Applied Digital (NASDAQ: APLD) experienced significant growth early in June 2025, as its price jumped over 45% within one day. After Nvidia and CoreWeave announced a huge 15-year lease for data centers, and the stock price dramatically increased. This choice has allowed Applied Digital to compete with top companies in the AI and high-performance computing data center field.
A Game-Changing Deal with CoreWeave
Applied Digital’s agreements with CoreWeave, which would earn them up to $7 billion over 15 years, were the reason for the increased demand. What these leases mean is that Applied Digital is concentrating more on acting as a key infrastructure provider for new AI jobs. CoreWeave, which offers GPUs from Nvidia to developers and enterprises, is growing quickly, and this deal reinforces Applied Digital’s position as a key partner in running such systems.
Wes Cummins explained that the deal supports Applied Digital’s role as an emerging provider of infrastructure important for the growth of AI and high-performance computing. Because of that suggestion, investors got excited and began to make new financial decisions.
Massive Trading Volume Reflects Strong Interest
When the announcement was made, investors felt very enthusiastic. The price of APDL’s stock rose intraday to $10.09, reaching a new high after ending the preceding session at $6.83. By mid-morning, online trading volume hit 127 million, which is four times greater than its daily average. The increase in trade displays how enthusiastic investors are about the deal and how confident they are in Applied Digital’s future.
At the beginning of the day, the stock was priced at $8.27, moved around a lot, and reflected great demand as well as strong volatility. With a current market capitalization of approximately $2.26 billion, Applied Digital is now being closely watched by institutional investors, traders, and analysts alike.
Financials, Volatility, and Future Outlook
Other investors seem more interested in the company’s future growth, because its trailing twelve-month EPS is negative at -1.46. Since Applied Digital has not made a profit, it does not have a price-to-earnings (P/E) ratio so far, but analysts hope that the CoreWeave agreement will be a game-changer.
The high beta of 5.87 points out that the company’s stock is more volatile than average in the market. Such risks exist, but it also opens up the chance for bigger gains if things are favorable. According to APLD’s price targets, the stock could trade at $10.50 by mid-2023, and it is now at that level.
Positioning as a Data Center REIT
Thanks to this lease agreement, Applied Digital now aims to be classified as a REIT and sees its top-line numbers improve as a result. The company hopes that leasing its infrastructure to CoreWeave will help it have steady income and less dependence on trends in hardware.
The forthcoming July 24 earnings call will show investors how the company is planning for its future growth and meeting its lease demands. They will also care about identifying more extended contracts and teams joining the crowded AI space.
Conclusion: A Stock to Watch
The quick growth of Applied Digital highlights that many investors are eager to put money into AI-based infrastructure businesses. Although the company’s main features are developing, the CoreWeave deal provides APLD with a stable basis for the future. The sharp increase in the stock’s value represents a belief that AI will grow and hopes that Applied Digital will play a major part.
