This Artificial Intelligence (AI) Infrastructure Stock Has Been Crushing Nvidia on the Market. Its Latest Deal Could Send the Stock Even Higher
Publish Date: 2026-06-15 17:19:00
Source Domain: www.theglobeandmail.com
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Rapid Growth: Applied Digital’s revenue surged by 96% in fiscal 2026, totaling $422 million, highlighting its phenomenal growth rate in the AI infrastructure sector.
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Substantial Lease Pipeline: The company boasts a robust revenue pipeline, with current contracts expected to bring in $36 billion in lifetime lease revenue and potentially $86 billion if all renewal options are exercised.
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Innovative AI Data Centers: Applied Digital designs, builds, and operates dedicated AI data centers that meet the needs of hyperscalers and neocloud companies, positioning itself as a critical player in AI infrastructure.
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Long-Term Contracts: A key long-term lease agreement will provide 210 MW of cloud computing capacity for 15 years, with the potential to extend to 30 years and generate $12.7 billion in revenue.
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Market Valuation: Despite a high stock valuation at 35 times sales, Applied Digital’s strong growth prospects and pipeline justify its expensive stock price.
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Investment Opportunity: With significant growth on the horizon, the company’s expansion efforts through additional data centers suggest potential for continued gains, although investors should consider recent valuation levels.
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Comparative Performance: Applied Digital’s stock has seen a 282% increase over the past year, outperforming rival Nvidia’s 44% increase over the same period.
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Cautious Advisory Note: Despite its potential, the Motley Fool Stock Advisor team did not pick Applied Digital as one of the top 10 stocks to buy, suggesting investors should proceed with caution.
