Top 5 AI News Moving The Market Today

3. 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.