What's Going On With Applied Digital Stock?
Shares of Applied Digital Corporation (NASDAQ:APLD) are trading lower on Wednesday after SEC filings revealed that Nvidia sold its entire stake in the data center company.
- Applied Digital stock is trending lower. What’s driving APLD stock lower?
Nvidia Sells $177 Million Worth Of Shares
Nvidia’s decision to divest its $177 million stake in Applied Digital significantly impacted the stock, as Nvidia is a major player in the technology sector and its holdings are seen as a vote of confidence. Nvidia originally invested in Applied Digital in 2024, helping spark momentum that saw Applied Digital stock gain around 240% over the past year.
Applied Digital designs, develops and operates digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
Nvidia previously held 7,716,050 shares in the company. The filing, which was released after the market closed Tuesday, also revealed that Nvidia dropped stakes in WeRide and Arm Holdings.
Applied Digital Stock Remains Robust
Over the past 12 months, Applied Digital’s stock has surged by 240%, demonstrating significant long-term growth. Currently, the stock is trading 7.2% below its 20-day SMA of $35.79 and 3.7% above its 50-day SMA of $32.04. This positioning indicates recent underperformance.
The technical indicators show mixed signals; the RSI stands at 48.21, suggesting neutral market momentum, while the MACD is below its signal line, indicating bearish pressure. These indicators suggest that investors are cautious, reflecting uncertainty about the stock’s immediate direction.
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $30.80. Recent analyst moves include:
- B. Riley Securities: Buy (Raises Target to $53.00) (Jan. 9)
- Roth Capital: Buy (Raises Target to $58.00) (Jan. 8)
- Needham: Buy (Maintains Target to $41.00) (Jan. 8)
Stock Trades Lower In Regular Hours
APLD Price Action: Applied Digital shares were down 2.18% at $32.83 at the time of publication on Wednesday, according to Benzinga Pro data.
Image: Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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