Why Did Applied Digital Stock Jump 14.3% Today?
Key Points
Applied Digital shares jumped after Nvidia announced a $2 billion investment in CoreWeave, a key customer of Applied Digital.
The Nvidia-CoreWeave deal helps calm investor worries about whether Applied Digital's heavily leveraged customer base can fulfill financial commitments.
- 10 stocks we like better than Applied Digital ›
Shares of Applied Digital (NASDAQ: APLD) spiked on Tuesday, finishing the day up 14.3%. The dramatic move came as the S&P 500 gained 0.4% and the Nasdaq Composite rose 0.9%.
The artificial intelligence (AI) data center operator's stock is flying on news of Nvidia's investment in one of Applied Digital's closest partners.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Nvidia announces a major CoreWeave investment
Nvidia, the company at the very heart of the AI boom, announced late yesterday that it is expanding its backing of *CoreWeave*, the AI-first cloud computing operator. The chipmaker purchased $2 billion in Class A shares of CoreWeave at an average price of $87.20 per share as part of an expanded partnership.
Image source: Getty Images.
What that means for Applied Digital
As a key partner of CoreWeave, this was a big win for Applied Digital as well, helping alleviate fears that the heavily leveraged company's core customers won't be able to make good on their commitments.
While this certainly is a major sign of confidence from Nvidia, I still have serious doubts about CoreWeave's long-term sustainability -- and therefore, Applied Digital. I would still treat both of these stocks as speculative and remain cautious.
Should you buy stock in Applied Digital right now?
Before you buy stock in Applied Digital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Digital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $462,174!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,143,099!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 27, 2026.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
