Applied Digital: CoreWeave's AI Deal Lights a $7 Billion Fuse

Core Viewpoint - Applied Digital Corporation has experienced a significant stock price surge, driven by a major long-term agreement with CoreWeave, positioning the company prominently in the expanding AI sector [1][2][11] Business Agreement Details - The partnership with CoreWeave involves leasing 250 megawatts (MW) of power capacity at Applied Digital's datacenter campus in Ellendale, North Dakota, under two lease agreements lasting approximately 15 years [5] - This deal is projected to generate about $7 billion in total revenue over the lease terms, marking a transformative financial opportunity for Applied Digital [5] Market Reaction - On June 2, 2025, Applied Digital's stock closed at $10.14 per share, reflecting an increase of $3.31, or 48.46%, in a single day, with trading volume reaching approximately 238.54 million shares, significantly above the average [6] - There was a notable increase in call options activity, indicating strong investor sentiment regarding the stock's future price increase [7] Strategic Positioning - The agreement with CoreWeave aligns with Applied Digital's strategic shift towards developing advanced data centers tailored for AI and high-performance computing (HPC) [8][10] - The Ellendale campus is designed to meet the growing demand for AI-specific data center space, driven by advancements in machine learning and large language models [9][10] Future Outlook - The CoreWeave deal enhances Applied Digital's credibility in the AI infrastructure market and signals a promising phase with clearer long-term revenue potential [10][11]