Applied Digital (APLD) Falls 9% on Investment Firms' Growing AI Concerns

We recently published 10 Big Names Investors Are Dumping. Applied Digital Corp. (NASDAQ:APLD) is one of the worst performers on Wednesday.

Applied Digital slashed its share prices by 9.24 percent on Wednesday to close at $22 apiece as investors turned increasingly wary about the AI industry, supported by an investment firm’s withdrawal of its financial support for one of Oracle Corp.’s data center projects.

On the same day, a report said that Blue Owl Capital backed out from a plan to support Oracle’s data center through a $10 billion data center, a claim which the latter confirmed, but underscored that construction remains on track.

The bad news spilled over to AI-linked companies, including Applied Digital Corp. (NASDAQ:APLD), as investors grew increasingly concerned that financial institutions may be turning more cautious about funding capital-intensive AI projects.

In other news, Applied Digital Corp. (NASDAQ:APLD) announced in a blog post shared Monday that it was in talks with companies for three of its data center campuses.

“We’re negotiating for two or three other campuses at the moment. The demand just keeps coming,” Applied Digital Corporation (NASDAQ:APLD) CEO Wes Cummins was quoted as saying in an interview shared on the firm’s social media.

It was unclear whether the negotiations were for a potential leasing partnership or a fundraising activity, but investors took the announcement as a cue about its ongoing expansion program.

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