Applied Digital (APLD) Falls 9% on Investment Firms’ Growing AI Concerns

Group 1 - Applied Digital Corp. (NASDAQ:APLD) experienced a significant decline in share price, dropping 9.24% to close at $22, amid growing investor concerns regarding the AI industry [1][3] - Blue Owl Capital withdrew from a $10 billion plan to support Oracle's data center, although Oracle confirmed that construction remains on track [2] - The negative sentiment surrounding AI funding is affecting AI-linked companies, including Applied Digital, as financial institutions appear to be more cautious about capital-intensive AI projects [3] Group 2 - Applied Digital is currently in negotiations for two or three additional data center campuses, indicating ongoing demand and potential expansion [4] - The nature of the negotiations remains unclear, whether for leasing partnerships or fundraising, but it signals the company's commitment to growth [4] - Despite the challenges, there is a belief that some AI stocks may offer better returns with limited downside risk compared to APLD [5]