Applied Digital Falls as AI Hosting Sector Experiences Continued Sell-Off
Applied Digital (NASDAQ:APLD) dropped 4% on Tuesday, pushing its year-to-date return into negative territory at -3%. This follows a 24% monthly decline and marks a reversal for the stock, which was previously among the top AI capacity plays in early 2026. Core Scientific (NASDAQ:CORZ) fell by 5%, while Cipher Mining (NASDAQ:CIFR) dropped 4%. Despite these declines, both remain positive year to date. The broader market and sector ETFs were less affected; the Global X Data Center & Digital Infrastructure ETF (DTCR) declined just 0.6% as selling remained concentrated in leveraged AI buildout names rather than spreading across the entire infrastructure basket. The SPDR S&P 500 ETF Trust also fell slightly by 0.5%. The sell-off is attributed to a broader trend of declining investor confidence, despite strong Q4 results from Applied Digital and expectations for increased hyperscaler capital expenditures.
Topics: AI infrastructure sector leveraged buildout names stock decline