Applied Digital Corporation Sinks as Nvidia Walks Away

Applied Digital Corporation ( (APLD) ) has fallen by -9.10%. Read on to learn why.

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Applied Digital Corporation shares fell -9.10% over the past week, capping a turbulent stretch marked by shifting investor sentiment and heavy options activity. The stock, which traded around the high-$20 range, has been under pressure since Nvidia disclosed it had fully exited its roughly $177 million stake in the company. That surprise move rattled confidence in what many investors had seen as a strategic relationship, sparking a sharp selloff as the market reassessed Applied Digital’s long-term growth story without a marquee tech backer.

Trading in the derivatives market highlighted this uncertainty. Options volume was active, with calls still leading puts, but the tone turned more cautious as some traders sought downside protection. Implied volatility remained high, reflecting expectations of large daily price swings, while a flatter put‑call skew and mixed sentiment suggested a divided market: one camp positioning for a potential rebound, another bracing for further weakness. At the same time, insider sentiment has turned negative, with a notable director sale adding to worries about near-term pressure on the shares.

Despite the stock’s -9.10% weekly decline, the fundamental story has not entirely soured in the eyes of Wall Street. Applied Digital Corporation is rapidly expanding its data center footprint for AI and high-performance computing customers, supported by a sizeable Macquarie financing facility and a development pipeline of more than 9 gigawatts. Recent results showed revenue more than doubling year over year, while net losses have narrowed. Several analysts, including a 5-star Craig-Hallum analyst with a $40 price target, maintain Buy ratings, arguing that Nvidia’s exit is a temporary overhang on a business still positioned for substantial long-term growth.