Applied Digital Amends Lease Agreements with CoreWeave for Data Centers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Should l Buy APLD?
Source: seekingalpha
- Lease Amendments: Applied Digital has amended two lease agreements with CoreWeave regarding the Polaris Forge 1 data centers in Ellendale, North Dakota, suspending the ELN-02 lease and establishing new leases with CoreWeave Compute Acquisition Company, indicating a strategic shift in data center operations.
- Enhanced Credit Support: CoreWeave provided an Unconditional Springing Guaranty of Payment and Performance to Applied Digital, along with a $50 million letter of credit to secure obligations under the ELN-02 lease, which enhances CoreWeave's credit ratings and is expected to positively impact holders of Applied Digital's 9.250% notes due 2030.
- Revenue Projections: Under the new lease terms, Applied Digital will deliver 250 MW of capacity to CoreWeave, projected to generate approximately $7 billion in revenue over 15 years, further solidifying its position in the high-performance computing market.
- Stock Price Reaction: Applied Digital's shares surged 15% by Tuesday's close and gained an additional 3.6% in pre-market trading on Wednesday, reflecting positive market sentiment regarding the lease amendments, while CoreWeave's stock also rose by 12%.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 33.550
Low
36.00
Averages
52.22
High
99.00
Current: 33.550
Low
36.00
Averages
52.22
High
99.00
About APLD
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and high-performance compute hosting (HPC Hosting Business). The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Customer-owned hardware is installed in its facilities, and the Company provides operational and maintenance services for a fixed fee. Its facilities include a 106 megawatt (MW) facility in Jamestown and a 180 MW facility in Ellendale, North Dakota. The HPC Hosting Business designs, builds, and operates data centers which are designed to support high-compute applications using advanced technologies and infrastructures to provide services to customers. Its HPC data center is located at its Polaris Forge 1 campus with 100 MW capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Nebius Exceptional Growth: Nebius's stock has risen over 80% in 2026, offering a full-stack AI cloud computing infrastructure that attracts significant investment, with a projected 523% revenue growth in 2026, showcasing the success of its business model and robust market demand.
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- Investment Risk Advisory: While these three stocks show impressive performance, none are profitable and are taking on debt to expand in response to AI demand, necessitating careful risk assessment by investors, whereas Nvidia remains a stable investment choice.
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- Nebius Rapid Growth: Nebius's stock has risen over 80% in 2026, with an expected growth rate of 523% in 2026, offering full-stack AI cloud computing infrastructure that caters to the market's need for running AI models, indicating a successful business model.
- Applied Digital's Successful Model: Applied Digital's stock has increased by 37% in 2026, with its revenue rising 139% in the latest quarter due to its strategy of building data centers for cloud companies, showcasing market opportunities amid surging AI demand.
- Investment Risk Advisory: While CoreWeave, Nebius, and Applied Digital show impressive performance, none are currently profitable and are taking on debt to expand, which poses risks for investors, whereas Nvidia remains profitable and is still a solid investment choice.
See More
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- CoreWeave's Strong Performance: CoreWeave's stock has surged over 65% in 2026, primarily since April, indicating robust demand in AI training acceleration, with Nvidia's stake reflecting confidence in its future performance.
- Nebius's Rapid Growth: Nebius's stock has risen over 80% in 2026, with projected revenue growth of 523% this year, highlighting strong market demand for its AI-first cloud computing infrastructure, likely to continue outperforming Nvidia.
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- Risks and Opportunities: While all three companies are experiencing rapid growth, they are not yet profitable and are taking on debt to expand, necessitating careful risk assessment by investors, whereas Nvidia remains profitable despite recent underperformance.
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- Retail Investor Favor: NBIS has gained 67% year-to-date and received investment from Nvidia, reflecting strong retail investor interest in emerging cloud providers, particularly Nebius and IREN.
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- Future Spending Expectations: The
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- Ciena Stock Evaluation: Ciena's stock has surged 100% year-to-date, and Cramer believes this increase is too rapid, advising investors to hold off for now, which illustrates a cautious stance towards overvalued stocks.
- Negative Outlook on Applied Digital: Cramer highlighted that Applied Digital is not generating profits and is losing ground in a competitive market, recommending investors steer clear of this stock, emphasizing the importance of profitability.
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