Why Applied Digital Stock Plummeted Today

The Motley Fool·03/03/2025 21:36:00

Listen to the news

Applied Digital (NASDAQ: APLD) stock got hit with another round of big sell-offs in Monday's trading. The company's share price dropped 14% by the time the market closed.

Tech stocks were rocked following some bearish news for Nvidia and other artificial intelligence (AI) stocks. Applied Digital stock often makes big moves in conjunction with valuation shifts for Nvidia, and its share price tumbled lower today.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

AI stocks tumble on Nvidia export-ban violation news

Nvidia and other AI stocks are seeing strong bearish momentum today following reports that the company's most advanced processors are still being sold into China despite export bans. The chips are reportedly included in servers that have been sold by third-party sellers, and it's possible that this could result in additional restrictions being put on advanced semiconductors and chip manufacturing equipment. The Trump administration was already said to be ramping up export restrictions on the category, and it wouldn't be surprising to see some action on that front in the not-too-distant future.

What's next for Applied Digital?

While Applied Digital operates its data centers in the U.S., its business and valuation could wind up facing headwinds related to trade wars and escalating tensions between the U.S. and China. Artificial intelligence has emerged as a key competitive battleground for the two countries, and it will almost certainly continue to be an axis that relations continue to revolve around.

In addition to geopolitical news, macroeconomic trends, and its own business results, Applied Digital will probably continue to see sympathetic trading with Nvidia stock. Nvidia is invested in the data center specialist, and Applied Digital also uses the AI hardware leader's processors to power its services.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

FAQ

Fee Schedule Open Account Deposit & Withdrawal Trading

Terms & Conditions

Client Agreement Privacy Policy Data Disclaimer Security Tips

About Webull

About us Webull Promotions Contact information Announcements

Service Email : service@webull.hkBusiness Cooperation : marketinghk@webull.hk

Risk Disclosure: The content of this page is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. All investments involve risk and the past performance of securities, or financial products does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. For more details, please refer to risk disclosure.
① During the campaign period, US stocks, US stocks short selling, US stock options, Hong Kong stocks, and A-shares trading will maintain at $0 commission, and no subscription/redemption fees for mutual fund transactions. $0 fee offer has a time limit, until further notice. For more information, please visit: https://www.webull.hk/pricing
② More than 40M Downloads Globally : data based on Webull Technologies Limited's internal statistics as of July 14, 2023.
Webull Securities Limited is licensed with the Securities and Futures Commission of Hong Kong (CE No. BNG700) for carrying out Type 1 License for Dealing in Securities, Type 2 License for Dealing in Futures Contracts and Type 4 License for Advising on Securities.

Language

English