Applied Digital Soars 11.42% on $11B CoreWeave Contract Expansion Trading Volume Hits 193rd Largest in U.S. Markets

On August 4, 2025, Applied Digital (APLD) surged 11.42% to $13.95, with a trading volume of $550 million, ranking 193rd among U.S. stocks. The rally followed a major contract expansion with CoreWeave, increasing their agreement to up to $11 billion in IT capacity over 15 years. This includes 400 MW of data center capacity in North Dakota, with the first 100 MW facility set for late 2025 and two additional phases by 2027. CEO Wes Cummins highlighted efficiency gains from rapid deployment timelines and sustainable infrastructure, including a PUE of 1.18.

The expanded agreement positions Applied Digital as a key player in AI infrastructure, with recurring revenue from long-term leases. Analysts note the deal’s scale could strengthen the company’s market position in high-performance computing, though execution risks and capital demands remain challenges. The campus’s strategic location in the Dakotas leverages low energy costs and renewable resources, aligning with growing demand for scalable, sustainable AI solutions.

Craig-Hallum upgraded APLD’s price target to $18 from $12, citing undervalued capacity and potential for a second North Dakota campus. Despite a recent 57% drop in trading volume, the stock’s 12-month revenue growth of 41.3% and 330% YTD return reflect strong investor sentiment. Institutional ownership rose in Q2, with hedge funds and retirement funds increasing stakes, signaling confidence in the company’s AI-focused expansion.

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