Applied Digital: A Flicker of Hope

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Applied Digital (APLD +14.29%) went up today. A good fourteen-point-three percent. Not bad, for a company that exists mostly as a promise. The S&P 500 did okay, too, and the Nasdaq even managed a little skip. So it goes.

It seems Nvidia, that maker of shiny little chips that dream up artificial intelligence, decided to throw some money at CoreWeave, a cloud operation that Applied Digital happens to know. A lot of money. Two billion dollars, actually. That’s enough to buy a small country, or at least a very large data center.

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Nvidia’s Generosity

Nvidia bought shares in CoreWeave. Class A shares, at eighty-seven dollars and twenty cents apiece. They call it an “expanded partnership.” What it really is, is a bet. A bet on the future, and on the continued demand for things that aren’t quite real. It’s a beautiful, terrifying cycle.

What it Means for Those Who Wait

Applied Digital is friends with CoreWeave. Or, more accurately, they provide space for CoreWeave’s computers. This Nvidia news is, therefore, a little bit of good luck for them. It eases the worry that CoreWeave might not be able to pay its bills. A small comfort, in a world full of IOUs.

Now, I’m a dividend hunter, see. I like companies that actually give you money, not just promise it someday. Applied Digital doesn’t pay a dividend. It’s leveraged, meaning it’s borrowed a lot of money. This Nvidia news doesn’t change that. It’s like giving a thirsty man a glass of water when the well is dry. It feels good for a moment, but the thirst always returns.

I still think this whole thing is speculative. A house of cards built on the backs of algorithms. But then, what isn’t these days? So it goes. Treat both of these stocks with caution. And maybe, just maybe, consider something a little more…substantial. Like a nice, boring utility company. They don’t dream of artificial intelligence. They just deliver the electricity. And sometimes, that’s enough.

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2026-01-28 02:33