Applied Digital (APLD) Stock: Why Did Nvidia Just Sell Its Entire $177M Stake?

TLDR

• Nvidia’s Q4 2025 13F filing confirmed it sold all 7.72 million shares of Applied Digital, a stake worth ~$177M.
• APLD dropped 8.4% in after-hours trading after the filing was released Tuesday.
• Nvidia also exited positions in Arm Holdings and WeRide.
• New positions were opened in Intel (~214.8M shares, ~$7.9B), Nokia, and Synopsys.
• Northland Capital maintained an Outperform rating on APLD, citing a 4.3 GW active development pipeline.

Applied Digital shares took a hit in after-hours trading Tuesday after Nvidia’s latest 13F SEC filing revealed the chipmaker had fully exited its position in the company. The stock dropped as much as 8.4% following the disclosure.

Applied Digital Corporation, APLD

Nvidia held 7.72 million APLD shares through Q4 2025, a stake valued at roughly $177 million as of December 31. The filing confirmed all of those shares were sold.

The exit stung for a simple reason — Nvidia wasn’t just a passive investor. The company had participated in a $160 million funding round for Applied Digital as recently as September 2024, making it a visible strategic backer.

The same filing showed Nvidia also sold its stakes in Arm Holdings and WeRide, pointing to a broader portfolio rebalancing rather than a targeted move against Applied Digital specifically.

Nvidia Shifts Focus to Core AI Infrastructure

While Nvidia was clearing out APLD, it was building elsewhere. The 13F revealed Nvidia now holds approximately 214.8 million shares of Intel, worth around $7.9 billion at quarter-end.

New positions in Nokia and Synopsys were also disclosed. Both sit close to the hardware backbone of AI — networking equipment and semiconductor design tools. The pattern suggests Nvidia is doubling down on the foundational layer of AI infrastructure.

What It Means for Applied Digital

Despite losing a marquee investor, Applied Digital still has backers in its corner. Northland Capital analyst Mike Grondahl reaffirmed an Outperform rating on APLD after the news, pointing to the company’s pipeline. There are currently 4.3 gigawatts of capacity in active development, with total planned capacity topping 9 GW.

Applied Digital posted quarterly revenue of $126.6 million in its most recent report. Funding for its large-scale projects remains in place, backed by a Macquarie credit facility.

The company does face real operational challenges. CEO Wes Cummins has flagged supply chain pressure, specifically around gas turbines used to power data centers. Lead times for that equipment now stretch into 2031 and 2032.

The next earnings report is expected around May 8, 2026.

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