Applied Digital Corp (APLD) stock surged 9.81% in the 24-hour trading session, continuing its impressive rally that has seen the stock skyrocket by 94% this week. The latest jump comes on the heels of several positive developments that have significantly 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, providing a substantial and stable long-term income stream. 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, particularly in light of the CoreWeave deal. 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.