Applied Digital (APLD) Stock Hits A New All-Time High: What's Going On?

Shares of Applied Digital Corp (NASDAQ:APLD) are trading sharply higher Wednesday morning, continuing a rally fueled by better-than-expected first-quarter financial results and an expanded partnership with AI hyperscaler CoreWeave Inc (NASDAQ:CRWV). Here’s what investors need to know.

• APLD is approaching key resistance levels. See what is driving the move here.

What To Know: Applied Digital shares are up about 40% since the company reported earnings last week. The data center operator posted fiscal first-quarter revenue of $64.2 million, an 84% year-over-year increase, which beat analyst expectations. The company reported an adjusted loss of 3 cents per share, an improvement over the 13-cent loss analysts had anticipated.

Investor optimism is largely driven by the expansion of its lease agreement with CoreWeave, now covering the full 400-megawatt capacity at Applied Digital’s Polaris Forge 1 campus in North Dakota.

This deal is valued at approximately $11 billion in revenue over its 15-year term, solidifying a stable, long-term revenue stream. The company also confirmed it has 700 megawatts under construction.

Following the upbeat announcement, several analysts have boosted their price targets. Needham nearly doubled its target to $41 from $21, while Craig-Hallum and HC Wainwright & Co. also issued significant increases, signaling strong confidence in the company’s growth.

Applied Digital has a consensus Buy rating from analysts with an average price target of $25.27, according to Benzinga data.

Benzinga Edge Rankings: The stock’s powerful upward movement is reflected in its Benzinga Edge Momentum score, which stands at an impressive 99.31.

APLD Price Action: Applied Digital shares were up 13.01% at $39.61 at the time of publication on Wednesday. The stock broke through its previous 52-week high of $39.33 in early trading, according to Benzinga Pro data.

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How To Buy APLD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Applied Digital’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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