Movement Alert|Applied Digital Falls 5.17% in Regular Trading, Continued Pullback After Power Agreement Boost Digested

Market Focus03:26

On June 26, Applied Digital fell 5.17% in regular trading, trading at $39.94/share, with turnover of $416 million. The decline reflects a continued pullback following the digestion of a recently announced power supply agreement, compounded by broader sector pressure.

On the news front, MDU Resources' subsidiary Montana-Dakota Utilities signed a power supply agreement with Applied Digital to provide 430 megawatts of electricity to the company's Polaris Forge 3 AI factory in North Dakota, expected to begin operations in August next year. However, the agreement did not disclose financial details, limiting investor enthusiasm. Since the announcement on June 23, the stock has retreated from approximately $45.27 to current levels, representing a cumulative decline of over 11%.

Applied Digital is a designer, builder, and operator of next-generation digital infrastructure, focused on providing data center solutions for high-performance computing and AI industries. The company's four AI factory campuses carry total contracted lease revenue of $31 billion.

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