TLDRs;
- Applied Digital stock jumps 14% after Nvidia invests $2 billion in CoreWeave.
- Two 15-year leases with CoreWeave could bring Applied Digital $7 billion in revenue.
- Construction begins on Delta Forge 1, an AI campus drawing 430 megawatts of power.
- Investors remain cautious but optimistic as AI data center demand drives market attention.
Applied Digital (NASDAQ: APLD) climbed sharply in after-hours trading Tuesday, surging 14.2% to $41.35, following news that Nvidia (NASDAQ: NVDA) invested $2 billion in cloud data center firm CoreWeave.
Investors reacted enthusiastically, viewing the move as a signal of rising demand for AI-focused data infrastructure. The stock traded between $36.51 and $42.07 on roughly 47.4 million shares, marking one of Applied Digital’s most volatile sessions in recent months.
Applied Digital Corporation, APLD
Nvidia Investment Drives AI Data Center Interest
Nvidia’s $2 billion stake in CoreWeave, purchased at $87.20 per share, underscores the tech giant’s commitment to building massive “AI factories”, specialized data centers designed to handle high-performance AI workloads. Jensen Huang, Nvidia’s CEO, emphasized that the partnership aims to meet surging AI computing demands globally.
The announcement sparked gains not only in CoreWeave shares but also for Applied Digital, which is directly linked to CoreWeave through long-term leasing agreements.
Applied Digital Secures Lucrative Long-Term Leases
Applied Digital has inked two 15-year leases with CoreWeave, providing a direct line to Nvidia-backed expansion. These agreements are projected to produce approximately $7 billion in revenue over the lease term.
The company’s latest earnings report highlighted leased capacity of 600 megawatts across two North Dakota facilities, with 400 MW allocated to CoreWeave and 200 MW leased to a U.S. investment-grade hyperscaler. CEO Wes Cummins noted that inbound demand is rising meaningfully, with negotiations underway for additional hyperscaler contracts.
Delta Forge 1 Marks Next AI Factory Step
Construction has started on Delta Forge 1, an upcoming AI factory campus expected to draw 430 megawatts of utility power at launch. While the exact location remains undisclosed, this facility represents a significant step in Applied Digital’s expansion of AI-ready infrastructure.
The project highlights both the company’s growth potential and the capital-intensive nature of building AI-focused data centers, which require careful coordination of land, power, and customer agreements.
Market Sentiment Remains Cautious but Optimistic
Despite the recent surge, analysts caution that Applied Digital’s fortunes depend heavily on financing conditions and a small pool of major clients. Market observers will closely monitor whether Tuesday’s momentum carries into regular trading sessions, as well as updates on new leases or AI factory buildouts.
The company’s next earnings report is scheduled for April 13, 2026, and investors are eager for further clarity on revenue recognition from prospective leases valued at roughly $16 billion.
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