Why Applied Digital Stock Soared 16.5% on Friday
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By Johnny Rice – Dec 19, 2025 at 6:30PM ESTKey PointsMicron's blockbuster earnings report helped set off a rally in the AI market.Applied Digital announced on Thursday that it has secured new funding from a key financing partner.The company is at risk of overextending itself in its rush to build new data centers. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: APLDApplied DigitalMarket Cap$6.7BToday's Changeangle-down(16.53%) $3.95Current Price$27.85Price as of December 19, 2025 at 4:00 PM ETThe data center developer announced new funding right as an AI rally kicked off.Shares of Applied Digital (APLD +16.53%) jumped on Friday, finishing the day up 16.5%. The gain came as the S&P 500 and the Nasdaq Composite finished up 0.8% and 1.3%, respectively. The artificial intelligence (AI) data center company announced yesterday that it has secured a new loan facility. The timing could not have been better as Micron's earnings beat on Wednesday renewed confidence in the AI trade. ExpandNASDAQ: APLDApplied DigitalToday's Change(16.53%) $3.95Current Price$27.85Key Data PointsMarket Cap$6.7BDay's Range$24.33 - $27.8952wk Range$3.31 - $40.20Volume38MAvg Vol31MGross Margin14.46% Applied Digital secures $100 million Applied Digital announced on Thursday that it has obtained new financing from Macquarie Group -- a key funding partner. The initial $100 million draw will support "pre-lease development costs for new data center projects." The loan will cover planning, permitting, and initial construction costs associated with campuses it is developing for an unnamed "investment-grade hyperscaler." The press release came just as investors began rotating back into AI. Renewed fears of a bubble have punished AI stocks since Oracle's disappointing earnings last week. But Micron's release after the bell on Wednesday breathed life back into AI stocks. The memory chipmaker's sales and earnings per share figures came in well above estimates. Company leadership told investors that the AI market can't get enough of its specialized memory. Image source: Getty Images. Applied Digital still carries a significant risk The risks here are still too high for my taste. Applied Digital will keep borrowing at steep rates, issuing more shares -- or, more likely, both. The reality is that those in the AI data center business walk an incredibly fine line. If the AI boom cools off, Applied Digital could easily find itself overleveraged and unable to make good on its obligations.Advertisement Read NextDec 18, 2025 •By Johnny RiceWhy Applied Digital Stock Jumped 8.6% TodayDec 18, 2025 •By Harsh Chauhan1 Artificial Intelligence Stock That Could Double in 2026Dec 14, 2025 •By Manali Pradhan, CFACould Applied Digital Be One of the Biggest Winners of the AI Infrastructure Boom?Dec 14, 2025 •By John Ballard1 Major Catalyst That Could Send Applied Digital Stock HigherDec 12, 2025 •By John BallardGot $1,000? 1 Tech Stock to Buy and Hold for Decades.Dec 10, 2025 •By Manali Pradhan, CFACould Buying Applied Digital Today Set You Up for Life?About the AuthorJohnny Rice is a contributing writer for The Motley Fool covering tech stocks. He previously contributed to various financial publications.TMFJohnnyRiceStocks MentionedApplied DigitalNASDAQ: APLD$27.85 (+0.17%) $+3.95OracleNYSE: ORCL$192.68 (+0.07%) $+12.65Micron TechnologyNASDAQ: MU$265.92 (+0.07%) $+17.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement