Why Applied Digital Corporation (APLD) Soared Last Week

We recently compiled a list of the 10 Companies That Performed Well Last Week. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against the other stocks.

The stock market fell heavily into the red territory on Friday as investors sold off positions to mitigate risks from a series of macroeconomic factors.

The Dow Jones declined by 1.69 percent, the S&P dropped by 1.71 percent, and the tech-heavy Nasdaq nosedived by 2.20 percent.

Despite the broader market downturn, ten companies gained momentum, recording price growths on a week-on-week basis.

We have listed 10 companies that performed well last week. Note that shares performances were based on closing prices last Friday, February 21, as against their prices on February 14, or a week earlier.

To come up with last week’s advancers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

An overhead view of a large-scale data center with rows of servers and blinking lights.

Applied Digital Corporation (NASDAQ:APLD)

Shares of Applied Digital Corporation (NASDAQ:APLD) jumped by 16.9 percent week-on-week, ending at $10.65 on Friday versus the $9.11 on February 14 after earning a boost from Nvidia Corp. (NVDA) CEO Jensen Huang’s comments that investors got the wrong conclusion about DeepSeek that shook up US stocks over the past few weeks.

In addition, investor sentiment was boosted by NVDA’s recent regulatory filing which showed that Applied Digital Corporation (NASDAQ:APLD) was one of the handful companies that it is directly invested in.

Comments and actions from NVDA, a giant chipmaker that played a pivotal role in the growth of OpenAI’s ChatGPT and whose influence extends beyond semiconductor expertise, have long been on the investors’ radar, with its investments in various technology sectors positioning itself at the forefront of the digital revolution.

Overall APLD ranks 5th on our list of the companies that performed well last week. 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 timeframe. 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 the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.