Applied Digital shares rip 48% higher on $7 billion CoreWeave AI lease agreement
Published on: 2025-06-10 08:05:03
Shares of Applied Digital rose 48% after the company said it signed two long-term lease agreements with CoreWeave for artificial intelligence data centers.
Nvidia -backed CoreWeave climbed about 8% following the announcement.
Applied Digital said it expects $7 billion in rental revenue during the approximately 15-year period. The price is set upfront, "including an annual escalator regardless of actual project costs," according to a presentation shared with investors.
"Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure," said Applied Digital CEO Wes Cummins in a release announcing the news.
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