"What really transformed Applied Digital's outlook was its contract with CoreWeave, an AI cloud provider. The multi-year agreement, reportedly valued at up to $11 billion, positioned the company as a key infrastructure partner in one of the fastest-growing segments of the tech industry. As Lee said, "When you get a big order from somebody like CoreWeave, then you're looking good.""
"A Stock That Soared from $5 to $40 We initially recommended APLD when it traded around $5. It climbed steadily through the spring and hit $40 earlier this week, an eightfold increase. Lee noted that the stock has faced short-term selling pressure near that milestone and some sympathy declines alongside Bitcoin, even though crypto now plays a minimal role in Applied Digital's business."
Applied Digital shifted its business away from volatile crypto mining to build high-performance data centers optimized for AI workloads as enterprise AI demand accelerated. The company secured a multiyear contract with CoreWeave reportedly worth up to $11 billion, positioning it as an important infrastructure partner in a rapidly growing market. The stock rose from roughly $5 to $40, representing an eightfold gain after earlier recommendations. The share price experienced short-term selling near the milestone and some declines correlated with Bitcoin despite crypto contributing minimally to current operations. The strategy reflects pursuit of credible opportunities with sustainable growth catalysts rather than speculative bets.
Read at 24/7 Wall St.
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