TLDR
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Applied Digital stock jumped 29% to $13.26 on a massive AI deal.
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CoreWeave will lease 250 MW of IT load at APLD’s North Dakota campus.
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The agreement is worth $7 billion over 15 years with annual escalators.
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Both firms are backed by Nvidia, linking them to the AI boom.
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APLD’s earnings are due between August 26 and September 1, 2025.
Applied Digital Corp. (NASDAQ: APLD) stock climbed 29.33% to $13.26 on Tuesday afternoon following the announcement of a major agreement with CoreWeave.
Applied Digital Corporation (APLD)
The $7 billion deal, spanning 15 years, involves leasing AI data center space to CoreWeave. This strategic move significantly expands Applied Digital’s footprint in advanced computing infrastructure.
The lease agreements are expected to generate stable and predictable rental income. Payments are fixed upfront with annual escalators, irrespective of construction costs. The market responded favorably, reflecting investor confidence in the long-term revenue potential.
Applied Digital just locked in a $7 billion, 15-year deal with CoreWeave for 250MW of AI data center capacity in North Dakota.
Ellendale is no longer just farmland—it’s the foundation of America’s AI infrastructure boom.$APLD $CRWV #AI pic.twitter.com/UoZuRQN7AM
— Juniorstocks.com (@Junior_Stocks) June 2, 2025
CoreWeave Collaboration
CoreWeave, which went public in March and saw its stock hit a record $130.76 in May, will deploy AI and high-performance computing hardware at Applied Digital’s newly constructed data center campus in Ellendale, North Dakota. Applied Digital will supply 250 megawatts of critical IT load across two leased blocks—100 MW and 150 MW—with an option for an additional 150 MW block.
The data center is designed to scale up to 400 MW, making it one of the most substantial AI-focused infrastructures in the region. This solidifies Applied Digital’s positioning as a key infrastructure provider in the AI ecosystem.
Nvidia-Backed Partnership
Both Applied Digital and CoreWeave have Nvidia among their major stakeholders. Nvidia, which is central to the AI chip industry, held 7.7 million shares in APLD and 24.2 million shares in CoreWeave as of March 31.
This Nvidia linkage boosts investor interest, given the chipmaker’s role in powering the most advanced AI models. CoreWeave offers AI clients access to data centers that run on Nvidia chips, further cementing the trio’s role in AI infrastructure development.
Stellar Stock Performance
Applied Digital’s recent returns showcase its momentum. Year-to-date, the stock has gained 71.27%, vastly outperforming the S&P 500’s 1.67% gain. Its one-year return is even more impressive at 207.88%. Over three and five years, APLD has returned 200.8% and 178.4%, respectively—again beating the broader market.
The company reported $53 million in revenue in its latest quarter. With the new $7 billion deal in place, investors are anticipating accelerated top-line growth.
Earnings Date Approaches
Investors will be watching closely for Applied Digital’s next earnings report, scheduled between August 26 and September 1, 2025. With the new lease agreements in play, guidance and execution updates will be crucial.
