APLD stock has dropped 24% in 3 months due to market weakness, but has strong growth potential in data center business and partnerships with tech giants.

From Nasdaq: 2025-03-28 11:37:00

Applied Digital Corporation (APLD) shares have fallen 23.5% in the last three months, underperforming the Finance sector’s 4% growth. The decline is due to market weakness, not company-specific issues. Despite the recent stock price drop, APLD is trading at a premium with high valuation ratios compared to the industry.

APLD’s data center business, focused on AI applications and crypto mining, is thriving. The company benefits from Bitcoin’s price surge and its expertise in building AI data centers. APLD is expanding its capacity with new facilities, positioning itself for future growth in the data center market.

The company has strong partnerships with tech giants like Super Micro Computer, Hewlett Packard Enterprise, and NVIDIA. These partnerships support APLD’s operations and growth. NVIDIA alone owns a significant stake in APLD, highlighting confidence in the company’s potential.

Despite the recent stock price decline, APLD is poised to rebound due to its robust data center business and strong partnerships. Investors are advised to hold onto this Zacks Rank #3 (Hold) stock for now. APLD’s growth potential in the data center market and partnerships with key tech companies make it a stock worth watching.



Read more at Nasdaq: Should You Hold on to APLD Stock Despite its 24% Dip in 3 Months?