Shares of Applied Digital Corp. (NASDAQ: APLD) recently hit a new 52-week high, which might scare some investors away, worried about buying at the top of the cycle or valuation limits. However, making a decision based on a chart is often the wrong approach, as fundamentals are more important now than ever.
The technology sector is at a defining point in history, with valuations reaching new all-time highs nearly every week. Investors are torn between believing that “this time is different” or remembering that those are the most dangerous words in finance. While this time may not be different, some fundamental points suggest the rally in technology isn’t over.
