Shares of Applied Digital Corp (APLD) surged 8.91% on Wednesday, continuing the impressive rally that began earlier in the week. The stock's meteoric rise can be attributed to a series of positive developments, including a major business deal and an analyst upgrade.

The primary catalyst for the stock's ascent is Applied Digital's announcement of two significant 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. The deal not only bolsters Applied Digital's financial outlook but also validates its position as a key player in the AI and high-performance computing infrastructure sector.

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. The new price target suggests considerable upside potential, further stoking investor enthusiasm. Market sentiment was also buoyed by unusually high options activity, with over 217,000 calls trading at 10 times the expected volume, indicating strong bullish sentiment among traders.