Applied Digital's Share Price Rises 11.4% Amid Optimism for Expanded CoreWeave Deal.

Applied Digital Corp. (NASDAQ:APLD) jumped 11.42% on Monday, driven by optimism for a billion-dollar revenue opportunity from its expanded collaboration with AI infrastructure giant CoreWeave Inc. (NASDAQ:CRWV). The company expects the expanded contract to rake in another $4 billion in revenues for a total of $11 billion. The first 100 MW facility is scheduled to be operational in Q4 2025, followed by a 150 MW capacity in mid-2026 and the third 150 MW in 2027.

Applied Digital Corp. (NASDAQ:APLD) experienced a significant 11.42% increase in its stock price on Monday, driven by optimism surrounding a billion-dollar revenue opportunity from its expanded collaboration with AI infrastructure giant CoreWeave Inc. (NASDAQ:CRWV). The company expects this expanded contract to contribute an additional $4 billion in revenues, bringing the total to $11 billion.

The collaboration involves Applied Digital adding 150 MW of critical IT load capacity to the existing 250 MW, effectively doubling the total capacity to 400 MW. The first 100 MW facility is scheduled to be operational in the fourth quarter of 2025, followed by a 150 MW capacity in mid-2026, and the third 150 MW in 2027.

In addition to the revenue projections, Applied Digital Corp. (NASDAQ:APLD) reported a narrowing of its net loss attributable to shareholders in the fourth quarter ending May 2025 by 16 percent to $53.9 million from $64.7 million in the same period last year. Total revenues increased by 41 percent to $38 million from $26.9 million year-on-year.

The recent surge in Applied Digital's stock price coincides with major partnerships and a significant leasing deal with CoreWeave Inc. (NASDAQ:CRWV), which could be worth USD 7 billion. These developments bolstered investor confidence amidst an optimistic market backdrop where tech stocks have generally thrived, buoyed by strong earnings from industry giants like Microsoft and Meta.

Over the past five years, Applied Digital's shares have experienced a very large total return of 8258.40%, a remarkable increase highlighting strong shareholder value creation. The stock's 89% quarterly surge aligns with analyst projections of a future price target of US$14.61, suggesting a bullish outlook. However, the current share price of US$10.03 results in a notable discount to this target, which may underscore potential growth opportunities and underlying risks that investors might weigh.

The article by Simply Wall St is general in nature and provides commentary based on historical data and analyst forecasts using an unbiased methodology. It is not intended to be financial advice and does not constitute a recommendation to buy or sell any stock. The analysis may not factor in the latest price-sensitive company announcements or qualitative material.

References:
[1] https://finance.yahoo.com/news/applied-digital-apld-jumps-11-163714492.html
[2] https://finance.yahoo.com/news/applied-digital-apld-reports-us-175412459.html