Shares of Applied Digital (NASDAQ: APLD) dropped 13.1% this week, while the S&P 500 and Nasdaq-100 saw gains. The AI data center company secured a 150MW lease agreement with CoreWeave, raising concerns about valuation and financing. Applied Digital faces the challenge of building and financing three new data centers. The company’s market cap is $3.6 billion, while the lease revenue is anticipated to be around $11 billion over 15 years. Risks include high debt and reliance on a single customer. Analysts advise caution in investing in Applied Digital and CoreWeave stocks.

Read more at Nasdaq: Why Did Applied Digital Stock Plummet This Week?