Applied Digital Stock Soars 34.5% This Week: Here’s What Ignited The Rocket
Another week, another crypto-infused stock moonshot—Applied Digital just blasted off with a staggering 34.5% weekly surge.
Behind The Pump
Market momentum isn’t built on thin air—this rally’s got teeth. Think strategic positioning in high-demand compute infrastructure and bullish institutional sentiment swinging back into crypto-adjacent plays.
Infrastructure Wins, Always
While retail traders chase memecoins, smart money stacks exposure to picks-and-shovels providers. Applied Digital’s surge mirrors the sector’s pivot toward real assets backing the digital economy.
Timing, Liquidity, and a Dash of Greed
Let’s be real—half of Wall Street still can’t explain Proof-of-Work, but they’ll buy anything with ‘digital’ in the name during a bull run. When Bitcoin flexes, everything in its orbit gets pulled up.
So, is it sustainable or just another crypto sugar rush? Only the charts know—but for now, ride the wave while the algos are still hungry.
Nebius and Microsoft team up
In what is one of the largest data center deals to date, Microsoft has agreed to pay Nebius $17.4 billion over the next five years for AI infrastructure. Speaking of the deal, Nebius CEO Arkady Volozh said that he expects more deals like it and that the agreement will "help us to accelerate the growth of our AI cloud business even further in 2026 and beyond."
This echoes comments from rival's CEO on CNBC, who said that AI companies "can not get enough compute" and that demand continued to be strong. The bullish news helped lift shares of companies across the market involved in AI data center building, including Applied Digital.
Image source: Getty Images.
Demand is hot, but risks remain
The opportunity in AI data centers is enormous, but the risks are too. Applied Digital is already carrying substantial debt and faces an unenviable choice to keep up with demand: Borrow more money at punishing interest rates or dilute existing shareholders.
There is a serious risk here that demand will cool and companies like Applied Digital will get left holding the bag. The risks are too great here, and I WOULD stay away from Applied Digital stock -- as well as CoreWeave stock, for that matter.
