Applied Digital (APLD) Drops 17% on AI Bubble Worries

We recently published 10 Stocks Facing Selling Pressure Ahead of Christmas. Applied Digital Corp. (NASDAQ:APLD) is one of the biggest losers on Monday.

Applied Digital nosedived for a fourth consecutive day on Monday, slashing 17.52 percent to close at $22.98 apiece as investors took path from a broader market pessimism amid fresh AI bubble worries.

The stock declined alongside its high-performance computing (HPC) counterparts, dragged down by increasing concerns about technology giants’ heavy spending on AI, particularly on how quickly they would be able to recoup their investments.

Applied Digital (APLD) Drops 17% on AI Bubble Worries

Last week alone, technology giant Oracle Corp. announced that its debt had ballooned to $108 billion, as it continues to ramp up its spending on AI.

Similarly, Applied Digital Corp. (NASDAQ:APLD) is spending heavily on AI, supported by a flurry of data center leasing deals with hyperscalers.

This year alone, Applied Digital Corp. (NASDAQ:APLD) entered into multiple credit facilities to raise billions of dollars to fund the development of its HPC campus pipelines.

While we acknowledge the risk and potential of APLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APLD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.