A data-center stock is up more than 50% today after sealing a lucrative AI partnership
Shares of Applied Digital surged as much as 54% on Monday.
The data-center operator announced a lease deal with Nvidia-backed AI firm CoreWeave.
The 15-year agreement is expected to generate $7 billion of revenue for Applied Digital.
The move: Applied Digital Corporation stock surged as much as 54% on Monday to an intraday high of $10.54.
The chart:
Why: Shares of the AI data center operator soared on the announcement of two 15-year lease deals with CoreWeave that will generate $7 billion in revenue for Applied Digital.
Under the terms of the deal, CoreWeave, a cloud services firm that's been backed by Nvidia, will receive 250 megawatts of data center capacity from an Applied Digital campus in North Dakota, with the option for CoreWeave to access another 150 megawatts.
"We believe these leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," said Wes Cummins, Chairman and CEO of Applied Digital.
What it means: The deal is a massive win for Applied Digital, which is in the process of converting itself into a data center real estate investment trust. Data centers are seeing massive demand from the so-called AI hyperscalers, like Meta and Microsoft, as they pursue their ambitions in the booming space.
A note from Needham, cited by Bloomberg, said that the deal could also pave the way for other enterprise AI customers to turn to Applied Digital for their data center needs. The note also said OpenAI could be the end customer of the lease agreement, given the ChatGPT creator's $4 billion deal with CoreWeave last month.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
Why the S&P 500 Still Looks Like a Smart Bet
The S&P 500 soared over the past two years, but the benchmark struggled in recent months. The index is made up of the companies -- across industries -- driving the economy of the times. 10 stocks we like better than Vanguard S&P 500 ETF › The S&P 500 (SNPINDEX: ^GSPC) was a surefire winner for investors over the past two years -- it roared higher through a bull market, advancing 24% and 23%, respectively, in 2023 and 2024. But in recent months, the benchmark's performance soured, and the S&P 500 even briefly entered bear territory back in April. The reason for such a turnaround after two strong years: Investors worried that President Donald Trump's plan to roll out tariffs on imports could result in a surge in prices -- and that could weigh on companies' costs and the consumer. As a result, corporate earnings and the general economy might suffer. Such a slowdown would represent bad news for high-growth companies that led last year's market gains -- like artificial intelligence (AI) giants Nvidia and Palantir Technologies. Growth players rely on consumer and corporate spending as well as favorable borrowing conditions to expand, so any signs of economic weakness hurt demand for their shares. All this dragged down the S&P 500, which fell as much as 15% from the start of the year through its low point in April. But I see any low points for the S&P 500 and many of its top-quality stocks as a buying opportunity -- and even buying the index at a high may deliver fantastic returns over time. Let's zoom in and consider why this index still looks like a smart bet. So first, it's important to note that since its low, the S&P 500 has rebounded on positive news such as an initial trade deal between the U.S. and China and strong capital spending forecasts from tech market giants, including Meta Platforms and Alphabet. This is great near-term news, allowing the index to gather some momentum, but when considering an investment in the S&P 500, it's key to take a long-term view. The reason for this is twofold. First, in general, investing over a period of at least five years is more likely to result in a win than buying and selling an asset within a few days or weeks. It's very difficult to time the market and get in at a low point and exit at one of the highest points. It's much easier to buy shares of a company, for example, when that player looks well positioned to excel over time -- and then hold on to the stock as the company grows and meets certain milestones. Data supports the idea of long-term investing, too: A look at the S&P 500 over time shows only 6% of 10-year investing periods resulted in negative outcomes, according to Capital Group. That's compared to 27% for one-year investing periods. Second -- and this is a big reason why the S&P 500 still looks like a smart bet -- the index has shown itself to be a solid long-term investment. Since its launch as a 500-company index in the late 1950s, the S&P 500 has delivered an annual average return of 10%. So history suggests an investment in the index today, if held for a number of years, is very likely to result in a win for you. Now, let's talk about why the index has been so successful. It's simple: The S&P 500 tracks the performances of the biggest companies driving the day's economy -- since this benchmark regularly admits and deletes members, if you're invested in it, you're guaranteed exposure to the most relevant companies of the time. So, your next question may be: What's the best way to invest in the S&P 500? And that's through buying a fund that tracks the index, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO). You can pick up shares of this exchange-traded fund (ETF) as you would a stock, since it trades daily on the market, and its expense ratio of 0.03% means costs won't chip away at your returns over time. The Vanguard S&P 500 ETF, and other similar S&P 500 funds, mimic the composition of the index, and as a result, they mimic its performance too. Today, technology stocks are the most heavily weighted, representing 30% of the fund and the index, and Apple, Microsoft, and Nvidia are the three biggest holdings. But the fund also includes 10 other industries, ensuring diversification. So, by investing in such an asset, you can easily place a bet on the S&P 500 -- and hold on for the long term to benefit from the development and growth of the country's best companies across industries. Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why the S&P 500 Still Looks Like a Smart Bet was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Asian stocks rise, dollar wobbles as trade uncertainty persists
By Ankur Banerjee SINGAPORE (Reuters) -Asian equities rose on Wednesday lifted by technology shares and the dollar drifted as higher U.S. duties on steel and aluminium took effect, marking the latest chapter in the trade war that has rattled the markets for much of the year. Investor focus has been on the pace of trade negotiations and the lack of significant progress. Wednesday is the deadline for U.S. trading partners to submit their proposals for deals that might help them avoid Trump's hefty "Liberation Day" tariffs from taking effect in five weeks. European stock futures pointed to a higher open as the European Central Bank kicks off its two-day policy meeting where it is expected to cut rates on Thursday. In Asia, South Korea's stocks and its currency surged as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus, market reforms and easing policy uncertainty. The benchmark KOSPI jumped more than 2% to its highest since August 2024. That left the MSCI's broadest index of Asia-Pacific shares outside Japan nearly 1% higher. Japan's Nikkei rose 0.8%, while Taiwan stocks jumped 2% after artificial intelligence behemoth Nvidia boosted U.S. stocks on Tuesday. [.N] Data showed U.S. job openings increased in April, but layoffs picked up, indicating a slowing labour market as tariffs impact the economic outlook. Investor attention has been on a possible call between U.S. President Donald Trump and Chinese leader Xi Jinping sometime this week as tensions between the world's top two economies simmer. Trump on Friday accused China of violating a Geneva agreement to roll back tariffs and trade restrictions. Beijing said it would safeguard its interests and that the accusation was groundless. Chinese stocks rose on Wednesday with the blue chip index up 0.58%, while Hong Kong's Hang Seng index rose 0.56%. "Markets may be desensitized to trade headlines, but Trump-Xi talks remain in focus. A grand deal looks unlikely, yet any escalation could still spark a bout of risk aversion," said Charu Chanana, chief investment strategist at Saxo in Singapore. Meanwhile, Trump signed an executive proclamation putting into effect from Wednesday his surprise announcement last week that he was taking the tariffs on steel and aluminium imports that had been in place since March to 50% from 25%. "We believe that the steel & aluminium tariffs are an exemplar of other strategic tariffs that are coming and likely to 'stick'," said Thierry Wizman, global FX & rates strategist at Macquarie. "With that, there's still little impetus for a U.S. dollar rally to take hold." DOLLAR WEAKNESS The on-again-off-again tariffs from Trump have led to investors fleeing U.S. assets looking for safe havens, including gold and other currencies, this year as they expect trade uncertainties to take a toll on the global economy. The Organisation for Economic Cooperation and Development said the global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, trimming its estimates from March, mainly on the fallout from the Trump administration's trade war. The dollar on Wednesday edged 0.18% higher against the yen at 144.225. The euro was flat at $1.1368. The dollar index, which measures the U.S. unit versus six other major currencies, was at 99.31, not far from the six-week low of 98.58 touched on Monday. The index is down 8.5% this year. In commodities, oil prices eased, weighed down by a loosening supply-demand balance following increasing OPEC+ output and lingering concerns over the global economic outlook due to tariff tensions. [O/R] Brent crude futures dipped 0.38% to $65.38 a barrel while U.S. West Texas Intermediate crude was at $63.15 per barrel, down 0.41%. Gold was little changed at $3,351.5 per ounce, taking its gains for the year to an eye-popping 28% on safe-haven flows. [GOL/] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
an hour ago
- Business Insider
Why the world's largest contract chipmaker isn't concerned about AI chip competition
As competition heats up in the AI chip race for graphic processing units and application-specific integrated circuits, Taiwan Semiconductor Manufacturing Company isn't bothered. As the world's largest contract chipmaker, it makes them all, said CEO CC Wei. "I look left and right, and no matter how I look at it, the orders are all from TSMC," Wei told local media on Tuesday after a shareholder meeting in the northern Taiwanese city of Hsinchu. Last month, TSMC reported a 42% rise in the first quarter revenue from a year ago. It was the chip giant's fastest pace of growth since 2022. Instead of competitors, it's the indirect impact of President Donald Trump's tariffs that concerns TSMC's CEO. "Tariffs have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters," Wei said. However, tariffs can lead to slightly higher inflation, which may damp end demand and impact TSMC. "I am not afraid of anything. I am only afraid of the global economy slowing," he said. Even so, demand for AI chips has been robust and outpacing supply, he said. In March, TSMC announced an additional $100 billion investment in the US to boost American chipmaking. Wei said TSMC expects the company's revenue to grow in the mid-20% range this year, with a "record profit" even amid the tariff uncertainty and a recent sharp rise in the Taiwan dollar, which would weigh on its gross margin. The tech sector's demand for AI has been strong, as evidenced by Nvidia's first-quarter earnings report last week. The tech titan's revenue beat Wall Street's expectations even amid US export restrictions on China's chip sales. Nvidia's share price is up 5.2% so far this year after surging nearly 25% over the last month alone. However, TSMC's share prices have been weighed down by macroeconomic and tariff concerns. The Taiwan-listed stock is down about 8% this year. TSMC American Depositary Receipts are little changed this year.
