Applied Digital shares drop 8% as CEO highlights $800M financing gap for AI data centers.

Applied Digital's stock fell 8% after CEO Wes Cummins revealed the company still needs to finance about 800 MW of its planned AI data center capacity. Despite having $20 billion in contracted revenue and tenants with strong credit ratings, rising borrowing costs and a high interest expense exceeding rental income raise concerns. The company aims to expand capacity to 3.5-4 GW by 2030 but must secure favorable project debt to sustain growth. Market peers Nebius and CoreWeave also declined amid worries about AI infrastructure financing.

Applied Digital's shares dropped 7.80% to USD 16.43 on Pluang as of Nov 03, 2026 03:01 WIB, reflecting heavy sell pressure with 74% of orders to sell. Nebius also fell nearly 7%, trading at USD 143.43, well below its 52-week high of USD 286.69 but above its low of USD 73.87. CoreWeave declined 8.10%, hitting USD 50.52, with the shortest typical hold time of 13 days and the highest sell order ratio at 96%, indicating strong investor caution in AI infrastructure stocks today.