Applied Digital Powers Up with $7B AI Deal

Applied Digital Corporation (NASDAQ:APLD) stock grew by a whopping 50% after a 15-year deal was announced with CoreWeave, Inc. (NASDAQ:CRWV), an AI Hyperscaler.

Under these two long-term lease agreements, Applied Digital will supply 250 MW of essential IT load from its Ellendale, North Dakota, data center to enhance the latter’s AI capabilities and fuel high-performance computing (HPC) operations.

Applied Digital Powers Up with $7B AI Deal

An overhead view of a large-scale data center with rows of servers and blinking lights.

With estimates of around $7 billion in revenue for Applied Digital Corporation (NASDAQ:APLD), it’s no wonder the stock has been surging since the news came out. As the Chairman and CEO of Applied Digital believes, these agreements will establish the company as an essential player in the next generation of AI and HPC. Businesses associated with such sectors have the potential for substantial returns, given the growing demand.

The company’s Ellendale campus is all about speed, design, and energy saving. Constructed in a setting where cost-effective power is available and a naturally cool climate exists, the facility is built to meet the evolving AI demand.

Added to this ideal set-up is the company’s emphasis on developing scalable, secure, and sustainable data centers, positioning Applied Digital Corporation (NASDAQ:APLD) to power AI Factories and other computer-intensive activities efficiently.

While we acknowledge the potential of APLD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APLD and that has 100x upside potential, check out our report about this cheapest AI stock.

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