APLD stock (Applied Digital Corporation, NASDAQ: APLD) surged more than 100% this week as investor excitement peaked following two major developments: a game-changing partnership with CoreWeave, and a newly disclosed 5.5% ownership stake by the Nvidia-backed cloud firm.
The twin announcements are fueling a dramatic revaluation of Applied Digital’s role in the fast-expanding AI infrastructure sector.
Under the terms of the newly signed 15-year lease agreements, CoreWeave will lease 250 megawatts of high-performance data center capacity from Applied Digital’s Ellendale, North Dakota campus.
The deal is estimated to bring in $7 billion in revenue over the course of the agreement—positioning Applied Digital as a serious player in the generative AI and cloud infrastructure space.
As of March 31, 2025, Nvidia (NASDAQ: NVDA) holds substantial equity in both Applied Digital and CoreWeave, owning 7.7 million shares of APLD and over 24 million shares of CoreWeave. This dual investment by one of the world’s leading AI chipmakers signals strong institutional faith in Applied Digital’s long-term potential.
A Turning Point for Applied Digital
The partnership with CoreWeave and Nvidia’s backing serve as key validation points for Applied Digital’s evolving business model. Initially known for supporting crypto mining through sustainable energy-powered data centers, the company is now broadening its scope to include enterprise-grade AI workloads and cloud infrastructure.
The Ellendale facility, powered by renewable energy, offers a competitive edge at a time when ESG (Environmental, Social, and Governance) standards are reshaping infrastructure investing. By committing to energy-efficient AI hosting, Applied Digital appeals to both tech innovation and sustainability-focused investors.
What It Means for Investors
For retail investors, this surge isn’t just hype. The $7 billion lease revenue, combined with institutional confidence from Nvidia and CoreWeave, gives APLD a strong growth narrative heading into the second half of 2025.
Market watchers note that while the stock’s sharp rise may trigger short-term volatility or profit-taking, its long-term outlook is much more stable than other microcap tech plays.
Analysts are now closely watching how quickly Applied Digital can scale operations and fulfill its contractual obligations—key milestones that could justify even higher valuations in the future.
The company’s ability to deliver against these ambitious targets will determine whether it continues climbing or settles back into consolidation.
With surging demand for AI infrastructure and a clear pathway to multi-billion-dollar revenue, APLD stock has shifted from niche to noteworthy. The next phase will test whether Applied Digital can match investor expectations with execution. If successful, it could become one of the breakout infrastructure stories of the AI boom.