Applied Digital Corporation (APLD) saw a significant surge in its stock price on November 19, 2024, closing at $9.16, up 18.19% from the previous close of $7.75. The stock opened at $7.90 and reached a high of $9.26, with an impressive trading volume of 30,148,612 shares, nearly double its average. The primary catalyst for this upward movement was the confirmation of Nvidia's investment in Applied Digital, part of a $160 million financing round initially disclosed in September. This news reignited investor enthusiasm, driving the stock higher. Additionally, the company has been involved in a $375 million offering of Convertible Senior Notes and a share repurchase program, which have further bolstered investor confidence.
The market's reaction was also influenced by unusual options activity, with a notable call option sweep indicating bullish sentiment. Despite the positive momentum, some analysts remain cautious, highlighting Applied Digital's high costs and customer concentration as potential risks. Nevertheless, the stock's performance today reflects strong investor interest, buoyed by Nvidia's involvement and strategic financial maneuvers.