Applied Digital Shares Fall Amid Tariff Uncertainty and Rising Treasury Yields

Applied Digital shares fell 4.9% after a federal court ruling on President Trump's global tariffs, rising Treasury yields, and a historically weak September track record for stocks. The stock market is volatile and overreacts to news, making big price drops good opportunities to buy high-quality stocks. Despite a 94.9% year-to-date gain, Applied Digital is trading close to its 52-week high and investors should consider buying shares.

Applied Digital (NASDAQ: APLD) shares fell 4.9% in the afternoon session on September 2, 2025, following a federal court ruling that deemed most of President Trump's global tariffs illegal. This ruling raised uncertainty over trade policy and potential refunds, contributing to a broader market retreat. The Nasdaq index declined by 1.5%, while the S&P 500 dropped by 1.2%, amid profit-taking and renewed concerns about tariffs. Rising Treasury yields, with the 10-year yield climbing above 4.2% and the 30-year nearing 5%, added pressure to the market, intensifying worries about stretched equity valuations. Historically weak performance in September further dampened sentiment, leaving traders cautious ahead of the upcoming jobs report and the Federal Reserve's rate decision.

The stock market's volatility and overreaction to news present opportunities for investors to buy high-quality stocks at discounted prices. Applied Digital's shares, despite a 94.9% year-to-date gain, are trading close to their 52-week high of $16.70, making it an attractive option for long-term investors. The company's strategic expansion in AI infrastructure, secured through long-term leases and partnerships, positions it well to capitalize on the growing demand for compute power in the AI-driven economy.

Applied Digital's recent strategic partnerships and expansions, such as the 400 MW lease with CoreWeave and a $5 billion investment from Macquarie Asset Management, have generated significant contracted revenue and ensured operational efficiency. The company's focus on geographic and technological advantages, such as North Dakota's low-cost energy and favorable climate, further enhances its competitive edge.

While the market's volatility may present short-term challenges, Applied Digital's long-term prospects remain strong. The company's alignment with macroeconomic trends and its ability to generate recurring revenue through multi-decade contracts provide a compelling case for long-term value creation. For investors, the combination of contracted revenue, scalable infrastructure, and alignment with a rapidly growing AI market presents a solid foundation for future growth.

References:
[1] https://finance.yahoo.com/news/why-applied-digital-apld-shares-194037812.html
[2] https://www.ainvest.com/news/applied-digital-strategic-expansion-ai-infrastructure-unlocking-long-term-revenue-scalability-ai-driven-economy-2508/