Applied Digital Corp. (APLD) shares climbed Monday as investor appetite for AI infrastructure stocks improved after major technology companies reinforced plans for heavy artificial intelligence spending and highlighted persistent demand for computing capacity.
The broader market also supported the move. The Nasdaq gained 1.69%, the S&P 500 rose 1.37%, and the Technology sector advanced 1.57%.
Adding to the bullish sentiment, B. Riley Securities on Monday maintained its Buy rating on Applied Digital and raised its price forecast to $75.
Recent earnings from Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL) reinforced confidence in AI infrastructure demand.
Technical Picture
The stock is attempting to recover after retreating from its May high. However, the longer-term trend remains mixed.
Applied Digital trades 20.1% below its 50-day simple moving average of $37.21 and 8.9% below its 200-day simple moving average of $32.62. It remains 4.2% above its 20-day simple moving average of $28.53, indicating short-term buying interest.
The relative strength index stands at 47.65, reflecting neutral momentum. The reading suggests the stock is neither overbought nor oversold.
The 20-day moving average remains below the 50-day moving average, a near-term bearish signal. However, the 50-day average is still above the 200-day average, indicating the longer-term uptrend has weakened but has not fully reversed.
Key resistance sits near $31.50. Support is around $24.00.
Analyst Outlook
Analysts maintain a consensus Buy rating with an average price forecast of $72.21. On Monday, B. Riley Securities reiterated its Buy rating and raised its price forecast to $75. Needham maintained a Buy rating with an $83 price forecast on July 28, while Morgan Stanley initiated coverage with an Equal-Weight rating and a $36.50 price forecast on July 23.
ETF Exposure
Applied Digital is a notable holding in several thematic funds, including the Fidelity Crypto Industry and Digital Payments ETF (FDIG), the CoinShares Bitcoin Miners ETF (WGMI) and the Spear Alpha ETF (SPRX). Changes in fund flows could influence demand for the stock.
APLD Stock Price Activity: Applied Digital shares were up 8.09% at $29.61 at the time of publication on Monday, according to market data.
