TLDR
- Applied Digital stock gained 19% following announcement of $11 billion CoreWeave lease agreements
- Three 15-year contracts will provide 400MW capacity at Polaris Forge 1 campus in North Dakota
- Company completed $50 million debt financing with Macquarie Equipment Capital for expansion
- First 100MW facility scheduled to begin operations in Q4 2025
- Stock has climbed 220% year-to-date as company pivots from crypto to AI infrastructure
Applied Digital stock surged 19% after announcing expanded partnerships with AI infrastructure giant CoreWeave. The company secured three 15-year lease agreements worth approximately $11 billion in total revenue.
Applied Digital became Monday’s top trending stock after CEO Wes Cummins revealed major advances in the company’s AI infrastructure business. The announcement came in a September 12 letter to shareholders outlining growth plans.
The CoreWeave partnership now includes three separate 15-year leases covering 400 megawatts of capacity. These contracts are expected to generate roughly $11 billion in lease revenue over their duration at the Polaris Forge 1 campus in Ellendale, North Dakota.
Applied Digital also closed a $50 million debt financing deal with Macquarie Equipment Capital Inc. The funding supports expansion plans as the company transitions from cryptocurrency mining to AI-focused data centers.
The Polaris Forge 1 facility is designed to eventually reach 1 gigawatt of total capacity. The first 100MW section will begin operations in Q4 2025. An additional 150MW facility is under construction for mid-2026 completion.
Second AI Factory Campus Underway
Construction has started on Polaris Forge 2 near Harwood, North Dakota. This second campus represents a $3 billion investment and will initially provide 200MW of capacity. The company targets 2026 for initial operations and 2027 for full capacity.
Cummins stated that Applied Digital is in advanced talks with an investment-grade hyperscaler for the new project. This diversification could reduce customer concentration risk.
The expanded CoreWeave agreement strengthens Applied Digital’s revenue predictability. Long-term contracts provide cash flow stability as the company scales its AI infrastructure operations.
Strong Stock Performance Continues
Applied Digital shares have gained 220% year-to-date and over 264% in the past 12 months. The stock reached “extremely bullish” sentiment on Stocktwits with high message volume.
Retail investors are anticipating announcements about additional hyperscaler partnerships. Some believe the stock could reach $40 when new deals are revealed.
Community fair value estimates range from $2.11 to $24 per share. The wide range reflects varying opinions on growth prospects and revenue reliability given customer concentration concerns.
Applied Digital’s narrative projects $755.7 million revenue by 2028, requiring 73.7% annual growth. Earnings are forecasted at $102.2 million, up from current losses of $161.0 million.
The company completed its $50 million debt financing with Macquarie Equipment Capital in September 2025 to fund AI infrastructure expansion plans.
