Applied Digital Options Volume Hits 133,842 Contracts, Exceeding 54.1% of Daily Average
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy APLD?
Source: NASDAQ.COM
- Active Options Trading: Applied Digital Corporation's options volume reached 133,842 contracts today, equivalent to approximately 13.4 million shares, indicating strong market interest and representing 54.1% of its average daily trading volume over the past month.
- High Strike Options Activity: Among the options, the $28 strike call option expiring on January 2, 2026, was particularly active with 6,720 contracts traded today, representing about 672,000 underlying shares, suggesting investor expectations for future price increases.
- Procore Options Overview: Concurrently, Procore Technologies Inc's options volume stood at 5,207 contracts, approximately 520,700 shares, accounting for 50.7% of its average daily trading volume over the past month, reflecting its market activity.
- Focus on High Strike Options: The $80 strike call option for Procore expiring on February 20, 2026, saw a trading volume of 5,168 contracts today, representing around 516,800 shares, indicating optimistic sentiment among investors regarding its future performance.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 27.400
Low
36.00
Averages
52.22
High
99.00
Current: 27.400
Low
36.00
Averages
52.22
High
99.00
About APLD
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and high-performance compute hosting (HPC Hosting Business). The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Customer-owned hardware is installed in its facilities, and the Company provides operational and maintenance services for a fixed fee. Its facilities include a 106 megawatt (MW) facility in Jamestown and a 180 MW facility in Ellendale, North Dakota. The HPC Hosting Business designs, builds, and operates data centers which are designed to support high-compute applications using advanced technologies and infrastructures to provide services to customers. Its HPC data center is located at its Polaris Forge 1 campus with 100 MW capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Short Interest Analysis: Many traders focus on heavily shorted stocks as they are perceived to carry potential downside risks, particularly when companies face challenges like disappointing earnings and persistent cash burn, which could lead to stock price declines.
- Short Squeeze Mechanics: A short squeeze is a rapid, feedback-driven price increase often triggered by unexpected positive catalysts, such as stronger-than-expected earnings or improved guidance, forcing short sellers to cover their positions, which further drives up the stock price.
- Characteristics of Heavily Shorted Stocks: Heavily shorted stocks typically belong to companies with market caps above $2 billion, average 14-day trading volumes exceeding 5 million shares, and free floats above 5 million shares, attracting significant attention from professional traders due to high short interest.
- Market Dynamics Impact: High short interest not only draws the attention of institutional investors but also piques the interest of retail and momentum traders, who believe that once the stock begins to rebound, short sellers will be forced to cover, accelerating the stock price increase.
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- Significant Stock Surge: Following this announcement, Micron's stock rose by 5.1% to $17.77 per share, reflecting market optimism regarding its future growth potential, especially against the backdrop of strong demand in the AI sector.
- Deepened R&D Collaboration: The two companies will share their engineering teams' research efforts, focusing on the development of next-generation materials and process technologies, which not only strengthens the semiconductor innovation pipeline in the U.S. but also lays a foundation for Micron's sustained growth in the AI market.
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- Surging Demand Context: Micron's memory chips are crucial for AI data centers, and despite concerns over production capacity, this partnership is likely to alleviate those fears, contributing to a 5.1% rise in Micron's stock price.
- Collaborative R&D Synergy: The two companies will share their engineering teams' research efforts to strengthen the semiconductor innovation pipeline in the U.S., particularly in developing next-generation materials and technologies, laying the groundwork for future advancements.
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Nvidia's Sale of Applied Digital Stake Raises Concerns
- Portfolio Adjustment: Nvidia sold its 7.7 million shares of Applied Digital, valued at approximately $177 million, during Q4 2025, raising concerns about its investment strategy, although such moves are not uncommon for the company.
- Market Reaction: Following Nvidia's sale, Applied Digital's stock dropped by 10.50% to a current price of $25.14, reflecting negative investor sentiment regarding Nvidia's exit, despite the strong demand for Applied Digital's high-performance computing data centers.
- Financial Performance: In Q2 of fiscal 2026, Applied Digital reported a 250% year-over-year revenue increase, indicating robust demand for its data centers; however, its net loss also rose due to significant investments in capacity expansion, suggesting potential short-term financial strain.
- Future Outlook: While Nvidia's stock sale may be perceived as a negative signal, Applied Digital's expansion plans and strong customer demand are expected to support future cash flows, indicating that investors should remain patient to realize the company's long-term growth potential.
See More
Nvidia's Exit from Applied Digital Raises Investor Concerns
- Nvidia's Stake Sale: Nvidia sold its entire stake in Applied Digital during Q4 2025, previously holding approximately 7.7 million shares valued at about $177 million, raising concerns among investors regarding Applied Digital's future prospects and potentially impacting investor confidence.
- Applied Digital's Growth Momentum: Despite Nvidia's exit, Applied Digital reported a staggering 250% year-over-year revenue increase in Q2 of fiscal 2026, indicating strong demand for its data centers and highlighting the company's robust potential in AI infrastructure development.
- Investor Patience Required: Applied Digital is making significant investments in infrastructure to meet customer demands, and while its net loss has increased, it is expected to generate substantial cash flows once new data centers are operational, necessitating patience from investors.
- Market Competition Analysis: Although Nvidia's share sale may be perceived as a negative signal, analysts believe that Applied Digital still has the potential to establish itself as a top choice for AI processing power, warranting investor attention on its future market performance.
See More
Analysis of the Appeal of Heavily Shorted Stocks
- Short Interest Analysis: Many traders focus on heavily shorted stocks as they are perceived to carry potential downside risks, particularly when companies face challenges like disappointing earnings and persistent cash burn, which could lead to stock price declines.
- Short Squeeze Mechanics: A short squeeze is a rapid, feedback-driven price increase often triggered by unexpected positive catalysts, such as stronger-than-expected earnings or improved guidance, forcing short sellers to cover their positions, which further drives up the stock price.
- Characteristics of Heavily Shorted Stocks: Heavily shorted stocks typically belong to companies with market caps above $2 billion, average 14-day trading volumes exceeding 5 million shares, and free floats above 5 million shares, attracting significant attention from professional traders due to high short interest.
- Market Dynamics Impact: High short interest not only draws the attention of institutional investors but also piques the interest of retail and momentum traders, who believe that once the stock begins to rebound, short sellers will be forced to cover, accelerating the stock price increase.
See More
Micron Partners with Applied Materials to Accelerate AI Memory Development
- Accelerated Memory Development: Micron Technology and Applied Materials announced a partnership to expedite the development of advanced memory, particularly DRAM and NAND storage for AI applications, aiming to meet the surging market demand and enhance the company's competitive position.
- Significant Stock Surge: Following this announcement, Micron's stock rose by 5.1% to $17.77 per share, reflecting market optimism regarding its future growth potential, especially against the backdrop of strong demand in the AI sector.
- Deepened R&D Collaboration: The two companies will share their engineering teams' research efforts, focusing on the development of next-generation materials and process technologies, which not only strengthens the semiconductor innovation pipeline in the U.S. but also lays a foundation for Micron's sustained growth in the AI market.
- Optimistic Financial Outlook: Micron expects to report second-quarter results on March 18, with projected revenue of $18.7 billion and non-GAAP diluted EPS of $8.42, representing a substantial increase from last year's $8 billion and $1.56, indicating robust growth driven by AI demand.
See More
Hood River Capital Management Sells Tower Semiconductor Shares
- Share Reduction: Hood River Capital Management sold 1,116,598 shares of Tower Semiconductor in Q4 2025, reducing its stake to 0.5%, reflecting a reassessment of market valuations.
- Market Value Impact: This sale decreased the value of Hood River's Tower Semiconductor shares by approximately $63 million, with the remaining 393,992 shares valued at $46 million, indicating a high market valuation for the stock.
- Performance Metrics: Tower Semiconductor's stock surged 167% over the past year, significantly outperforming the S&P 500 by 155.2 percentage points, highlighting strong demand for its power management and image-sensing products.
- Investment Strategy Shift: Hood River prefers to invest in companies with above-average earnings growth prospects; while Tower's long-term growth potential is recognized, they may seek more attractively priced growth stocks.
See More
Micron Partners with Applied Materials to Accelerate Semiconductor Technology
- Accelerated Technology Development: Micron and Applied Materials have partnered to expedite the development of advanced DRAM, high-bandwidth memory, and NAND storage specifically for AI applications, which is expected to significantly enhance Micron's competitiveness in the AI market.
- Surging Demand Context: Micron's memory chips are crucial for AI data centers, and despite concerns over production capacity, this partnership is likely to alleviate those fears, contributing to a 5.1% rise in Micron's stock price.
- Collaborative R&D Synergy: The two companies will share their engineering teams' research efforts to strengthen the semiconductor innovation pipeline in the U.S., particularly in developing next-generation materials and technologies, laying the groundwork for future advancements.
- Optimistic Financial Outlook: Micron anticipates reporting second-quarter revenue of $18.7 billion and non-GAAP diluted EPS of $8.42 on March 18, representing a substantial increase from last year's $8 billion and $1.56, highlighting the company's strong growth potential driven by AI demand.
See More
Nvidia's Sale of Applied Digital Stake Raises Concerns
- Portfolio Adjustment: Nvidia sold its 7.7 million shares of Applied Digital, valued at approximately $177 million, during Q4 2025, raising concerns about its investment strategy, although such moves are not uncommon for the company.
- Market Reaction: Following Nvidia's sale, Applied Digital's stock dropped by 10.50% to a current price of $25.14, reflecting negative investor sentiment regarding Nvidia's exit, despite the strong demand for Applied Digital's high-performance computing data centers.
- Financial Performance: In Q2 of fiscal 2026, Applied Digital reported a 250% year-over-year revenue increase, indicating robust demand for its data centers; however, its net loss also rose due to significant investments in capacity expansion, suggesting potential short-term financial strain.
- Future Outlook: While Nvidia's stock sale may be perceived as a negative signal, Applied Digital's expansion plans and strong customer demand are expected to support future cash flows, indicating that investors should remain patient to realize the company's long-term growth potential.
See More
Nvidia's Exit from Applied Digital Raises Investor Concerns
- Nvidia's Stake Sale: Nvidia sold its entire stake in Applied Digital during Q4 2025, previously holding approximately 7.7 million shares valued at about $177 million, raising concerns among investors regarding Applied Digital's future prospects and potentially impacting investor confidence.
- Applied Digital's Growth Momentum: Despite Nvidia's exit, Applied Digital reported a staggering 250% year-over-year revenue increase in Q2 of fiscal 2026, indicating strong demand for its data centers and highlighting the company's robust potential in AI infrastructure development.
- Investor Patience Required: Applied Digital is making significant investments in infrastructure to meet customer demands, and while its net loss has increased, it is expected to generate substantial cash flows once new data centers are operational, necessitating patience from investors.
- Market Competition Analysis: Although Nvidia's share sale may be perceived as a negative signal, analysts believe that Applied Digital still has the potential to establish itself as a top choice for AI processing power, warranting investor attention on its future market performance.
See More
