Why Applied Digital Stock Plummeted This Week

Core Insights - Applied Digital's stock experienced a significant decline of 24.3% in a week, reflecting broader bearish trends in the AI sector and macroeconomic concerns [1][2][5] Company Performance - The company's share price fell sharply following Nvidia's earnings report, which led to a sell-off in AI stocks despite Nvidia's strong quarterly results [1][5] - Applied Digital is closely tied to Nvidia, as it is one of the few companies in which Nvidia has direct investments, resulting in correlated stock movements [4] Macroeconomic Factors - Recent indicators of inflation and macroeconomic health have been worse than expected, contributing to investor anxiety and selling pressure on AI stocks [2] - The Trump administration's plans to introduce new tariffs on Canada and Mexico, along with potential export restrictions on AI chips to China, have raised concerns about increased hardware costs for Applied Digital [3]