Why Applied Digital Stock Skyrocketed 38% Last Month But Is Sinking in June
Written by Keith Noonan for The Motley Fool -> The AI trade was hot last month, and Applied Digital saw strong bullish momentum. The company's share price surged in conjunction with data center news and analyst price target increases. The stock has lost some ground in June due
The AI trade was hot last month, and Applied Digital saw strong bullish momentum.
The company's share price surged in conjunction with data center news and analyst price target increases.
The stock has lost some ground in June due to macroeconomic concerns.
Applied Digital (NASDAQ: APLD) roared higher in May's trading, bounding 38% higher across the stretch. Meanwhile, the S&P 500 rose 5.2% in the month, and the Nasdaq Composite jumped 8.4%.
Investors were strongly bullish on the artificial intelligence (AI) trade last month, and many big names in the category saw massive valuation gains. Despite a pullback in June's trading, Applied Digital stock is up roughly 66% in 2026.
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Along with bullish momentum for AI stocks, Applied Digital's valuation also moved higher in conjunction with some business-specific news last month. For starters, the company published a press release on May 4 announcing that it had secured new funding through a $300 million senior secured bridge facility. Applied Digital said that it would use the money to fund the construction of its third AI data center.
The next day, the company announced that it had completed the separation of its cloud business. As a result of the deal, the cloud unit was taken over by EKSO -- which then changed its name to ChronoScale Corporation . The renamed business began trading on the Nasdaq exchange the same day.
