Nvidia Exits Applied Digital Position; Analysts Maintain Bullish Outlook

Applied Digital Corporation (APLD) shares fell 4.9% on February 18, 2026, after SEC filings revealed NVIDIA (NVDA) divested its entire stake. The chipmaker sold 7.7 million shares previously valued at approximately $177 million. Roth Capital reaffirmed its "Buy" rating with a $58 price target, dismissing the decline as headline risk rather than operational weakness. The firm cited Applied Digital's recent fiscal Q2 revenue of $126.6 million—a 250% year-over-year increase—and new co-location leases with CoreWeave as positive indicators. Despite a 19% drop over the past month, Wall Street maintains a "Strong Buy" consensus with an average price target of $49.15, implying 69% upside potential.