Applied Digital falls 5.78% as cloud computing and chip stocks slide
Key Facts
U.S. companies tied to artificial intelligence fell again on Friday, Nov. 13, with specialized cloud providers among the hardest hit, according to a Reuters report. Applied Digital closed at $15.97, down 5.78% from the previous session’s close of $16.95, according to market data. Mid-session, Nebius was down 9% and CoreWeave was down 8.8%, Reuters reported. The pressure came as chip stocks also fell, amid turmoil following the resignation of Nvidia CEO Jensen Huang. The moves spread to technology indexes, putting AI infrastructure companies at the center of a broader repricing wave.
The Nasdaq-100 was down 2% during the session at the time of the Reuters report, while the Philadelphia Semiconductor Index fell 5.1%. AMD dropped 10.7% and Broadcom fell 5.9%, after each had gained for five straight sessions. The report estimated that Nasdaq-100 losses were on track to erase about $800 billion in market value if they held through the close, and that chip-index losses could exceed $560 billion that day. These were intraday estimates, not final closing figures. For the week, the S&P 500 fell 0.4% on Friday but rose 2.5% for the week, while the Nasdaq Composite declined 0.9% and posted its first weekly gain in five weeks.
Nebius shares closed at $115.88 on Nov. 13, down from $128.64 in the previous session, according to EL7 data. In its third-quarter shareholder letter, the company said some 2026 revenue had shifted to early 2027 because of delays in bringing certain capacity online. As a result, Nebius expects 2026 revenue to come in at the low end of its $3.0 billion to $3.4 billion range, with an adjusted EBITDA margin of about 40%. The company said: "With some of this year's revenue shifting to early next year, we now expect 2026 revenue to come in at the low end of our range." The letter says the shift in revenue timing is linked to capacity delays, while the company still expects significant growth the following year.
Nebius expects revenue of $12 billion to $13 billion in 2027 and capital expenditures of $40 billion to $45 billion, with pretax breakeven by the end of that year. It said prepayments and financing for existing contracts with investment-grade customers could cover 75% to 85% of its 2027 capital spending. The company also said prepayments for deals signed in the third quarter covered more than 100% of the associated capital expenditures, compared with 50% to 60% in the second quarter. It added that customers had committed to more than $12 billion in contract value since the start of the third quarter. These figures put contract prepayments at the heart of the expansion plan, alongside the substantial spending required to increase capacity.
Applied Digital's disclosures through Aug. 31, 2026, describe leases across five campuses, including about 1.41 gigawatts of IT load. The company estimates base contracted revenue at about $36 billion, rising to about $86 billion if all renewal options are exercised. High-performance computing hosting revenue was $262.6 million in the quarter ended Aug. 31, including $65.8 million in base rent. In an earlier disclosure dating to June, the company said its contracted portfolio represented 1.4 gigawatts of IT load and about 2.15 gigawatts of grid-connected power capacity. Long-term contracts provide a base of contracted revenue, while capacity, equipment and financing remain key to carrying out the planned expansion.
Across the broader market, the Associated Press reported that Nvidia lost just under $600 billion in market value during the week of Nov. 9 to 13, following Huang's resignation, and that Chief Financial Officer Colette Kress took over as interim CEO. The news agency linked investor concerns to whether AI profits would justify costly investments and high stock valuations. In that context, Friday's moves showed pressure on both data-center operators and chip suppliers. Reuters' report on the session was published at 11:50 a.m. local market time and updated at 12:18 p.m. The moves came after Nebius disclosed that revenue from some capacity would be delayed, alongside major capital expansion plans for the following year.