Applied Digital Corp (APLD) stock soared 8.68% in pre-market trading on Thursday, extending its remarkable rally that has seen the stock skyrocket by over 94% this week. The latest surge comes on the heels of several significant developments that have dramatically boosted investor confidence in the high-performance computing infrastructure provider.

The primary catalyst for Applied Digital's meteoric rise is the announcement of two substantial 15-year lease agreements with CoreWeave, a specialized cloud services provider backed by Nvidia. These leases are expected to generate approximately $7 billion in revenue for Applied Digital over their duration. Under the agreements, Applied Digital will provide 250MW of critical IT load to support CoreWeave's AI and high-performance computing infrastructure at its Ellendale, North Dakota data center campus.

Adding fuel to the rally, B. Riley, a prominent financial services firm, raised its price target for Applied Digital from $8 to $15 while maintaining a Buy rating. This upgrade reflects growing confidence in the company's business model and future prospects. Furthermore, CoreWeave disclosed in a 13G filing that it now holds a 5.5% stake (13.06 million shares) in Applied Digital, further cementing the strategic partnership between the two companies. The involvement of Nvidia, which holds stakes in both Applied Digital and CoreWeave, has also contributed to the positive sentiment surrounding the stock, as investors increasingly view Applied Digital as a key player in the burgeoning AI infrastructure sector.