Why Did Applied Digital Stock Skyrocket 34.5% This Week?

Shares of Applied Digital (APLD) surged 34.5% this week, outpacing broader market gains, as the AI data center sector heated up. The catalyst? A landmark $17.4 billion deal between Microsoft and Nebius for AI infrastructure, signaling insatiable demand for compute power. "This will accelerate our AI cloud growth through 2026 and beyond," declared Nebius CEO Arkady Volozh, mirroring industry-wide bullishness.

While the AI data center Gold rush lifts stocks across the sector, Applied Digital faces a high-wire act. The company must balance mounting debt against the need to expand capacity—either through dilutive equity raises or expensive debt financing. Market euphoria masks a stark reality: should demand cool, early movers risk being stranded with overleveraged assets.