Why Applied Digital Corporation (APLD) Skyrocketed On Monday

We recently published a list of These 10 Stocks Blew Past Expectations. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against other top-performing stocks on Monday.

Applied Digital saw its share prices increase by 48.46 percent on Monday to close at $10.14 apiece after clinching a $7-billion deal with CoreWeave.

In a statement, Applied Digital Corporation (NASDAQ:APLD) said that it entered into two 15-year lease agreements with CoreWeave, under which the former will deliver 250 megawatts of critical IT load to host CoreWeave’s artificial intelligence (AI) and high-performance computing (HPC) infrastructure at its Ellendale, North Dakota data center campus.

Why Applied Digital Corporation (APLD) Skyrocketed On Monday

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

Pursuant to the lease contracts, CoreWeave also retains the option to access an additional 150 MW of critical IT load at Ellendale, positioning the campus as a scalable hub for expanding AI and HPC workloads.

Applied Digital Corporation (NASDAQ:APLD) designed Ellendale for the speed and efficiency of deployment, prime location, AI-innovative design, and access to abundant, low-cost energy. It expects to deliver the first 100 MW of data center in the fourth quarter of the year, while the remaining 150 MW is expected to come online in the middle of 2026.

Overall, APLD ranks 2nd on our list of top-performing stocks on Monday. While we acknowledge the potential of APLD, 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 10,000x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.