TLDR
- Nvidia’s 13F filing revealed it sold its entire ~$177M stake in Applied Digital (APLD), roughly 7.72 million shares held through Q4 2025.
- APLD shares fell 8.4% in after-hours trading following the disclosure.
- Nvidia also sold stakes in Arm Holdings and WeRide.
- Nvidia disclosed a new position in Intel — about 214.8 million shares worth ~$7.9 billion — plus Nokia and Synopsys.
- Northland Capital’s Mike Grondahl kept an “Outperform” rating on APLD, citing a 4.3 GW active development pipeline.
Applied Digital shares dropped sharply in after-hours trading Tuesday after a regulatory filing revealed Nvidia had sold its entire position in the company.
Applied Digital Corporation, APLD
Nvidia’s latest 13F filing, covering holdings as of December 31, 2025, showed it had fully divested its 7.72 million shares of Applied Digital. The stake was worth approximately $177 million at quarter-end.
The news caught markets off guard. Nvidia had been seen as a strategic backer of APLD, having participated in a $160 million funding round for the company as recently as September 2024.
APLD shares fell as much as 8.4% in extended trading after the filing dropped Tuesday.
The exit raises questions about investor confidence in Applied Digital, even if the move appears to be part of a broader portfolio reshuffle at Nvidia rather than a specific knock on APLD’s fundamentals.
Nvidia Pivots Toward Core Infrastructure
While Nvidia was selling APLD, it was building positions elsewhere. The filing showed Nvidia now holds roughly 214.8 million Intel shares, valued at around $7.9 billion as of December 31.
Nvidia also added positions in Nokia and chip-design software firm Synopsys. Both companies are tightly connected to the hardware layer of AI infrastructure — networking and semiconductor development tools.
In the same filing, Nvidia also disclosed it had sold stakes in Arm Holdings and WeRide, pointing to a broader rebalancing across its investment portfolio.
APLD: Still Building, Still Challenged
Despite the high-profile exit, not everyone is heading for the door on Applied Digital.
Northland Capital analyst Mike Grondahl reaffirmed his “Outperform” rating on APLD following the news. He pointed to the company’s development pipeline as a reason for confidence — 4.3 gigawatts of capacity currently in active development, with total planned capacity exceeding 9 GW.
Applied Digital reported quarterly revenue of $126.6 million in its most recent results.
The company does face real headwinds, though. CEO Wes Cummins flagged supply chain constraints as a pressing issue. Gas turbines — essential for powering large-scale data centers — now have lead times stretching into 2031 and 2032.
Funding for Applied Digital’s infrastructure projects appears intact, supported by a credit facility from Macquarie.
The company’s next earnings report is expected around May 8, 2026.
As for Nvidia, Wall Street remains bullish. The stock carries a Strong Buy consensus rating based on 37 Buy, one Hold, and one Sell recommendations. The average NVDA price target sits at $260.38, implying roughly 40.8% upside from current levels.
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