Applied Digital shares climb on Texas AI data center pact and bullish analyst call
Applied Digital (APLD) shares rose 3% after announcing a joint venture with Soluna (SLNH) for a 50MW AI data center in Texas, powered by wind energy. APLD will hold 51% stake, with Soluna contributing land and power. Roth/MKM reinstated a 'Buy' rating and $35 target, citing execution certainty and market growth. ChronoScale (CHRN) may lease the facility. Deal expected to close by year-end, pending approvals.
How this was made
The 30-second read
Why it matters
The announcement provides fresh growth visibility for both companies, likely prompting short‑term buying pressure.
Market read
The deal and rating upgrade create a fresh, material catalyst for Applied Digital and a secondary boost for Soluna, aligning with the AI infrastructure theme.
What to watch
Regulatory approvals for the tax abatement and long‑term tenant commitment remain uncertain.
Background
Applied Digital (APLD) and Soluna Holdings (SLNH) disclosed a joint venture to build a 50 MW AI data center powered by wind energy in Texas, accompanied by an analyst rating reinstatement.
Ticker impact
Applied Digital announced a joint venture for a Texas AI data center and received a reinstated Buy rating, driving its shares up 3%.
likely upward pressure as investors price in the JV upside and rating reinstatement.
The deal provides a 51% stake in a 50 MW AI facility and the analyst set a $35 target, both fresh and material for a micro‑cap.
Soluna Holdings entered a definitive agreement to co‑develop the Texas AI data center with Applied Digital, gaining a 49% stake.
potential upside as the project progresses and the wind‑powered data center becomes operational.
Soluna benefits from capital infusion and a strategic AI tenant, but the news is secondary to Applied Digital.
Market effects
Strengthens the AI‑focused data‑center niche and highlights renewable‑powered facilities.
Boosts Texas tech infrastructure outlook and may attract further AI investments in the region.
Adds to the broader AI data‑center build‑out narrative, supporting sector momentum.
Counterpoint
The JV may strain Applied Digital's balance sheet if capital costs exceed expectations.
Key entities
- companyApplied Digital
US‑listed micro‑cap providing capital for the AI data center JV.
- companySoluna Holdings
Renewable‑energy firm contributing land and power assets to the JV.
- analystRoth/MKM
Reinstated a Buy rating and set a $35 price target for Applied Digital.
