Applied Digital (APLD) Stock Declines 8% After Nvidia Exits $177M Stake

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TLDR

  • Nvidia’s 13F filing indicated it offloaded its entire approximately $177 million stake in Applied Digital (APLD), consisting of about 7.72 million shares held through the fourth quarter of 2025.
  • Following the revelation, APLD shares dropped 8.4% in after-hours trading.
  • Nvidia also divested stakes in Arm Holdings and WeRide.
  • Nvidia reported a new position in Intel—around 214.8 million shares valued at approximately $7.9 billion—along with stakes in Nokia and Synopsys.
  • Northland Capital’s Mike Grondahl maintained an “Outperform” rating on APLD, highlighting a 4.3 gigawatt active development pipeline.

Applied Digital shares saw a steep decline in after-hours trading on Tuesday after a regulatory filing showed that Nvidia had sold its entire stake in the company.

APLD Stock Card

Nvidia’s most recent 13F filing, which details holdings as of December 31, 2025, showed it had completely divested its 7.72 million shares of Applied Digital. The stake was valued at roughly $177 million at the end of the quarter.

The news caught markets off guard. Nvidia had been viewed as a strategic supporter of APLD, having taken part in a $160 million funding round for the company as recently as September 2024.

APLD shares declined by up to 8.4% in extended trading following the release of the filing on Tuesday.

The divestment sparks questions about investor confidence in Applied Digital, though the move seems to be part of a larger portfolio adjustment at Nvidia rather than a direct criticism of APLD’s fundamentals.

Nvidia Pivots Toward Core Infrastructure

While Nvidia was selling its APLD stake, it was establishing positions elsewhere. The filing indicated that Nvidia now holds approximately 214.8 million Intel shares, valued at about $7.9 billion as of December 31.

Nvidia also initiated positions in Nokia and chip-design software firm Synopsys. Both companies are closely linked to the hardware segment of AI infrastructure—networking and semiconductor development tools.

In the same filing, Nvidia also revealed it had sold stakes in Arm Holdings and WeRide, suggesting a more extensive rebalancing across its investment portfolio.

APLD: Still Building, Still Challenged

Despite the prominent exit, not all investors are leaving Applied Digital.

Northland Capital analyst Mike Grondahl reconfirmed his “Outperform” rating on APLD after the news. He cited the company’s development pipeline as a source of confidence—4.3 gigawatts of capacity currently in active development, with total planned capacity surpassing 9 GW.

Applied Digital reported quarterly revenue of $126.6 million in its latest results.

However, the company does confront significant challenges. CEO Wes Cummins identified supply chain constraints as a critical problem. Gas turbines—vital for powering large-scale data centers—now have lead times extending into 2031 and 2032.

Funding for Applied Digital’s infrastructure projects seems secure, backed by a credit facility from Macquarie.

The company’s next earnings report is anticipated around May 8, 2026.

Regarding Nvidia, Wall Street remains optimistic. The stock has a Strong Buy consensus rating, based on 37 Buy, one Hold, and one Sell recommendations. The average NVDA price target is $260.38, suggesting approximately 40.8% upside from current levels.