Investment firm B. Riley said the CoreWeave lease contracts strengthen Applied Digital’s appeal as a leading provider of high-performance compute infrastructure.
Applied Digital Corp. (APLD) stock is on track to extend its winning streak to a fourth straight session after CoreWeave, Inc. (CRWV) disclosed an over 5% stake in the digital infrastructure solutions provider.
Applied Digital shares ended Wednesday’s session up over 29% amid follow-through buying.
The recent uptrend began Monday when the company announced two 15-year lease agreements with CoreWeave to host the latter’s North Dakota data center campus.
Applied Digital is expected to earn $7 billion from the lease deal.
The stock rose an incremental 9.28% in Wednesday’s after-hours session, with some of the buoyancy stemming from a 13G filing that revealed that CoreWeave has a 5.5% stake (13.06 million shares) in Applied Digital.
Since the CoreWeave contract, Applied Digital stock has posted a cumulative gain of 94%.
On Wednesday, brokerage firm B. Riley raised its price target for the stock to $15 from $18, while maintaining a Buy rating, Fly reported. The firm anticipates further upside potential as CoreWeave's option for an additional 150 megawatt (MW) of capacity could serve as a catalyst over the next few months.
The CoreWeave lease contracts further affirmed Applied Digital’s ability to become a leading provider of high-performance compute infrastructure, the firm added.
On Stocktwits, retail sentiment toward Applied Digital stock stayed ‘extremely bullish’ (95/100) by late Wednesday, with the message volume at ‘extremely high’ levels.
The stock was the top-trending ticker on the platform early Thursday and among the top five active tickers.
A bullish watcher said the stock looks good, as they see $17 as the next stop en route to a new high.
Another user expects shorts to get squeezed out on Wednesday on the positive headlines. According to Koyfin, short interest in the stock is pretty high at 27.80%.
Thanks to the recent surge, Applied Digital stock has recouped Trump tariff-induced losses seen in April and is up over 73% year-to-data.
The Koyfin-compiled consensus price target of $14.28 for the stock implies nearly 8% upside potential from current levels.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
