Why Applied Digital Stock Is Plummeting Today
Applied Digital (NASDAQ: APLD) stock is getting hit with another sell-off in Tuesday's trading. The data center company's share price was down 10.8% as of 3 p.m. ET after having been off by as much as 18% earlier in the session.
The stock was slumping as traders generally sold out of growth-dependent artificial intelligence (AI) stocks Tuesday. Market participants are focusing on emerging macroeconomic risk factors, and bullish sentiment toward AI plays is weakening ahead of Nvidia's fourth-quarter report, which is due out after the market close on Wednesday.
The Trump administration's plan to impose new tariffs on Canada and Mexico is adding to investors' existing concerns about resurgent inflation. Tech sector investors are also concerned about the impact of Trump's plans to introduce new restrictions that would further curtail the export of advanced semiconductors and manufacturing equipment to China.
Source Fool.com
