Applied Digital Corp (NASDAQ:APLD) stock fell Thursday as it continued downward momentum from the prior trading session. The decline comes as market participants express concern over artificial intelligence sector debt levels.
The sell-off followed price pressure in the debt market, particularly around CoreWeave Inc. (NASDAQ:CRWV). Yields on CoreWeave’s $1.25 billion bond issue due in 2032 climbed to a peak of 15%.
Venture capitalist Chamath Palihapitiya highlighted the move on social media by posting a chart tracking the bond’s trajectory. Tesla Inc and Space Exploration Technologies Corp CEO Elon Musk responded to the post early Wednesday, commenting, “Yikes.”
AI Spending and Private Credit Risks
Palihapitiya cautioned that elevated capital expenditure across the technology sector could be forming a “private credit bubble.” He projected that six major tech firms—including Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) and Oracle Corp (NYSE:ORCL)—will scale capital expenditures from $470 billion in 2025 to more than $1.3 trillion by 2027, with the expansion financed through debt, leases and structural funding.
Technical Analysis
CRWV is still in a clear longer-term downtrend, with the stock trading 24.8% below its 20-day SMA ($84.47) and 31.3% below its 200-day SMA ($92.53). That kind of separation from every major moving average usually signals sellers remain in control, even if bounces show up along the way.
The trend picture is also weighed down by bearish crossover structure: the 20-day SMA is below the 50-day SMA, and the death cross that formed in July (50-day SMA below the 200-day SMA) keeps the longer-term bias pointed lower. From a price-action standpoint, the stock is hovering just above the 52-week low area ($60.55), which is why traders are treating this zone as a “make-or-break” area.
Momentum is stretched: RSI is 28.84, which puts the stock in oversold territory and often signals downside may be getting crowded in the near term.
- Key Support: $60.50 — a nearby level where buyers previously stepped in, sitting right on top of the 52-week low zone
APLD/CRWV Stock Price Activity: Applied Digital shares are trading lower by 7.95% at $18.71, and CoreWeave shares are trading lower by 7.93% at $60.56 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: PJ McDonnell / Shutterstock
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