Nvidia Sells Stake in Applied Digital Following Significant Revenue Growth
Nvidia (NASDAQ: NVDA), a leading producer of data center GPUs, sold its entire stake of 7.7 million shares in Applied Digital (NASDAQ: APLD) for approximately $177 million in Q4 2025. Nvidia previously invested in Applied Digital in September 2024. This divestiture raises questions about the viability of Applied Digital’s growth strategy.
Applied Digital, which transitioned from Bitcoin mining to AI and cloud services in 2022, saw revenue jump from $8.5 million in fiscal 2022 to $215.5 million in fiscal 2025. However, a single customer, likely CoreWeave, contributed to 93% of fiscal 2025 revenue, presenting significant risks. Analysts project revenue could soar to $1.05 billion by fiscal 2028, but profitability is not expected until at least then, and the firm plans to merge its cloud business with EKSO Bionics Holdings.
Despite Nvidia’s exit and the associated concerns, Applied Digital has secured about $16 billion in lease contracts over 15 years, signaling potential for future growth as it aims to expand capacity significantly.
