Applied Digital Stock Volatility Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy APLD?
Source: stocktwits
- Stock Fluctuation: Applied Digital's stock gained 37% as of the last close, driven by a strong earnings report in January, but slumped over 8% in pre-market trading on Wednesday after Nvidia disclosed its exit from the stake, indicating volatility in market confidence.
- Investor Sentiment Improvement: Despite Nvidia's sale of a $177 million stake, retail sentiment on Stocktwits improved from 'extremely bearish' to 'bearish', suggesting a potential shift in market perception that could attract more investor interest in Applied Digital.
- Analyst Perspective: Roth Capital reiterated its 'Buy' rating with a $58 price target for Applied Digital, asserting that Nvidia's exit does not alter the fundamental business outlook, and may even present an attractive entry point for investors amid the stock's decline.
- Long-Term Lease Agreements: Applied Digital reported securing billions in long-term leases, including a $5 billion agreement with a U.S.-based hyperscaler for 200 MW at its Polaris Forge 2 campus, highlighting strong demand and growth potential in the market.
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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: 35.280
Low
36.00
Averages
52.22
High
99.00
Current: 35.280
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.
Applied Digital Stock Volatility Analysis
- Stock Fluctuation: Applied Digital's stock gained 37% as of the last close, driven by a strong earnings report in January, but slumped over 8% in pre-market trading on Wednesday after Nvidia disclosed its exit from the stake, indicating volatility in market confidence.
- Investor Sentiment Improvement: Despite Nvidia's sale of a $177 million stake, retail sentiment on Stocktwits improved from 'extremely bearish' to 'bearish', suggesting a potential shift in market perception that could attract more investor interest in Applied Digital.
- Analyst Perspective: Roth Capital reiterated its 'Buy' rating with a $58 price target for Applied Digital, asserting that Nvidia's exit does not alter the fundamental business outlook, and may even present an attractive entry point for investors amid the stock's decline.
- Long-Term Lease Agreements: Applied Digital reported securing billions in long-term leases, including a $5 billion agreement with a U.S.-based hyperscaler for 200 MW at its Polaris Forge 2 campus, highlighting strong demand and growth potential in the market.
See More
Software Stocks Decline, Financials Support Market Stability
- Software Stock Pressure: Concerns over AI tools potentially disrupting existing business models led to significant declines in software stocks, with Palo Alto Networks dropping over 8% in after-hours trading, reflecting market caution towards tech equities.
- Strong Financial Performance: Despite the pressure on software stocks, financials like Citigroup and JPMorgan Chase rose by 2.7% and 1.5% respectively, helping to limit overall market losses and pushing major indexes into positive territory at the close, demonstrating resilience in the financial sector.
- Cautious Market Sentiment: U.S. stock futures slipped late Tuesday, with Nasdaq 100 futures down 0.2% and S&P 500 futures down 0.1%, indicating investor caution ahead of upcoming Fed minutes and key economic data releases.
- Trade Agreement Progress: The first projects under the U.S.-Japan trade deal have been approved, covering oil and gas, power generation, and critical minerals, marking the initial deployment of Japan's $550 billion investment commitment, which could positively impact related industries.
See More
Nvidia Exits Investment in Applied Digital
- Shareholding Changes: As of December 31, 2025, Nvidia sold its $177 million stake in Applied Digital, causing the company's stock to tumble nearly 8% in after-hours trading, reflecting market concerns about its future prospects.
- Investment History: Nvidia's initial investment of $160 million in Applied Digital in September 2024 aimed to bolster its AI infrastructure, but the recent exit indicates a waning confidence in the project's viability.
- Market Reaction: Over the past 24 hours, sentiment on Stocktwits regarding APLD has remained extremely bearish, with low message volumes indicating a lack of investor confidence in the tech sector, despite some urging to 'buy the dip'.
- Other Investment Dynamics: Nvidia's latest 13F filing reveals not only its exit from Applied Digital but also increased positions in Intel, Nokia, and Synopsys, while divesting from Arm Holdings and Recursion Pharmaceuticals, indicating a significant portfolio shift.
See More
Global AI Data Center Market Set for Rapid Growth
- Market Growth Potential: The global AI data center market is projected to grow from $236.4 billion in 2025 to $933.8 billion by 2030 at a CAGR of 31.6%, indicating strong demand for high-performance chips and purpose-built data centers, enhancing long-term investment value for related companies.
- Applied Digital Progress: Applied Digital's Polaris Forge 1 data center has commenced operations with the first 100-megawatt facility online, and full capacity of 400 megawatts is expected by 2027, with total contracts worth $16 billion, providing strong revenue visibility and stable cash flow.
- Astera Labs Financial Performance: Astera Labs reported a 92% year-over-year revenue increase to $270.6 million in Q4 FY2025, driven by robust demand for its diverse product lines, showcasing the company's competitive edge in AI data center connectivity solutions.
- Expanding Market Opportunity: Astera Labs anticipates its addressable market will grow tenfold over the next five years to $25 billion, indicating significant long-term growth potential as AI infrastructure continues to scale.
See More
Hyperscalers' AI Spending Surge Raises Market Concerns
- Spending Plans Overview: Alphabet plans to increase its AI spending from $91 billion in 2025 to $180 billion by 2026, while Microsoft reported $37.5 billion in Q2 2023, up from $34.9 billion in Q1, and Amazon aims to raise its spending to $200 billion in 2026, indicating a strong commitment to AI investments.
- TSMC's Market Outlook: Taiwan Semiconductor Manufacturing Company (TSMC) expects its capital expenditures to rise from $41 billion in 2025 to $54 billion, with management highlighting increased capacity to meet demand during the Q4 earnings call, leading to positive market sentiment regarding its potential benefits from the AI spending surge.
- Nvidia's Growth Potential: As a leading GPU provider, Nvidia's cloud products are sold out, and it anticipates AI spending could reach $3 to $4 trillion over the next decade, with management asserting that the company is still in the early stages of AI development and will continue to launch more powerful products to maintain its competitive edge.
- Applied Digital's Successful Pivot: Applied Digital has shifted from crypto-mining to AI infrastructure, securing a $5 billion long-term contract over 15 years, and despite currently being unprofitable, it reported a 250% year-over-year sales increase in Q2 2026, indicating strong market demand and positioning for future growth.
See More
GoDaddy's Stock Buybacks and Growth Outlook
- Consistent Profitability: GoDaddy has achieved non-GAAP profitability every year since 2017, with projected revenue of around $5 billion for 2025, reflecting its stability and resilience in a competitive tech landscape.
- Market Growth Potential: Global website registrations reached 386.9 million in Q4 2025, with the web hosting industry expected to grow at an average annual rate of over 23% to $356 billion, positioning GoDaddy to benefit significantly from this expansion.
- AI-Driven Innovation: GoDaddy's recent update to its generative AI site-building platform, Airo, has driven a 10% year-over-year increase in average revenue per user (ARPU), likely enhancing the company's high-margin revenue and cash flow.
- Stock Buyback Strategy: In the first three quarters of 2025, GoDaddy repurchased $1.4 billion worth of 137 million shares, bringing its total buyback to $5.2 billion over four years, which has propelled per-share profit growth and reflects the company's confidence in its value.
See More
Applied Digital Stock Volatility Analysis
- Stock Fluctuation: Applied Digital's stock gained 37% as of the last close, driven by a strong earnings report in January, but slumped over 8% in pre-market trading on Wednesday after Nvidia disclosed its exit from the stake, indicating volatility in market confidence.
- Investor Sentiment Improvement: Despite Nvidia's sale of a $177 million stake, retail sentiment on Stocktwits improved from 'extremely bearish' to 'bearish', suggesting a potential shift in market perception that could attract more investor interest in Applied Digital.
- Analyst Perspective: Roth Capital reiterated its 'Buy' rating with a $58 price target for Applied Digital, asserting that Nvidia's exit does not alter the fundamental business outlook, and may even present an attractive entry point for investors amid the stock's decline.
- Long-Term Lease Agreements: Applied Digital reported securing billions in long-term leases, including a $5 billion agreement with a U.S.-based hyperscaler for 200 MW at its Polaris Forge 2 campus, highlighting strong demand and growth potential in the market.
See More
Software Stocks Decline, Financials Support Market Stability
- Software Stock Pressure: Concerns over AI tools potentially disrupting existing business models led to significant declines in software stocks, with Palo Alto Networks dropping over 8% in after-hours trading, reflecting market caution towards tech equities.
- Strong Financial Performance: Despite the pressure on software stocks, financials like Citigroup and JPMorgan Chase rose by 2.7% and 1.5% respectively, helping to limit overall market losses and pushing major indexes into positive territory at the close, demonstrating resilience in the financial sector.
- Cautious Market Sentiment: U.S. stock futures slipped late Tuesday, with Nasdaq 100 futures down 0.2% and S&P 500 futures down 0.1%, indicating investor caution ahead of upcoming Fed minutes and key economic data releases.
- Trade Agreement Progress: The first projects under the U.S.-Japan trade deal have been approved, covering oil and gas, power generation, and critical minerals, marking the initial deployment of Japan's $550 billion investment commitment, which could positively impact related industries.
See More
Nvidia Exits Investment in Applied Digital
- Shareholding Changes: As of December 31, 2025, Nvidia sold its $177 million stake in Applied Digital, causing the company's stock to tumble nearly 8% in after-hours trading, reflecting market concerns about its future prospects.
- Investment History: Nvidia's initial investment of $160 million in Applied Digital in September 2024 aimed to bolster its AI infrastructure, but the recent exit indicates a waning confidence in the project's viability.
- Market Reaction: Over the past 24 hours, sentiment on Stocktwits regarding APLD has remained extremely bearish, with low message volumes indicating a lack of investor confidence in the tech sector, despite some urging to 'buy the dip'.
- Other Investment Dynamics: Nvidia's latest 13F filing reveals not only its exit from Applied Digital but also increased positions in Intel, Nokia, and Synopsys, while divesting from Arm Holdings and Recursion Pharmaceuticals, indicating a significant portfolio shift.
See More
Global AI Data Center Market Set for Rapid Growth
- Market Growth Potential: The global AI data center market is projected to grow from $236.4 billion in 2025 to $933.8 billion by 2030 at a CAGR of 31.6%, indicating strong demand for high-performance chips and purpose-built data centers, enhancing long-term investment value for related companies.
- Applied Digital Progress: Applied Digital's Polaris Forge 1 data center has commenced operations with the first 100-megawatt facility online, and full capacity of 400 megawatts is expected by 2027, with total contracts worth $16 billion, providing strong revenue visibility and stable cash flow.
- Astera Labs Financial Performance: Astera Labs reported a 92% year-over-year revenue increase to $270.6 million in Q4 FY2025, driven by robust demand for its diverse product lines, showcasing the company's competitive edge in AI data center connectivity solutions.
- Expanding Market Opportunity: Astera Labs anticipates its addressable market will grow tenfold over the next five years to $25 billion, indicating significant long-term growth potential as AI infrastructure continues to scale.
See More
Hyperscalers' AI Spending Surge Raises Market Concerns
- Spending Plans Overview: Alphabet plans to increase its AI spending from $91 billion in 2025 to $180 billion by 2026, while Microsoft reported $37.5 billion in Q2 2023, up from $34.9 billion in Q1, and Amazon aims to raise its spending to $200 billion in 2026, indicating a strong commitment to AI investments.
- TSMC's Market Outlook: Taiwan Semiconductor Manufacturing Company (TSMC) expects its capital expenditures to rise from $41 billion in 2025 to $54 billion, with management highlighting increased capacity to meet demand during the Q4 earnings call, leading to positive market sentiment regarding its potential benefits from the AI spending surge.
- Nvidia's Growth Potential: As a leading GPU provider, Nvidia's cloud products are sold out, and it anticipates AI spending could reach $3 to $4 trillion over the next decade, with management asserting that the company is still in the early stages of AI development and will continue to launch more powerful products to maintain its competitive edge.
- Applied Digital's Successful Pivot: Applied Digital has shifted from crypto-mining to AI infrastructure, securing a $5 billion long-term contract over 15 years, and despite currently being unprofitable, it reported a 250% year-over-year sales increase in Q2 2026, indicating strong market demand and positioning for future growth.
See More
GoDaddy's Stock Buybacks and Growth Outlook
- Consistent Profitability: GoDaddy has achieved non-GAAP profitability every year since 2017, with projected revenue of around $5 billion for 2025, reflecting its stability and resilience in a competitive tech landscape.
- Market Growth Potential: Global website registrations reached 386.9 million in Q4 2025, with the web hosting industry expected to grow at an average annual rate of over 23% to $356 billion, positioning GoDaddy to benefit significantly from this expansion.
- AI-Driven Innovation: GoDaddy's recent update to its generative AI site-building platform, Airo, has driven a 10% year-over-year increase in average revenue per user (ARPU), likely enhancing the company's high-margin revenue and cash flow.
- Stock Buyback Strategy: In the first three quarters of 2025, GoDaddy repurchased $1.4 billion worth of 137 million shares, bringing its total buyback to $5.2 billion over four years, which has propelled per-share profit growth and reflects the company's confidence in its value.
See More
