Nvidia Exit Prompts Fresh Look At Applied Digital Volatility And Upside Potential

• Nvidia fully exited its position in Applied Digital (NasdaqGS:APLD), according to recent regulatory filings.
• The sale occurred shortly before a decline in Applied Digital's share price.
• The move removes a high profile AI and semiconductor name from Applied Digital's shareholder base.

Applied Digital's shares trade at $33.56, following a 10.4% decline over the past week and a 10.3% decline over the past month. Even after that pullback, the stock is still up 19.4% year to date and shows a very large gain over the past year, reflecting how volatile sentiment around AI infrastructure names can be.

Nvidia's exit may prompt investors to reassess how they view major partner and institutional involvement around NasdaqGS:APLD. As more information becomes available on why the stake was sold and how the company responds, investors can watch for any shifts in Applied Digital's positioning, funding relationships or capital plans in the AI infrastructure space.

Stay updated on the most important news stories for Applied Digital by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Applied Digital.

See which insiders are buying and buying and selling Applied Digital following this latest news.

Quick Assessment

• ✅ Price vs Analyst Target: At $33.56, Applied Digital trades around 26% below the US$45.27 consensus price target.
• ⚖️ Simply Wall St Valuation: Simply Wall St's DCF view is currently unknown, so treat this as an open question rather than a clear signal.
• ❌ Recent Momentum: The stock has fallen about 10.3% over the last 30 days.

There is only one way to know the right time to buy, sell or hold Applied Digital. Head to Simply Wall St's company report for the latest analysis of Applied Digital's Fair Value.

Key Considerations

• 📊 Nvidia exiting removes a high profile holder, so you may want to reassess how much weight you place on big name backing in your thesis.
• 📊 Track whether ownership changes, capital raises or new partnerships follow this move, given the share price is well below the US$45.27 target range midpoint.
• ⚠️ The stock has been highly volatile recently, so position sizing and risk limits are particularly important if you are considering exposure here.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Applied Digital analysis. Alternatively, you can check out the community page for Applied Digital to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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