Latest news with #Nvidia-backed
Yahoo
37 minutes ago
- Business
- Yahoo
A data-center stock is up more than 50% today after sealing a lucrative AI partnership
Shares of Applied Digital (APLD) 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. It closed 48% higher, at $10.14. The chart: This embedded content is not available in your region. 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. Read the original article on Business Insider 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
9 hours ago
- Business
- Yahoo
Why Applied Digital (APLD) Stock Is Trading Up Today
Shares of digital infrastructure provider Applied Digital (NASDAQ:APLD) jumped 51% in the afternoon session after it signed two long-term lease agreements for artificial intelligence data centers with Nvidia-backed AI hyperscaler CoreWeave. APLD is expected to deliver 250 megawatts (MW) of power for CoreWeave's AI and high-performance computing (HPC) infrastructure at its North Dakota data center campus. The bigger takeaway is financial: across the 15-year term, these contracts are expected to generate about $7 billion in revenue, providing significant long-term financial visibility for Applied Digital. The stock's reaction suggested investors viewed the deals as both a reliable new stream of recurring income and a clear signal that Applied Digital is well positioned in the rapidly expanding AI-data-center space. Is now the time to buy Applied Digital? Access our full analysis report here, it's free. Applied Digital's shares are extremely volatile and have had 117 moves greater than 5% over the last year. But moves this big are rare even for Applied Digital and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 30.8% on the news that the company reported weak first-quarter 2025 (fiscal Q3) results, which significantly missed Wall Street's sales expectations. A key issue was just how much money the company lost during the quarter as it burned through a lot more cash, given its poor profit margin. Now, to be fair, revenue did grow 22% from last year, mostly because cloud services sales grew over 200%. But the cloud business actually shrank compared to the previous quarter because they switched how they lease out GPUs. Hosting sales also dipped, exposing further challenges in that segment. Looking ahead, the company offered no definitive sales guidance and revealed plans to divest its Cloud Services unit, raising uncertainty about near-term growth. Additionally, tariff-related concerns cast doubt on the sourcing of components for the data center hosting business. Overall, this was a weak quarter, highlighting significant issues. Applied Digital is up 31.2% since the beginning of the year, and at $10.23 per share, it is trading close to its 52-week high of $10.68 from November 2024. Investors who bought $1,000 worth of Applied Digital's shares 5 years ago would now be looking at an investment worth $113,667. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. 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
11 hours ago
- Business
- Yahoo
Why Applied Digital (APLD) Stock Is Trading Up Today
Shares of digital infrastructure provider Applied Digital (NASDAQ:APLD) jumped 51% in the afternoon session after it signed two long-term lease agreements for artificial intelligence data centers with Nvidia-backed AI hyperscaler CoreWeave. APLD is expected to deliver 250 megawatts (MW) of power for CoreWeave's AI and high-performance computing (HPC) infrastructure at its North Dakota data center campus. The bigger takeaway is financial: across the 15-year term, these contracts are expected to generate about $7 billion in revenue, providing significant long-term financial visibility for Applied Digital. The stock's reaction suggested investors viewed the deals as both a reliable new stream of recurring income and a clear signal that Applied Digital is well positioned in the rapidly expanding AI-data-center space. Is now the time to buy Applied Digital? Access our full analysis report here, it's free. Applied Digital's shares are extremely volatile and have had 117 moves greater than 5% over the last year. But moves this big are rare even for Applied Digital and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 30.8% on the news that the company reported weak first-quarter 2025 (fiscal Q3) results, which significantly missed Wall Street's sales expectations. A key issue was just how much money the company lost during the quarter as it burned through a lot more cash, given its poor profit margin. Now, to be fair, revenue did grow 22% from last year, mostly because cloud services sales grew over 200%. But the cloud business actually shrank compared to the previous quarter because they switched how they lease out GPUs. Hosting sales also dipped, exposing further challenges in that segment. Looking ahead, the company offered no definitive sales guidance and revealed plans to divest its Cloud Services unit, raising uncertainty about near-term growth. Additionally, tariff-related concerns cast doubt on the sourcing of components for the data center hosting business. Overall, this was a weak quarter, highlighting significant issues. Applied Digital is up 31.2% since the beginning of the year, and at $10.23 per share, it is trading close to its 52-week high of $10.68 from November 2024. Investors who bought $1,000 worth of Applied Digital's shares 5 years ago would now be looking at an investment worth $113,667. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. 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
12 hours ago
- Business
- Business Insider
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.
CNBC
13 hours ago
- Business
- CNBC
Applied Digital shares rip 40% higher on CoreWeave AI lease agreement
Shares of Applied Digital rose more than 40% after the company said it signed two long-term lease agreements with CoreWeave for artificial intelligence data centers. Nvidia-backed CoreWeave climbed more than 7% following the announcement. Financial terms of the two agreements were not provided, but Applied Digital said it expects $7 billion in total revenue over the approximately 15-year period. "Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure," said Applied Digital CEO Wes Cummins in a release announcing the news. CoreWeave will provide AI and high-performance computing infrastructure for the Applied Digital data center campus in Ellendale, North Dakota, according to the release. Applied Digital will provide 250 megawatts of critical IT load for CoreWeave. The campus is designed to host 400 MW of load. CoreWeave shares have been on a tear over the past couple weeks, setting a record high of $130.76 on May 29. The company, which rents AI servers powered by Nvidia chips, started trading at $39 on March 28.
