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Analysts praised the $7 billion lease deal, prompting bullish price target hikes and signaling strong AI-driven growth potential.
Shares of CoreWeave Inc. (CRWV) jumped 21% on Tuesday while Applied Digital Corp. (APLD) rallied over 2% following their lease-deal announcements with Wall Street analysts expressing optimism about the arrangement.
As per the terms of the deal, Applied Digital will supply 250 MW of power to CoreWeave’s AI and HPC systems in North Dakota under 15-year agreements, potentially generating $7 billion. An additional 150 MW option is also available.
H.C. Wainwright increased its price target on Applied Digital to $12 from $7 and reaffirmed a ‘Buy’ rating, as per TheFly.
In a note to investors, the brokerage stated that the partnership significantly changes Applied Digital’s expected revenue growth for 2026.
The initial 100 megawatts (MW) from CoreWeave is anticipated to be operational by late 2025, with an additional 150 MW coming online in mid-2026.
The research firm pointed to strong AI-driven demand, tangible progress at the Ellendale facility, and growing institutional backing as key reasons for maintaining its bullish outlook.
Meanwhile, Craig-Hallum boosted its price target on Applied Digital to $12 from $10 and maintained a ‘Buy’ rating on the stock.
The firm noted that Applied Digital’s agreement with CoreWeave firmly establishes its presence in the artificial intelligence sector.
Craig-Hallum added that it is now looking for further details on Applied’s debt strategy and updates regarding the 150 MW expansion option.
Citizens JMP increased its price target on Applied Digital to $18 from $12 while reiterating an ‘Outperform’ rating.
The brokerage stated that the stock’s positive reaction was anticipated, and the upward trend is likely to persist.
On Stocktwits, retail sentiment around Applied Digital remained in ‘ extremely bullish’ territory with extremely high message volume.
Applied Digital stock has gained over 36% in 2025 and more than doubled in the last 12 months.
Retail sentiment around CoreWeave remained in ‘bullish’ territory.
CoreWeave stock has tripled since its listing in March 2025.
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