[Despite an 8% overnight slump, Roth Capital reiterated its ‘Buy’ rating with a $58 target for Applied Digital Corp. (APLD), citing intact fundamentals and billions in hyperscaler data center deals.][The dip followed NVIDIA‘s disclosed exit from its APLD stake, but analysts and retail sentiment framed the sell-off mostly as “headline risk” rather than a fundamental business change.][Retail trader mood on Stocktwits improved to ‘bearish’ from ‘extremely bearish’ as some argued major investment firms absorbed Nvidia’s sold shares, and APLD stock remains up 37% year-to-date.]
Applied Digital Corp. (APLD) stock faced significant volatility, dropping over 8% in overnight trading after Nvidia revealed it had sold its stake in the data center operator. However, analysts at Roth Capital quickly framed the decline as a potential buying opportunity, arguing the core investment thesis remains strong. Consequently, the firm reaffirmed its $58 price target and ‘Buy’ rating in an investor note summarized by The Fly.
The research firm stated the sell-off stems more from “headline risk than any fundamental change.” Roth Capital specifically highlighted Applied Digital’s progress in securing major hyperscaler deals, including a new co-location lease with CoreWeave and a third imminent agreement. This aligns with the company’s recent announcement of a $5 billion, 200 MW lease with a U.S.-based hyperscaler.
Meanwhile, retail trader sentiment on Stocktwits warmed slightly, moving to ‘bearish’ from ‘extremely bearish’ as users debated the news. Some members noted that investment firms like Vanguard and BlackRock acquired Nvidia’s former $177 million stake. Applied Digital’s stock, lifted by a strong January earnings report, is still up 37% this year.
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