Applied Digital Shares Drop 2.18% After Nvidia Sells $177M Stake
Applied Digital shares fell 2.18% after SEC filings revealed Nvidia sold its entire $177 million stake of 7.716 million shares in the data center operator. The stock trades 7.2% below its 20-day SMA of $35.79 with an RSI of 48.2, reflecting neutral momentum despite Nvidia’s exit.
1. Nvidia Divests $177M Stake
In a late filing, Nvidia sold all 7,716,050 shares in Applied Digital, liquidating its $177 million position first established in 2024 that helped drive a 240% gain over the past year.
2. Share Price Reaction and Technical Signals
Applied Digital shares slid 2.18%, closing at $32.83, trading 7.2% below the 20-day SMA of $35.79 and 3.7% above the 50-day SMA of $32.04, with an RSI of 48.2 and the MACD below its signal line, indicating neutral to bearish momentum.
3. Analyst Ratings and Outlook
The stock carries a consensus Buy rating with an average target of $30.80; B. Riley and Roth Capital have raised targets to $53.00 and $58.00 respectively, while Needham maintains a $41.00 target, suggesting divergent views on recovery prospects.