Applied Digital Shares Surge Following New Data Center Joint Venture and Bullish Analyst Rating
Applied Digital (APLD) saw its stock rise nearly 9% on Wednesday, significantly outperforming the S&P 500. The surge was driven by the announcement of a joint venture with Soluna Holdings (SLNH) to develop a 50-megawatt next-generation data center in Texas. Under the agreement, Applied Digital will hold a 51% stake and provide capital, while Soluna provides land and power assets. The project already has potential momentum via a non-binding letter of intent from ChronoScale Holdings, an accelerated compute platform majority-owned by Applied Digital. Additionally, analyst Bryan Baratian of Roth/MKM reinstated coverage on the stock with a 'buy' rating and a $35 price target, citing the company's successful transition into the AI data center space compared to former crypto-focused peers.
Topics: Artificial Intelligence Data Center Joint Venture Renewable Energy