Applied Digital Corp. (APLD) had a rough Tuesday, and it wasn't really about Applied Digital. The company got caught in a broader selloff as hotter-than-expected inflation data slammed technology stocks and AI infrastructure companies.

The Nasdaq Composite dropped 1.65%, while the S&P 500 declined 0.92%. The technology sector led the losses, falling 2.45%.

Meanwhile, Morgan Stanley maintained an Equal-Weight rating on Applied Digital and lowered its price forecast to $25.

Hotter Inflation Pressures Technology Stocks

U.S. consumer prices rose 0.4% in October, exceeding economists' forecast of 0.3%, according to data released Tuesday.

Core inflation, which excludes food and energy, increased 0.3%, above the expected 0.2%.

Following the report, Federal Reserve Governor Christopher Waller said policymakers should consider a 50-basis-point interest rate increase in December.

The inflation data added pressure to high-growth technology stocks, including companies tied to artificial intelligence infrastructure.

Applied Digital develops and operates data centers that support AI, machine learning and high-performance computing.

Applied Digital Stock Faces Bearish Technical Signals

Applied Digital shares remain below key moving averages, signaling continued weakness.

The stock trades 10.9% below its 20-day simple moving average (SMA) of $18.20 and 47.1% below its 200-day SMA of $30.64.

Its 50-day SMA also remains below the 200-day average, reinforcing the longer-term bearish trend.

Meanwhile, the moving average convergence divergence (MACD) indicator remains below its signal line, suggesting weak buying momentum.

Traders are watching $18.20 as a key resistance level. The stock's 52-week low of $13.12 serves as potential support.

Technology stocks have also struggled in recent months. The sector has fallen 15.05% over the past 30 days and 11.68% over the past 90 days.

APLD Stock Price Action

APLD Stock Price Activity: Applied Digital shares were down 2.42% at $16.32 at the time of publication on Tuesday, according to market data.