Stock Market Today, Jan. 23: Applied Digital Jumps After Breaking Ground on New AI Factory

Applied Digital (NASDAQ:APLD), a next-generation artificial intelligence (AI) data center operator, closed Friday at $37.69, up 8.49%. The stock climbed after yesterday’s news that it had begun building a new “AI Factory,” reflecting demand for its purpose-built AI infrastructure.

Trading volume reached 47.5 million shares, about 52% above its three-month average of 30.1 million shares. Applied Digital IPO'd in 2022 and has grown over 700% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) and the Nasdaq Composite (NASDAQINDEX:^IXIC) barely moved today. The S&P 500 gained 0.03% to 6,915, and the Nasdaq gained 0.28% to close at 23,501.

Within cloud computing & data analytics, industry peers Core Scientific (NASDAQ:CORZ) closed up 3.93% at $18.79 and Digital Realty Trust (NYSE:DLR) gained 0.45% to end at $159.16, underscoring steady interest in data center and AI-linked names.

What this means for investors

Today’s increase for Applied Digital follows an extraordinary year in which the stock gained over 300%. The data center firm continued to rally even as Jim Cramer urged investors to take profits.

Today’s jump comes after yesterday’s announcement that the firm had broken ground on Delta Forge 1, a new AI factory campus in a Southern U.S. state. The 430MW AI factory is due to start operations in mid-2027.

Texas Capital also upgraded the stock from “Buy” to “Strong Buy.” Roth Capital and Needham both recently reiterated their “Buy” ratings.

Emma Newbery has positions in Digital Realty Trust. The Motley Fool has positions in and recommends Digital Realty Trust. The Motley Fool has a disclosure policy.