Why Applied Digital Corporation (APLD) Skyrocketed Today

We recently published a list of These 10 Stocks Are On Fire Right Now. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against other Wednesday’s best-performing stocks.

Applied Digital extended its winning streak to a third consecutive day on Wednesday, jumping 29.27 percent to end at $13.25 apiece after an investment firm markedly raised its price target for the company.

B. Riley gave Applied Digital Corporation (NASDAQ:APLD) a “buy” recommendation and a new price target of $15, nearly double the $8 price target previously.

Why Applied Digital Corporation (APLD) Skyrocketed Today?

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

The bullish outlook followed Applied Digital Corporation’s (NASDAQ:APLD) $7-billion lease agreement with CoreWeave, Inc. (NASDAQ:CRWV).

Under the agreement covering two 15-year leases, Applied Digital Corporation (NASDAQ:APLD) will deliver 250 megawatts of critical IT load to host CoreWeave, Inc.’s (NASDAQ:CRWV) artificial intelligence (AI) and high-performance computing (HPC) infrastructure at its Ellendale, North Dakota data center campus.

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 1st on our list of Wednesday’s best-performing stocks. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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