What Happened?
Shares of digital infrastructure provider Applied Digital (NASDAQ: APLD) jumped 1.9% in the morning session after the company continued to see positive momentum from major contracts announced earlier in the month for its artificial intelligence (AI) infrastructure business.
The stock's recent winning streak was fueled by expanded data center leases with cloud provider CoreWeave. These deals boosted Applied Digital's total contracted capacity to 400 megawatts and are expected to bring in about $11 billion in future lease revenue. This news highlighted the company's successful shift from crypto-focused data centers to what it calls “AI Factories.”
The move positions Applied Digital to capitalize on the high demand for high-performance computing for AI. Investors also noted the company's connection to major players in the space, including its place in Nvidia's AI investment portfolio. The strong stock performance pushed its price above the average analyst 12-month target, signaling the market's growing confidence in its AI-focused strategy.
After the initial pop the shares cooled down to $24.28, down 0.6% from previous close.
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What Is The Market Telling Us
Applied Digital’s shares are extremely volatile and have had 96 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 6.6% on the news that the stock extended its impressive winning streak, driven by positive momentum from recent major contracts in the artificial intelligence (AI) infrastructure space.
Applied Digital is up 211% since the beginning of the year, and at $24.28 per share, it is trading close to its 52-week high of $24.45 from September 2025. Investors who bought $1,000 worth of Applied Digital’s shares 5 years ago would now be looking at an investment worth $404,673.
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