Applied Digital's 471st Volume Rank Reflects Volatile AI-Driven Gains and Financial Risks

On September 4, 2025, Applied Digital (NASDAQ: APLD) closed at $14.32, down 0.35%, with a trading volume of 15.56 million shares. The stock ranked 471st in trading activity across the market. The decline followed a recent 87.57% year-to-date gain and a 342.28% surge over the past 12 months, reflecting volatile growth amid shifting market dynamics.

APLD’s performance was influenced by its ongoing partnership with CoreWeave, an AI hyperscaler. The company finalized a new 150MW lease agreement at its Polaris Forge 1 Campus in North Dakota, bringing total contracted IT capacity to 400MW. This expansion, part of a $7 billion revenue agreement over 15 years, underscores APLD’s focus on high-performance computing (HPC) infrastructure for AI. The deal elevates APLD’s projected lease revenue to $11 billion, reinforcing its strategic alignment with AI-driven demand.

However, APLD faces challenges in balancing capital expenditures with profitability. The company reported a net loss of $160.95 million for the trailing 12 months, driven by leveraged free cash flow of -$542.86 million. While the AI sector’s growth potential remains strong—markets are projected to reach $15.5 billion in chatbot revenue by 2028—APLD’s high debt-to-equity ratio (110.91%) and negative operating margins highlight risks for investors. The stock’s recent pullback from a 52-week high of $17.60 suggests caution amid broader market volatility.

Historical backtesting of APLD’s performance indicates a mixed outlook. A $1,000 investment in CoreWeave in December 2004 would have grown to $654,759 by August 2025, while a similar investment in APLD since its pivot to AI infrastructure in 2022 has shown rapid but uneven gains. The company’s ability to scale infrastructure and manage debt will be critical in sustaining long-term growth.