Why Did Applied Digital Stock Sink 5.8% Today?

Core Insights - Applied Digital's shares fell by 5.8% despite announcing a significant multibillion-dollar deal for data center capacity [1][7] - The company secured a contract worth up to $5 billion over 15 years for 200 megawatts of capacity, increasing its total leased capacity to 600 megawatts [2] - Concerns over potential new export restrictions on "critical software" by the Trump administration may have negatively impacted investor sentiment [3] Company Developments - Applied Digital announced a new 15-year deal with an unnamed "investment-grade hyperscaler" for data center capacity [7] - The deal is expected to enhance the company's position in the AI data center market, which is experiencing significant demand [2] Market Context - The overall market saw declines, with the S&P 500 and Nasdaq Composite falling by 0.5% and 1%, respectively, which may have contributed to the drop in Applied Digital's stock [1] - The potential export controls could affect not only Applied Digital but also its customers, raising concerns about future growth [3]