Nvidia Exits Investment in Applied Digital
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy APLD?
Source: stocktwits
- 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.
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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: 33.560
Low
36.00
Averages
52.22
High
99.00
Current: 33.560
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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- Significant Price Decline: Over the past 12 months, Recursion Pharmaceuticals has experienced a steep decline of 68.19%, highlighting ongoing challenges the company faces, prompting investors to remain vigilant against potential risks.
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- Price Performance Review: Over the past 12 months, Applied Digital's stock surged by 240%, yet it currently trades 7.2% below its 20-day SMA and 3.7% above its 50-day SMA, indicating recent underperformance and cautious investor sentiment regarding future trends.
- Technical Indicator Analysis: The current RSI stands at 48.21, suggesting neutral market momentum, while the MACD is below its signal line, indicating bearish pressure, reflecting investor uncertainty about the stock's short-term direction.
- Analyst Ratings & Targets: Despite facing pressure, Applied Digital maintains a Buy rating with an average price target of $30.80, with B. Riley and Roth Capital raising their targets to $53.00 and $58.00 respectively, indicating analysts' confidence in the company's long-term prospects.
See More
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- Earnings Beat: The company posted adjusted earnings of $1.03 per share, exceeding analyst estimates of 94 cents, demonstrating its continued profitability amidst fierce market competition.
- Guidance Downgrade: Palo Alto lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70, below the market estimate of $3.86, which may impact investor confidence.
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