By Chris Wack
Applied Digital shares were up 37% to $4.67 after the company said that its recently launched AI Cloud Service, through its wholly-owned subsidiary Sai Computing, has secured its first major AI customer with an agreement worth up to $180 million over a 24-month period.
The stock closed Monday’s session up 19%, and is up 114% in the past 12 months.
The company said the customer will make a significant pre-payment as part of the agreement. The service is expected to start coming online this June and is expected to be fully ramped up by the end of the year.
Needham raised its price target for Applied Digital shares to $5.50 from $3.70 a share, while maintaining its Buy rating.
Write to Chris Wack at [email protected]
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