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Key Updates on Applied Digital
Shares of Applied Digital (NASDAQ: APLD) increased by 7.8% on Wednesday, outperforming the S&P 500 and Nasdaq Composite, which rose by 0.1% and 0.4%, respectively. The surge follows news that a group of investors, including BlackRock and Nvidia, is acquiring Aligned Data Centers for $40 billion, marking a significant trend in the AI data center sector.
CEO Larry Fink of BlackRock stated that this investment will enhance infrastructure necessary to advance AI, with plans for further investments amounting to billions. Despite this optimistic industry outlook, Applied Digital is currently burdened by significant debt and may face challenges in financing future projects without incurring high interest or diluting shares.
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