Applied Digital (NASDAQ: APLD) stock is posting big gains in Tuesday's trading. The company's share price was up 9.4% as of 11:30 a.m. ET and had been up as much as 25.1% earlier in the day's trading.

Australia's Macquarie on Tuesday agreed to take a 15% stake in Applied Digital's high-performance computing business and invest up to $5 billion in the company's artificial intelligence data centers amid booming AI demand.

Applied Digital has a median price target of $11 per share, which is 26% higher than the current price. While not yet profitable, the company is heading in that direction and this Macquarie funding will allow it to improve its balance sheet, as well as invest.

Key Takeaways Applied Digital shares surged in intraday trading Tuesday after announcing that Macquarie Asset Management is investing up to $5 billion in its high-performance computing data centers.Nvidia is already an investor in Applied Digital data centers and announced a stake in the company last year.

Australian bank Macquarie will invest up to $5 billion in data centers being built by Applied Digital. Shares in the AI infrastructure company jumped 17% Tuesday morning. Read more:

Applied Digital has entered into a significant $5 billion perpetual preferred equity financing facility with Macquarie.

Macquarie Group’s asset management unit has upped its exposure to the burgeoning data centre sector in the United States through an investment and funding deal with Applied Digital Corporation, worth up to $US5bn ($8.