We recently published a list of Top 5 AI News Moving The Market Today. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against other top AI news moving the market today.
Investors continue to pour back into Big Tech stocks after the US government announced temporary tariff relief. For many, this is a signal that the technology sector may not suffer much, and further relief could follow. This is moving the major tech stocks and, with it, the index. The S&P and Nasdaq indices are both up over 4% in the last five trading sessions.
Apart from the tariff developments, some companies are moving based on company-specific news as tech players continue to race ahead in the race for AI supremacy. Some of these companies are surging considerably and still have ample room to go, so you need to look at these developments before the market prices them in.
To come up with our list of top 5 AI news you may have missed, we carefully considered the recent news reports and press releases while ordering the list based on hedge fund sentiment.
An overhead view of a large-scale data center with rows of servers and blinking lights.
Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 42
Applied Digital Corporation serves the AI infrastructure and high-performance computing (HPC) industries. It operates through three segments: HPC, Cloud Services, and Data Center Hosting Business. After more than quadrupling in share price last year, the company has already lost half its value in 2025. Things are now getting worse, with the stock set to open down as much as 15% today.
The reason for the price crash is the company’s quarterly earnings report. The firm reported $52.9 million in revenue, driven largely by the $35.2 million contributed by its data center segment. The revenue came in lower than expectations as clients continue to delay renewing their data center leases. The rising power costs are also impacting the firm’s margins negatively.
The first building of the company’s Ellendale campus is set to come online by the end of this year. APLD could lease out parts of the building in order to maximize the utilization of the equipment installed at the facility. The enhanced HPC data center capacity should continue to drive the company’s growth in the near term.
Management was also confident about the Cloud Services Business segment, though a potential sale of this part of the business could negatively impact the firm’s relationship with its clients. Apart from the delay in lease renewal from some clients, APLD is also finding it hard to acquire clients for its Ellendale campus, something that continues to worry analysts.
Overall, APLD ranks 3rd on our list of top AI news moving the market today. While we acknowledge the potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than APLD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
