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Applied Digital vs. CoreWeave: Which AI Cloud Stock Is a Better Buy?
11 months agoUS
As artificial intelligence transforms global computing, Applied Digital (APLD) and CoreWeave (CRWV) are becoming vital infrastructure providers. Both shifted from crypto and general hosting to focus on high-performance computing (HPC) and AI-optimized data centers, positioning themselves to meet the rising demand for GPU-powered infrastructure.
Key Insights
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Market Positioning: Both APLD and CRWV are capitalizing on the AI infrastructure boom.
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Financial Performance: CoreWeave’s Q1 2025 revenues reached $438 million, a 4x year-over-year increase, while Applied Digital’s fiscal 2025 revenues are estimated to cross $200 million.
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Growth Strategies: APLD focuses on liquid-cooled, high-density data centers, while CRWV operates 33 AI data centers across the US and Europe with exclusive long-term contracts.
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Analyst Ratings: APLD has received multiple "Buy" ratings from analysts, with price targets ranging from $7 to $18.
In-Depth Analysis
Applied Digital (APLD) is transitioning from crypto hosting to HPC and AI infrastructure. Their fiscal 2025 revenues are expected to exceed $200 million, driven by data center hosting, AI cloud infrastructure, and HPC segments. The Ellendale campus is a key revenue growth driver.
APLD focuses on liquid-cooled, high-density data centers optimized for AI workloads and signs long-term contracts with AI service providers to reduce volatility. Shares of APLD have rallied 154.7% in the past three months and trade at a forward sales multiple of 8.37.
CoreWeave (CRWV) reported exceptional Q1 2025 performance with $438 million in revenues, driven by AI workload demand. They operate 33 AI data centers and have exclusive long-term contracts. Management projects 2025 revenues to reach $5 billion. CRWV’s shares have surged 265.9% in the past three months, with a forward sales multiple of 8.11.
FAQs
What are the primary growth drivers for Applied Digital?
Transitioning to AI infrastructure, liquid-cooled data centers, and long-term contracts.
What is CoreWeave’s expansion strategy?
Operating purpose-built AI data centers and securing exclusive long-term contracts.
Key Takeaways
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Applied Digital and CoreWeave are key players in the AI infrastructure market.
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APLD presents an early-stage growth opportunity, while CRWV has already scaled significantly.
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Analyst ratings suggest a positive outlook for APLD, with potential for outperformance.
Discussion
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