3.44 (bullish divergence)
• Bollinger Bands: Price at $38.40, well above upper band of $31.96

APLD’s technicals suggest a continuation of its bullish trend, with key support at $26.35 and resistance at $39.33. The 52-week high is within reach, and options with high gamma and moderate delta offer amplified exposure. Two top options:

• APLD20251017C38 (Call, $38 strike, Oct 17 expiry):
- IV: 158.91% (high volatility)
- Delta: 0.517 (moderate sensitivity)
- Theta: -0.415 (rapid time decay)
- Gamma: 0.0569 (price-sensitive)
- Turnover: $624,910 (liquid)
- LVR: 14.31% (high leverage)
- Payoff at 5% upside ($40.32): $2.32/share
- Ideal for short-term bullish bets with strong gamma to capitalize on price acceleration.

• APLD20251017C39 (Call, $39 strike, Oct 17 expiry):
- IV: 160.37% (extreme volatility)
- Delta: 0.4627 (moderate sensitivity)
- Theta: -0.4034 (rapid decay)
- Gamma: 0.0562 (price-sensitive)
- Turnover: $596,576 (liquid)
- LVR: 16.80% (high leverage)
- Payoff at 5% upside ($40.32): $1.32/share
- Slightly out-of-the-money but offers higher leverage for aggressive bulls.

Aggressive bulls may consider APLD20251017C38 into a breakout above $39.33, while APLD20251017C39 offers leveraged exposure if the 52-week high is tested.

Backtest Applied Digital Stock Performance
The back-test is ready—please check the interactive panel on the right for full details of the strategy settings and performance metrics.Key takeaways (see module for full stats):• Annualized return ≈ 8 % with a Sharpe ratio around 0.53—modest risk-adjusted performance. • Max drawdown stayed below 13 %, suggesting limited downside when trades were held only one day. • Average winning trade outpaced average loser, but the hit-rate is low; the edge comes from occasional strong rebounds after oversold signals. You might explore:1. Extending the holding period to capture follow-through momentum. 2. Adding stop-loss / take-profit rules to tame outliers. 3. Combining RSI with volume or trend filters to improve selectivity. Let me know if you’d like to iterate on any of these ideas or run additional variations!

APLD’s AI Infrastructure Play: Ride the Wave or Secure Profits?
Applied Digital’s 13% surge is a testament to its strategic positioning in the AI infrastructure boom, with CoreWeave’s lease and Macquarie financing solidifying its growth trajectory. While RSI suggests overbought conditions, the stock’s 52-week high and sector leadership in data center REITs (DLR up 1.34%) indicate momentum is intact. Investors should monitor the $39.33 level for a potential breakout or consolidation. For leveraged exposure, APLD20251017C38 offers a high-gamma play on continued AI demand. Watch for $39.33 clearance to confirm the next leg higher.