Applied Digital Corp (APLD) stock surged 5.12% in pre-market trading on Monday, continuing its impressive run after a 103% jump last week. The company, which develops digital infrastructure for high-performance computing applications, has been in the spotlight due to its recent agreements with AI cloud-computing startup CoreWeave and its connection to chip giant Nvidia.

Applied Digital recently signed two approximately 15-year lease agreements with CoreWeave, under which it will provide 250MW of critical IT load to support CoreWeave's AI and HPC infrastructure at its Ellendale, North Dakota data center campus. The company expects to generate approximately $7 billion in total revenue over the lease terms, significantly boosting its long-term prospects in the rapidly growing AI infrastructure market.

Adding to investor enthusiasm is Applied Digital's connection to Nvidia, the world's most valuable chipmaker and a key player in the AI boom. Nvidia held roughly 7.7 million shares of Applied Digital as of March 31, according to a regulatory filing. This association, coupled with the broader rally in AI-related stocks, appears to be driving the continued interest in Applied Digital shares. The pre-market surge suggests that investors remain bullish on the company's potential to capitalize on the growing demand for AI computing power and infrastructure.