Applied Digital Corp. (NASDAQ:APLD) stock is under pressure on Friday as concerns over AI infrastructure financing costs weigh on investor sentiment. The weakness reflects a broader sell-off in AI data-center stocks. The Nasdaq is down 0.68% while the S&P 500 has gained 0.07%.

Macro Headwinds Hit Sector

Shares of AI cloud services companies traded lower amid persistent concerns over debt levels required to sustain the AI cloud compute buildout. U.S. inflation and producer price data this week support expectations for more Federal Reserve rate hikes, placing further strain on high-yield credit markets.

CoreWeave Bond Yield Spikes

Applied Digital stock continued downward momentum from Thursday. The sell-off followed price pressure around CoreWeave Inc. (NASDAQ:CRWV), whose $1.25 billion bond issue due in 2032 saw yields climb to a peak of 15%.

Venture capitalist Chamath Palihapitiya highlighted the move on social media, prompting Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk to reply, “Yikes.”

Palihapitiya cautioned that capital expenditure across tech could form a “private credit bubble,” projecting six major tech firms—including Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Oracle Corp (NYSE:ORCL)—will scale capex from $470 billion in 2025 to over $1.3 trillion by 2027 through debt and structural funding.

Technical Analysis

Applied Digital remains in a bearish trend, trading below its major moving averages.

The stock is 22.5% below its 20-day simple moving average (SMA) and 27.8% below its 50-day SMA. It also trades about 41% below its 100-day and 200-day SMAs.

Additionally, a death cross formed in August when the 50-day SMA fell below the 200-day SMA, signaling longer-term weakness.

The relative strength index (RSI) stands at 27.47, indicating oversold conditions. While this could support a short-term rebound, it does not confirm a trend reversal.

Key resistance stands near $23.55, while the $19 level represents an important support area. However, the stock has already slipped below that level.

APLD Stock Price Activity: Applied Digital shares were down 7.21% at $18.92 at the time of publication on Friday, according to market data.