Shares of Applied Digital (NASDAQ: APLD) surged 34.5% this week, outperforming the S&P 500 and Nasdaq-100. This increase was attributed to a major deal between Microsoft and AI cloud provider Nebius. Microsoft will pay Nebius $17.4 billion over five years for AI infrastructure, boosting growth expectations. This positive news also lifted shares of companies involved in AI data center building. However, the risks of investing in Applied Digital are high due to substantial debt and potential cooling demand. Investors are advised to consider other options identified by The Motley Fool Stock Advisor team for potential returns.

Read more at Yahoo Finance: Why Did Applied Digital Stock Skyrocket 34.5% This Week?