Applied Digital shares fall to $16.95 amid AI stock turmoil
Key Facts
Applied Digital shares closed at $16.95 on November 12, compared with $17.91 in the previous session, amid a sell-off in companies tied to AI infrastructure. Reuters reported that data-center stocks, including Applied Digital, fell between 3% and 5% during the session. The moves coincided with Nebius saying it expected 2026 revenue at the low end of its previous range and Nvidia announcing the resignation of its chief executive, Jensen Huang. Nvidia and Nebius shares fell sharply in the same session, while shares of other companies in the sector rose. The moves placed Applied Digital within a broader sell-off in AI infrastructure stocks.
Nebius said in its CEO's letter to shareholders that it now expected 2026 revenue at the low end of a range of $3.0 billion to $3.4 billion. The company attributed the revision to some current-year revenue shifting to early next year. It said in the letter: "Some of this year's revenue is shifting to the early part of next year." The company's explanation points to a delay in revenue timing, while its outlook range for the current year remained in place, with revenue expected at its low end. Nebius shares fell 17% in the November 12 session, Reuters reported, following the outlook announcement.
Nebius also forecast 2027 revenue of $12 billion to $13 billion, saying the range reflected a conservative approach to the pace of expansion. The company wrote: "We expect revenue of $12 billion to $13 billion, reflecting a conservative approach to the pace of expansion." Third-quarter results showed revenue rising to $980.8 million from $146.1 million in the same period of 2025. The company also reported operating income of $50.4 million, after an operating loss of $130.2 million a year earlier. These figures provide context for the growth outlook, while the market's response in the session focused on revenue shifting into next year.
Nvidia announced that Jensen Huang had resigned as chairman, chief executive and board member, effective immediately, and named Chief Financial Officer Colette Kress interim chief executive. The company said its board had begun a search for a permanent CEO and would consider candidates from inside and outside the company. Nvidia shares fell 7.6% on November 12, as investors worried about the impact of Huang's departure on the sector, Reuters reported. But the session's moves were not uniform among chipmakers: AMD and Broadcom shares rose 4.3% and 5.5%, respectively. The share moves came as data-center companies faced pressure alongside the Nebius and Nvidia news.
Applied Digital shares had risen about 9.4% in morning trading on November 11 as AI data-center and cloud-computing stocks advanced, following a positive session for the Nasdaq, according to Investing.com. In a November 12 report, Investing.com linked pressure on infrastructure stocks to concerns about Nebius's projected 2027 capital spending, which the report put at $40 billion to $45 billion, and concerns about the sustainability of cloud-computing spending. The report said about 800 megawatts of Applied Digital's planned power capacity still needed financing. It also cited Morgan Stanley's November 9 cut to its price target on the stock from $41 to $25, while maintaining an Equal Weight rating. These factors point to financing and sentiment pressures that preceded the November 12 session, alongside the sector-related sell-off.
On expansion, Applied Digital announced on October 6 that it had secured up to 1 gigawatt of potential power capacity in Finland, its first development in the Nordic countries. The company held its fiscal 2027 first-quarter earnings call on October 7, while its investor-relations calendar currently shows no upcoming scheduled events. At the sector level, Nvidia set November 17 as the date for its fiscal 2027 third-quarter results. This follows a session in which the company's shares fell sharply and data-center stocks came under pressure, while some chipmakers performed differently. The upcoming reporting dates put Nvidia's results among the next key events for investors following the sector.