Applied Digital Corp APLD has become one of Wall Street’s hottest tickets as it quickly evolved from crypto-focused data centers into what it now refers to as “AI Factories.”
APLD is showing upward bias. See what the experts say here.
Investors welcomed the transition with open arms, sending the stock up over 265% in the past year and close to fresh 52-week highs. The company’s new extended lease deal with CoreWeave has now taken its contracted capacity to 400 megawatts and secured about $11 billion in future revenue, solidifying its position as a major player powering high-performance AI infrastructure.
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For traders, that enthusiasm has carried straight over into the Tradr 2X Long APLD Daily ETF APLX, a leveraged fund constructed to provide twice Applied Digital’s stock on a daily basis. And recently, it’s been fulfilling its mission.
APLX’s High-Voltage Performance
Launched earlier this year, APLX has quickly become the go-to vehicle for investors looking to turbocharge their exposure to APLD’s rollercoaster ride. The ETF thrives in exactly the kind of volatility Applied Digital provides, which can make or break short-term trading bets. The fund is up about 185% since its Sept. 9 low.
In the last five trading days alone, APLX has jumped almost 60%, exaggerating Applied Digital’s own breakout plays following the CoreWeave agreement. Its action highlights both the upside and danger of combining a very volatile stock with 2X daily leverage.
The fund has a 0.95% expense ratio, which keeps it in step with other specialty leveraged ETFs. That fee may raise an eyebrow in a conventional investing environment, but it’s a minor quibble for traders who see APLX as more of a tactical tool than a long-term holding.
A Double-Edged Sword
APLX’s dramatic gains capture the market’s increasing enthusiasm for Applied Digital’s shift into AI infrastructure and its alignment with industry giants such as Nvidia. But leverage is a two-way street. A series of declining days in Applied Digital could equally quickly erase APLX’s recent gains, a reminder that this ETF is designed for those willing to ride the highs and lows of extreme momentum.
Nevertheless, as Applied Digital solidifies its position as a leading AI infrastructure firm, APLX provides a high-energy alternative for traders willing to translate those seismic stock moves into leveraged ETF returns.
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