Applied Digital (APLD) Jumps 11% as AI Wave Resumes

We recently published AI Frenzy: 10 Stocks Crushing the Market, 6 Climb to Fresh Highs. Applied Digital Corp. (NASDAQ:APLD) is one of the top performers on Wednesday.

Applied Digital climbed for a third straight day on Wednesday, adding 11.71 percent to end at $16.98 apiece as investor sentiment was boosted by an overall optimism for the artificial intelligence industry.

The company rallied alongside its counterparts, as investors piled funds into digital infrastructure players after Nebius Group, formerly focused on Bitcoin mining and now pivoting into AI hosting, has clinched an $18 billion cloud computing deal with technology giant Microsoft Corp. The deal underscored market appetite for scalable computing power.

For investors, placing bets in the industry could offer early exposure to a sector that is expected to boom in the future.

Late last month, Applied Digital Corp. (NASDAQ:APLD) finalized an expanded lease agreement with CoreWeave that could deliver the company as much as $11 billion in revenues.

The updated agreement now covers 400 MW of critical IT capacity across three long-term leases across Applied Digital Corp.’s (NASDAQ:APLD) purpose-built Polaris Forge 1 Campus in Ellendale, North Dakota.

“This…lease agreement with CoreWeave underpins our commitment to building the next generation of AI infrastructure right here in America’s heartland,” said Chairman and CEO Wes Cummins. “It also further reinforces the importance of North Dakota’s role in shaping the future of the digital economy and is another step in advancing its position as one of the most strategic destinations for AI in the world.”

While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.