Applied Digital (NASDAQ: APLD) stock surged 9% Thursday, with a 10.7% peak. S&P 500 and Nasdaq rose 0.6% and 0.9%, respectively. Analysts’ price-target increase pushed APLD shares up 337% YTD, with bullish momentum and a new $5 billion data-center lease. AI demand boosts outlook, but valuation concerns linger.

Craig-Hallum issued new coverage on Applied Digital, reiterating a buy rating with a price target increase to $39/share from $37/share. While recent gains are notable, valuation at 31 times expected sales raises concerns. AI’s potential growth is promising, but profitability and market trajectory remain uncertain.

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Read more at Yahoo Finance: Why Applied Digital Stock Skyrocketed Today