Applied Digital Corp. (NASDAQ:APLD) stock fell Tuesday as hotter-than-expected inflation data weighed on technology stocks and AI infrastructure companies.
The Nasdaq Composite dropped 1.65%, while the S&P 500 declined 0.92%. The technology sector led losses, falling 2.45%.
Meanwhile, Morgan Stanley maintained an Equal-Weight rating on Applied Digital and lowered its price forecast to $25.
Hotter Inflation Pressures Technology Stocks
U.S. consumer prices rose 0.4% in October, exceeding economists’ forecast of 0.3%, according to data released Tuesday.
Core inflation, which excludes food and energy, increased 0.3%, above the expected 0.2%.
Following the report, Federal Reserve Governor Christopher Waller said policymakers should consider a 50-basis-point interest rate increase in December.
The inflation data added pressure to high-growth technology stocks, including companies tied to artificial intelligence infrastructure.
Applied Digital develops and operates data centers that support AI, machine learning and high-performance computing.
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Applied Digital Stock Faces Bearish Technical Signals
Applied Digital shares remain below key moving averages, signaling continued weakness.
The stock trades 10.9% below its 20-day simple moving average (SMA) of $18.20 and 47.1% below its 200-day SMA of $30.64.
Its 50-day SMA also remains below the 200-day average, reinforcing the longer-term bearish trend.
Meanwhile, the moving average convergence divergence (MACD) indicator remains below its signal line, suggesting weak buying momentum.
Traders are watching $18.20 as a key resistance level. The stock’s 52-week low of $13.12 serves as potential support.
Technology stocks have also struggled in recent months. The sector has fallen 15.05% over the past 30 days and 11.68% over the past 90 days.
APLD Stock Price Action
APLD Stock Price Activity: Applied Digital shares were down 2.42% at $16.32 at the time of publication on Tuesday, according to Benzinga Pro data.
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