What Happened?
Shares of digital infrastructure provider Applied Digital (NASDAQ: APLD) jumped 14.9% in the afternoon session after the company announced it secured $100 million in financing to fund the development costs for new data center projects.
The loan facility was established with Macquarie Group to support the initial planning, permitting, and early construction of several new data center campuses. These new sites were being built for an unnamed "investment-grade hyperscaler," a term for a large cloud services company. The funds provided the company with capital to advance its high-quality sites. Applied Digital's stock also appeared to benefit from a broader rally in cloud infrastructure stocks, which were recovering from a recent sell-off.
The shares closed the day at $27.74, up 15.6% from previous close.
Is now the time to buy Applied Digital? Access our full analysis report here.
What Is The Market Telling Us
Applied Digital’s shares are extremely volatile and have had 92 moves greater than 5% over the last year. But moves this big are rare even for Applied Digital and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 6.1% on the news that a broader sell-off in the artificial intelligence (AI) infrastructure sector amid concerns over high valuations and potential share dilution. The stock's drop was part of a wider market pessimism for AI-related companies, as investors grew worried about heavy spending in the sector and how quickly those investments might be recouped.
Applied Digital is up 259% since the beginning of the year, but at $28.03 per share, it is still trading 25.8% below its 52-week high of $37.76 from October 2025. Investors who bought $1,000 worth of Applied Digital’s shares 5 years ago would now be looking at an investment worth $108,624.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
