Nvidia Exits Applied Digital, APLD Stock Drops Nearly 8%

Shares of Applied Digital Corp. (APLD) experienced a significant decline of nearly 8% in after-hours trading on Tuesday, following the news that Nvidia Corporation (NVDA) had sold its entire position in the company. As of December 31, 2025, Nvidia’s stake, valued at approximately $177 million, was officially reported in a 13F filing on its website. This marked a notable withdrawal from a partnership that began in September 2024 when Nvidia invested $160 million in Applied Digital as part of a funding round aimed at enhancing the company’s artificial intelligence infrastructure.

Nvidia’s previous holdings included 7,716,050 shares of Applied Digital at the end of September 2025. The investment was intended to support the development of high-performance computing (HPC) data centers across the United States. Applied Digital, headquartered in Dallas, was also a participant in Nvidia’s Network Cloud Partner program, relying heavily on Nvidia’s GPUs to power its data center operations.

In contrast to its exit from Applied Digital, Nvidia has reinforced its commitment to CoreWeave Inc. (CRWV), announcing an additional $2 billion investment in January 2026. This strategic partnership aims to further expand AI data center infrastructure, indicating Nvidia’s continuing focus on robust investments within the AI sector.

Nvidia’s Broader Investment Strategy

The latest 13F filing reveals that Nvidia has diversified its portfolio by acquiring positions in several companies, including Intel Corporation (INTC), Finnish telecommunications firm Nokia Corporation (NOK), and electronic design automation company Synopsys, Inc. (SNPS). Meanwhile, Nvidia has divested from other holdings, including Arm Holdings PLC (ARM), Recursion Pharmaceuticals Inc. (RXRX), and WeRide Inc. (WRD).

Retail sentiment surrounding APLD shares has turned decidedly negative in recent days. Analysis on Stocktwits indicated that discussions regarding APLD remained in the ‘extremely bearish’ range, with low message volumes reflecting investor uncertainty. One user expressed that the sell-off further eroded confidence in the technology sector for the remainder of 2026. Conversely, some investors maintained a more optimistic outlook, arguing that Nvidia’s decision to sell did not alter the fundamental aspects of Applied Digital’s business, urging others to consider this as a buying opportunity.

Despite the recent downturn, APLD shares have witnessed a remarkable increase of over 248% over the past year, highlighting the stock’s previous volatility and the potential for recovery.

As the market digests this news, the implications of Nvidia’s exit from Applied Digital will likely resonate throughout the tech investment landscape, influencing both investor sentiment and future strategic decisions within the sector.