Applied Digital (APLD) Stock: Wall Street Scrambles as Shares Rocket 78% in One Week

TLDR

Table of Contents

Applied Digital stock jumped 29.6% Wednesday after B. Riley nearly doubled its price target from $8 to $15
The company secured a massive 15-year deal with CoreWeave worth approximately $7 billion in revenue
Stock has surged 78% over the past week following the CoreWeave partnership announcement
Applied Digital will provide data center and AI processing hardware through two lease agreements
The deals establish a strong revenue foundation for the $3 billion valued company

Applied Digital stock continues its explosive run as Wall Street analysts scramble to catch up with the data center company’s rapid transformation. The stock closed Wednesday up 29.6%, marking another day of massive gains for shareholders.

B. Riley kicked off the latest rally by dramatically raising its one-year price target. The investment firm bumped its forecast from $8 per share to $15 per share. That represents an 87.5% increase in the bank’s expectations.

The upgrade came after Applied Digital announced its game-changing partnership with CoreWeave earlier this week. The deal involves two separate 15-year lease agreements that could reshape the company’s future.

Under the agreements, Applied Digital will supply data center infrastructure and artificial intelligence processing capabilities. The company expects to generate roughly $7 billion in revenue from these contracts over the 15-year period.

CoreWeave Deal Changes Everything

The CoreWeave partnership represents a massive shift for Applied Digital’s business model. Previously known primarily for cryptocurrency mining operations, the company is now positioning itself as a major player in AI infrastructure.

Applied Digital $APLD Signs $7 Billion Data Center Leases With CoreWeave $CRWV: Applied Digital (APLD) secured two datacenter leases with CoreWeave totaling $7 billion over 15 years for its Ellendale campus. Simultaneously, APLD granted CoreWeave warrants for over 13 million… pic.twitter.com/YIzaa7SU1P
— BOLLWERK AI (@BollwerkAI) June 2, 2025

The $7 billion revenue commitment provides substantial visibility into future cash flows. For a company currently valued at approximately $3 billion, having that much contracted revenue creates a solid foundation for growth.

CoreWeave’s endorsement also carries weight in the industry. The cloud computing company has established itself as a key provider of GPU-powered infrastructure for AI workloads.

Applied Digital’s stock has responded accordingly. The shares have gained 78% over just the past week of trading. Wednesday’s 29.6% jump added to Tuesday’s gains and Monday’s initial surge following the deal announcement.

The company operates sustainable data centers with a focus on renewable energy sources. This environmental approach has become increasingly important as data center demand explodes.

Wall Street Takes Notice

B. Riley’s massive price target increase reflects the potential impact of the CoreWeave deals. At Wednesday’s closing price, the stock would need to rise another 13% to reach the firm’s new $15 target.

The analyst upgrade suggests institutional investors are starting to recognize Applied Digital’s transformation. The company is moving beyond pure cryptocurrency mining into broader digital infrastructure services.

Applied Digital’s business restructuring efforts are gaining traction. The CoreWeave partnership validates the company’s strategy of expanding into AI and cloud computing infrastructure.

The deals also provide geographic diversification for Applied Digital’s operations. The company can now serve enterprise customers beyond its traditional crypto mining business.

Revenue from the CoreWeave agreements will be spread over 15 years. This creates predictable cash flows that should help stabilize the company’s financial performance.

Applied Digital’s focus on sustainable energy sources aligns with growing demand for environmentally responsible data center operations. Many large technology companies are prioritizing green energy in their infrastructure decisions.

The company’s existing cryptocurrency mining operations continue alongside the new AI infrastructure business. This diversification could help reduce volatility in the company’s revenue streams.

Applied Digital expects the CoreWeave agreements to begin generating revenue in the near term. The company is working to deliver the required infrastructure and services to meet its contractual obligations.

B. Riley maintained its buy rating on Applied Digital stock following the price target increase. The firm cited the substantial contracted revenue and CoreWeave’s industry credibility as key factors supporting the upgrade.

Applied Digital announced the CoreWeave partnership on Monday, with the stock gaining momentum throughout the week as investors digested the deal’s implications.

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