Applied Digital (APLD) Sold Down As Investors Turn Cautious

We recently published a list of 10 Stocks Investors Dumped Fast. In this article, we are going to take a look at where Applied Digital Corporation (NASDAQ:APLD) stands against other worst-performing stocks.

Applied Digital dropped its share prices by 6.06 percent on Monday to finish at $13.02 apiece as investors sold off positions while waiting for more concrete developments from the US-China trade talks.

Last week, Applied Digital Corporation (NASDAQ:APLD) earned a boost from two 15-year lease contracts with CoreWeave, Inc. (NASDAQ:CRWV), under which the former will deliver 250 megawatts of critical IT load to host the latter’s artificial intelligence (AI) and high-performance computing (HPC) infrastructure at its Ellendale, North Dakota data center campus.

Monday’s performance, however, suggested that the news had already been priced in by investors, and that they are now looking for more catalysts to boost buying appetite.

Pursuant to the lease contracts, CoreWeave, Inc. (NASDAQ:CRWV) also retains the option to access an additional 150 MW of critical IT load at Ellendale, positioning the campus as a scalable hub for expanding AI and HPC workloads.

Applied Digital is expected to deliver the first 100 MW of data center in the fourth quarter of the year, while the remaining 150 MW is expected to come online in the middle of 2026.

Overall, APLD ranks 7th on our list of worst-performing stocks. 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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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