Applied Digital (APLD) Soars 103% on AI Hosting Deal With CoreWeave
Applied Digital (APLD, Financials) surged 103% last week after announcing a long-term hosting agreement with CoreWeave, an AI infrastructure firm backed by Nvidia (NVDA, Financials).
Warning! GuruFocus has detected 10 Warning Signs with APLD.
The deal, valued at $7 billion over 15 years, will see Applied lease space at its North Dakota facility to host CoreWeave's expanding AI compute stack. The move accelerates Applied's pivot deeper into AI data center infrastructure.
Shares closed Friday at $13.86, tripling over the past 12 months amid strong interest in AI-adjacent plays. Both Applied and CoreWeave count Nvidia as a key backer, linking them to the broader AI rally.
Technical analysts flagged a bullish cup-and-handle breakout, with price clearing key resistance last week. Volume confirmed the move, and momentum indicators show strength.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
From AI to aerospace: Europe's most innovative companies shaping tomorrow
What does innovation look like in 2025? From AI to blockbuster weight-loss drugs, Europe's forward-thinking companies punch above their weight. For the first time, Fortune analyzed the top companies across the continent in partnership with Statista to find the standouts that are driving progress with success. Patent data was provided by LexisNexis Intellectual Property Solutions. The list features 300 companies across 21 countries and 16 industries, and a total of 168 of the companies are on the Fortune 500 Europe. Companies on the list have brought in just under $8 trillion in annual revenue. The U.K. has more companies on our list than any other country, followed by Germany and Switzerland. The top sectors are finance, followed by retail and industrials. Companies on the list have brought in just under $8 trillion in annual revenue. The list features 300 companies across 21 countries and 16 industries, and a total of 168 of the companies are on the Fortune 500 Europe. Companies on the list have brought in just under $8 trillion in annual revenue. The U.K. has more companies on our list than any other country, followed by Germany and Switzerland. The top sectors are finance, followed by retail and industrials. L'Oréal was ranked at the top of the list in 2025. 'We are immensely proud to be recognized by Fortune as Europe's most innovative company,' Nicolas Hieronimus, Chief Executive Officer of L'Oréal told Fortune. 'This prestigious recognition reinforces our conviction that innovation, fueled by science, technology, and creativity, is the best way to succeed on the world stage, but is also a testament to the incredible talent and dedication of our teams around the globe.' We've highlighted some of the standout companies from this year's list driving innovation across Europe. Household products Noted for: Product innovation Employees: 50,000–99,999Fortune 500 Europe rank: 91France L'Oréal invests more than €1 billion annually in research and innovation and boasts a team of over 4,000 researchers. This, in turn, helps the French company formulate new ingredients and develop new products. Earlier this year, L'Oréal launched a device called Cell BioPrint that will give people a detailed assessment of their skin and the products best suited for it. 'This prestigious recognition reinforces our conviction that innovation, fueled by science, technology, and creativity, is the best way to succeed on the world stage…' Nicolas Hieronimus, CEO, L'Oréal Household products Product innovationEmployees: >100,000F500 Europe rank: 49U.K. Unilever's innovations take different shapes and forms—from fast-action laundry liquid to paper-cup instant noodles. The London-based company has 20,000 patents and a team of 5,000 experts who design new products, aided by nearly €1 billion in annual investments. Unilever has also expanded its AI use to help customers find the best products and discover new ones backed by scientific data. Health careProduct innovationEmployees: 50,000–99,999F500 Europe rank: 210Netherlands Founded in 1891, Royal Philips is known for pioneering innovations in lighting, health care, and consumer electronics. Key breakthroughs include the first compact audio cassette, electric razors, and mercury-free light bulbs. Today, Philips leads in sustainable, health–focused technology, improving billions of lives globally. Health careInnovation cultureEmployees: 50,000–99,999F500 Europe rank: 104U.K. GSK's innovations were reflected in its bottom line in 2024. With the help of its Silicon Valley veteran technology chief, Shobie Ramakrishnan, GSK is also using AI to speed drug discovery and streamline its supply chains. Health careInnovation cultureEmployees: 50,000–99,999F500 Europe rank: 116Denmark Novo Nordisk is wasting little time in developing new obesity treatments that, until recently, made it Europe's most valuable company. In May, the FDA accepted Novo's application to sell an oral version of Wegovy; an approval decision is expected in Q4. Novo Nordisk's recent trials for CagriSema, a new, more effective weight-loss medication, could increase its appeal beyond the millions already using its drugs. Health careProcess innovationEmployees: 50,000–99,999F500 Europe rank: 125Ireland In 2024, Medtronic invested more than $2.7 billion in R&D and operated over 81 manufacturing sites. AI is used to customize patient care, ranging from personalized brain therapy to data-driven diabetes care. The use of robotic-assisted surgery (RAS) also helps enhance precision and control. RetailingProduct innovationEmployees: >100,000F500 Europe rank: 144France Whether with Ray-Ban Meta glasses or its latest audio-enhancing eyewear, EssilorLuxottica is always pioneering new technology. Nearly 1,000 researchers across 50 R&D sites supported by up to €350 million in investment help the Franco-Italian company stay ahead of trends. The company is also vertically integrated, allowing for better quality control globally. Click here to view the full list. This story was originally featured on
Business Insider
37 minutes ago
- Business Insider
Why CoreWeave (CRWV) is the Best AI Stock You've Never Heard Of
Many investors may have overlooked one of the best-performing stocks in the U.S. right now: CoreWeave (CRWV). The AI cloud platform has hit the bullseye with its specialized GPU-powered cloud infrastructure, at just the right time, leading to a tripling of the stock price since March. Confident Investing Starts Here: Yet, the broader market continues to underestimate (and undervalue) the company's strategic role in the rapidly expanding AI infrastructure sector. While CoreWeave may not yet be widely recognized, it holds significant potential for those with a forward-looking perspective on the AI landscape. For investors seeking focused exposure to AI beyond the typical software offerings, CRWV may represent a compelling opportunity. An Under-the-Radar Hyperscaler with Genuine Traction CoreWeave was founded in 2017 by a team of entrepreneurs with backgrounds in both finance and technology. Initially focused on cryptocurrency mining, the company quietly pivoted in 2020 toward cloud infrastructure, making an early bet that GPU computing would become the foundation of the next wave of technological advancements. In April 2025, CoreWeave went public on the Nasdaq, raising approximately $1.5 billion and debuting with a market capitalization of nearly $23 billion. Since then, growth has remained robust. In FY2024, CoreWeave reported revenue of $1.92 billion, a more than 700% increase from $229 million in 2023. What sets CoreWeave apart is its native design for the AI era. Unlike legacy cloud providers such as Amazon Web Services (AMZN) or Microsoft Azure (MSFT), which were initially architected for general-purpose computing, storage, and web hosting, CoreWeave was purpose-built to handle the high-performance demands of AI model training and inference. It is not simply a GPU reseller; CoreWeave owns and operates its entire technology stack, including data centers, hardware, and proprietary orchestration software. This vertical integration enables it to exert a level of control over pricing, performance, and scalability that generalist cloud platforms struggle to match. While competitors such as Lambda Labs and Cerebras Systems (CBRS) are pursuing similar approaches, CoreWeave currently leads in both execution and enterprise adoption. Turning to snazzy PR stunts, including branded vehicles, has raised awareness and brand recognition. Top Investors Look Beyond Narratives to the Financials The financials are just as compelling as the technology. In FY2024, CoreWeave generated $1.92 billion in revenue with an impressive gross margin of 74%. On an adjusted EBITDA basis, the company reported $1.2 billion in profit, highlighting the underlying strength of its operations, despite recording a GAAP net loss of $863 million, primarily driven by substantial capital expenditures and debt servicing associated with its rapid expansion of infrastructure. This pattern is typical of capital-intensive businesses in the early stages of growth and expansion. Crucially, CoreWeave is not pursuing growth through unsustainable customer acquisition spending; instead, it is investing in building a durable, long-term foundation for AI computing infrastructure. Its ownership structure also indicates a stock that's in it for the long haul. CoreWeave is undoubtedly trading at a premium valuation. At the time of its IPO, the company was valued at approximately 12x trailing revenue, or closer to 15x on an enterprise value basis when accounting for debt. While these multiples may appear elevated, they are not out of line with other high-growth companies in the AI space. Firms such as Snowflake (SNOW) and Palantir (PLTR) have historically traded at comparable or even higher valuation levels, and private companies like Databricks are reportedly targeting similar or greater valuations in the private markets. If CoreWeave can maintain strong revenue growth in the range of 30–50% annually, there is a reasonable path for it to grow into its valuation. In my view, the primary risk lies more in operational execution than in the current valuation itself. Risks Don't Have to Be Deal Breakers No company experiencing rapid growth is without risk. One of the most notable concerns for CoreWeave is customer concentration. In 2024, Microsoft accounted for over 60% of the company's total revenue—a level of dependence that is far from ideal. On one hand, it reflects a strong vote of confidence from a leading technology firm, reinforcing CoreWeave's credibility and technical capabilities. On the other hand, it exposes the company to significant revenue risk should Microsoft decide to shift workloads back to its own Azure platform. Additionally, while CoreWeave recently signed a five-year, $11.9 billion agreement with OpenAI—offering some diversification—this new partnership does not fully mitigate the concentration risk. Sustained long-term success will depend on CoreWeave's ability to broaden its customer base and reduce reliance on a few large clients. Another significant risk is CoreWeave's substantial capital expenditure requirements. Building and scaling high-performance GPU clusters is inherently costly. To support this infrastructure expansion, CoreWeave has raised over $15 billion through a mix of equity financing and asset-backed lending. While the current returns appear strong, the model could be tested if AI demand slows or if access to capital becomes more constrained. Broader macroeconomic and geopolitical risks also loom large. For instance, any disruption in the semiconductor supply chain, particularly involving Taiwan, a key hub for advanced chip manufacturing, could delay GPU shipments and impact CoreWeave's operations. That said, while these risks are real, I view them as manageable and ultimately justified by the potential long-term upside. The AI Infrastructure Era Has Just Begun What makes CoreWeave particularly compelling is our early position in the broader AI infrastructure lifecycle. According to McKinsey, global data center demand for AI workloads is expected to grow at a compound annual rate of 20% through 2030. GPU-as-a-service—once a niche segment—is projected to become a $27 billion yearly revenue market by the end of the decade. CoreWeave is well-positioned at the forefront of this transformation, with its vertically integrated model offering the scalability and performance needed to meet surging demand. What is the Price Target for CRWV Stock? On Wall Street, CoreWeave has a consensus Moderate Buy rating based on seven Buys, five Holds, and zero Sells. However, the average CRWV price target is just $47.42, indicating a whopping 70% downside potential over the next 12 months. Clearly, Wall Street expects CRWV stock to give back some of its recent gains, so buying on the dip may be the best approach. I'm Staying Bullish and Watching Closely CoreWeave has delivered a triple-digit stock price gain to its current shareholders so far this year. However, its growth story is just beginning, given the early stages of the total addressable market CRWV is targeting. CoreWeave's strategic positioning is exceptionally strong, and the market it is targeting—AI infrastructure—is simply too large and too important to ignore. While the valuation is undoubtedly ambitious and the risks are real, the potential rewards are equally significant. Investing in CoreWeave offers exposure to the foundational layer of the emerging AI economy. This is not a speculative or hype-driven play; it's a high-growth, cash-generating business that stands to benefit from what may be the most transformative technology trend of the decade.
Wall Street Journal
39 minutes ago
- Wall Street Journal
A French Startup Wants to End Europe's Reliance on American AI Tools - Tech News Briefing
Two-year old French startup Mistral wants to show that European AI can compete with American and Chinese companies that dominate the industry. WSJ tech reporter Sam Schechner reports from the Viva Technology conference in Paris. Plus, the United Nations estimates half of all people on Earth experience severe water scarcity at least one month of the year. WSJ tech columnist Christopher Mims tells us about a 1960s-era technology that might hold a key to easing that problem. Sign up for the WSJ's free Technology newsletter.
