Applied Digital Corporation Slides as Nvidia Bows Out

Applied Digital Corporation ( (APLD) ) has fallen by -10.63%. Read on to learn why.

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Applied Digital Corporation endured a volatile week, with its share price sliding 10.63% as investors digested a major shift in its shareholder base. The trigger was Nvidia’s disclosure that it had fully exited its roughly $177 million stake in the company, a surprise move that shook confidence in what many had viewed as a strategic partnership. The stock’s drop, including a sharp after-hours selloff, reflects investor concern that the loss of such a high-profile backer could signal changing expectations around Applied Digital’s long-term growth story.

Derivatives trading underlined the market’s uncertainty. Option activity was heavy, with calls still outnumbering puts, but the tone grew more cautious as traders looked for protection against further declines. Implied volatility stayed elevated but eased from earlier peaks, while a steeper put‑call skew showed rising demand for downside hedges. This mix of bullish call interest and stronger put buying points to a split view: some traders are betting on a rebound, while others are bracing for more pressure in the near term.

Fundamentally, however, analysts remain upbeat on Applied Digital Corporation despite the week’s setback. The company is building out large-scale data centers aimed at AI and high-performance computing clients, backed by a $5 billion Macquarie financing facility that could support $20–$25 billion in total capital deployment. With more than 9 gigawatts in its development pipeline, a growing roster of potential hyperscale customers, and strong “Buy” ratings from Wall Street with price targets well above current levels, the negative reaction to Nvidia’s exit is being framed by bulls as a short-term overhang rather than a thesis-breaking event.