Applied Digital's AI Infrastructure Gambit Drives 5.5% Stock Surge and $11B Windfall

Applied Digital (NASDAQ: APLD) shares surged over 5.5% in premarket trading on July 2, 2025, driven by a landmark 15-year lease agreement with CoreWeave, an AI hyperscaler, to supply 250 megawatts (MW) of capacity at its North Dakota data center campus. The deal, which includes an option for an additional 150 MW, is projected to generate $11 billion in revenue over its term, positioning the company as a key player in AI infrastructure. The agreement, finalized in May 2025, was expanded in August 2025 to include a third 150 MW facility, bringing total contracted capacity to 400 MW Applied Digital Finalizes Additional 150MW Lease with CoreWeave^[5].

The lease aligns with Applied Digital's strategic pivot toward AI and high-performance computing (HPC) infrastructure. The Polaris Forge 1 campus, where the leases are based, is engineered to scale up to 1 gigawatt and leverages North Dakota's low-cost, renewable energy resources. CEO Wes Cummins described the deal as a "defining moment," emphasizing the campus's role as a "launchpad for the future of AI infrastructure" Applied Digital Finalizes Additional 150MW Lease with^[6]. The first 100 MW facility is slated for service in Q4 2025, with subsequent phases expected to be operational by mid-2026 and 2027 Applied Digital Finalizes Additional 150MW Lease with CoreWeave^[5].

Analyst optimism has further fueled the stock's momentum. B. Riley upgraded its price target from $8 to $15 in June 2025, while HC Wainwright and Needham raised targets to $15 and $16, respectively, in August 2025. These adjustments reflect confidence in the company's ability to capitalize on AI-driven demand and execute its expansion plans APLD Shares Skyrocket: What’s Driving the Surge?^[2]. MarketBeat reported a consensus "Buy" rating from 13 analysts, with an average price target of $15.64, indicating a 2.87% upside from the current price Applied Digital (APLD) Stock Forecast and Price Target 2025^[3].

Financial performance also bolstered investor sentiment. In Q4 2025, Applied Digital reported revenue of $38 million, exceeding estimates of $37.12 million, while reporting an adjusted EPS loss of $0.03, significantly better than the anticipated $0.16 Why Applied Digital Is Soaring Over 35% Right Now^[4]. The company raised $270 million post-quarter to support project financing, signaling strong capital access amid its rapid growth trajectory.

The stock's surge follows a 48.5% rally in the previous session, driven by CoreWeave's 5.5% stake in Applied Digital and the announcement of the lease agreements. Timothy Sykes, a penny stock expert, highlighted the strategic alignment between the two companies, noting that the partnerships reflect "meticulous strategizing and astute leverage of market opportunities" APLD Shares Skyrocket: What’s Driving the Surge?^[2].