New York, Jan 28, 2026, 13:12 ET — Regular session
Shares of Applied Digital Corp dropped roughly 5% on Wednesday, retreating after a sharp rally fueled by AI data-center demand buzz. The stock slipped 5.2% to $39.19, having earlier hit an intraday peak of $42.60.
The pullback follows a strong rally in Applied Digital, which closed at $41.35 on Tuesday, up from $36.18 the previous day, per Yahoo Finance historical data. Investors had been piling into names linked to CoreWeave after Reuters disclosed that Nvidia invested $2 billion in the cloud company and broadened their collaboration. (Yahoo Finance)
Applied Digital’s connection to CoreWeave goes beyond just being a theme stock — CoreWeave is an actual customer. Back in June, Applied Digital announced two 15-year leases with CoreWeave projected to bring in around $7 billion in revenue over that period. This deal positioned the company as a play on AI infrastructure expansion without directly purchasing chips. (Reuters)
CoreWeave shares slipped roughly 3% on Wednesday, while Nvidia gained around 1.6%. That left smaller suppliers and landlords to take the brunt of the selling pressure. These shifts highlight how fast the “AI buildout” trade can rotate—from chips to power, land, and racks—as investor focus changes.
On Monday, Nvidia and CoreWeave announced plans to ramp up their partnership, aiming to develop over 5 gigawatts of “AI factories” by 2030—massive data-center hubs designed to house clusters of AI chips. Nvidia also disclosed a $2 billion investment in CoreWeave shares. Nvidia CEO Jensen Huang described the effort as “the largest infrastructure buildout in human history,” while CoreWeave CEO Michael Intrator emphasized, “AI succeeds when software, infrastructure, and operations are designed together.” (CoreWeave)
Applied Digital is ramping up its “AI factory” concept. The company announced last week that it broke ground on Delta Forge 1, a new campus built to handle 430 megawatts of utility power — sourced from the grid — with initial operations slated for mid-2027. CEO Wes Cummins emphasized, “AI Factories succeed or fail based on how effectively power, cooling and operations are integrated.” (Applied Digital Corporation)
Applied Digital’s fundamentals have drawn attention this month. The company posted fiscal second-quarter revenue of $126.6 million, surpassing analysts’ $88 million forecast, Reuters reported on Jan. 7. The boost came as demand for AI workloads increased utilization at its large-scale facilities. It also highlighted ongoing long-term leases with “hyperscalers”—major cloud providers with strong balance sheets—across its North Dakota campuses. (Reuters)
But the trade cuts both ways. Applied Digital cautioned in filings that “the timely completion” of its high-performance computing and AI projects “may be delayed,” and its ability to generate revenue “may be compromised.” This highlights how power hookups, construction timelines, and customer schedules can all impact results. (Reuters)
Investors are now focused on whether CoreWeave’s recent Nvidia support will translate into additional leased capacity for partners. Applied Digital faces pressure to secure a tenant for Delta Forge 1 on terms that make its buildout worthwhile. Wall Street is anticipating the company’s next earnings report sometime near April 13, though Applied Digital hasn’t officially set a date. (Zacks)
