Renewed Trade Tensions Drive Volatility in EV and AI Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Benzinga
- Increased Market Volatility: Renewed tariff uncertainties tied to U.S. policy towards Europe have significantly heightened volatility in EV and AI stocks, with Lucid Group Inc (NASDAQ:LCID) surging over 18% on Wednesday, while Nebius Group NV (NASDAQ:NBIS) has dropped around 9% this week.
- Investor Confidence Shaken: The prevailing uncertainty has tested investor conviction, particularly after AI infrastructure stocks reached all-time highs last year, leading to a noticeable split between long-term believers and short-term skeptics in the market.
- Technical and Sentiment Driven: Recent market fluctuations are viewed as being more influenced by technical factors and market sentiment rather than fundamentals, as positive news struggles to sustain rallies in an environment dominated by macro uncertainty.
- Cycle Issues Highlighted: Tariffs act as a trigger rather than a root cause of volatility, revealing the positioning of EV and AI stocks within their cycles, prompting investors to focus on the overall market cycle rather than individual tariff announcements.
Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APLD is 49.18 USD with a low forecast of 36.00 USD and a high forecast of 99.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 36.180
Low
36.00
Averages
49.18
High
99.00
Current: 36.180
Low
36.00
Averages
49.18
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.
