Why Applied Digital Stock Soared Today

Applied Digital (NASDAQ: APLD) stock recorded a day of strong gains in trading Wednesday. The data center specialist's share price closed out the daily session up 11.1%. Meanwhile, the S&P 500 index ended the day up 1.1%, and the Nasdaq Composite index ended the session up 1.4%.

Applied Digital's valuation rose today amid news about Microsoft and Meta Platform's big pushes in agentic artificial intelligence (AI) solutions. The company's share price also got a boost from a significant adjustment to tariff policies for automobiles imported from Mexico and Canada.

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Applied Digital rises as Microsoft and Meta's moves signal strong data center demand

Microsoft and Meta are gearing up for big growth initiatives in the agentic AI space, and the pushes could be a bullish demand indicator for Applied Digital. New media coverage today is highlighting Microsoft and Meta's moves to become big players in agentic AI services, which use adaptive software to automate business operations, including sales, marketing, and customer service. While there's no indication that big agentic AI bets from the two companies will provide any material sales boost for Applied Digital, they do suggest a positive demand signal for data center services and artificial infrastructure build-outs.

Applied Digital stock also got a big boost from tariff news

The market has been worried about industry-specific and broader macroeconomic impacts from new tariff policies implemented by the Trump administration. But news arrived today that qualifying automobiles would be excluded from the new 25% tariffs on goods imported from Mexico and Canada that have recently been implemented -- at least for a one-month window.

Tariffs on auto imports probably won't have any substantial impact on Applied Digital's business, but they do have implications for the broader stock market. Some investors, economists, and industry analysts viewed the new import taxes as a potentially disruptive catalyst for the auto market -- and one that could have broader macroeconomic impacts. With new tariffs on imported autos from Canada and Mexico being pushed out a month, investors saw a more favorable valuation outlook for Applied Digital and other growth stocks.

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Keith Noonan 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.