Applied Digital Corporation (NASDAQ:APLD) stock rallied on Tuesday as a sector-wide relief wave lifted data center infrastructure providers.
The move followed pushback from industry figures against warnings that artificial intelligence data center demand could stall.
Broader markets supported the advance, with technology pacing market gains at 1.35%. Meanwhile, the Nasdaq Composite gained 1.21% and the S&P 500 rose 0.62%.
Experts Challenge Bubble Fears
Yardeni Research President Ed Yardeni said Monday that the AI bubble could deflate without bursting, while Tesla Inc (NASDAQ:TSLA) and Space Exploration Technologies Corp (NASDAQ:SPCX) CEO Elon Musk warned that financing constraints could leave data centers unfinished.
“The bond market is going to regulate the availability of capital to the AI trade,” he said, adding that credit investors were becoming more selective about borrowers, sometimes moving faster than rating agencies.
His remarks follow growing concerns about CoreWeave’s debt, as lenders question whether AI infrastructure investments can generate sufficient returns.
TeraWulf Inc. (NASDAQ:WULF) CEO Paul Prager said developers secure customer commitments, power and financing before construction, adding, “We may move dirt early, but we don’t build on spec.”
Technical Analysis
Even after Tuesday’s pop, APLD is still trading 10.6% below its 20-day SMA ($21.69) and 21.2% below its 50-day SMA ($24.61), which keeps the intermediate trend pointed down. The bigger-picture damage is clearer versus the 200-day SMA ($31.60), with price still 38.6% below that long-term trend gauge.
The moving-average structure reinforces that bearish backdrop, with the 20-day SMA below the 50-day SMA and the death cross (50-day SMA below the 200-day SMA) still in place since August. From a levels standpoint, traders will watch whether the stock can hold recent lows and build a base before expecting any sustained trend reversal.
The key support level is at $17.50, where buyers have previously stepped in, near the stock’s 52-week low of $17.65.
Zooming out, the sector has slipped 2.93% over the past 30 days but is still up 13.36% over the past 90 days, which frames today’s strength as part of a broader recovery trend with some recent chop.
APLD Price Action: Applied Digital shares were up 9.48% at $19.52 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo: PJ McDonnell / Shutterstock
