Applied Digital Corporation

Key Points
The S&P 500 has hit new record highs this year, but it's also near its most expensive valuation ever.
High market valuations typically precede crashes and corrections.
Whatever happens in the short term, the market's long-term future looks intact.
With the S&P 500 (SNPINDEX: ^GSPC) up more than 8% year to date, the market is gearing up for the fourth year in a row of gains. However, there are signs that the market is frothy. The S&P 500 could continue to thrive if valuations are in check and the economy is booming, but if valuations lose touch with reality, investors should definitely be concerned.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The cyclically adjusted P/E ratio, or CAPE ratio, measures the S&P 500's total price-to-earnings ratio based on the past 10 years' worth of average earnings, adjusted for inflation, which smooths out the distortions of any one unusually good — or bad — year. That makes it a more reliable measure of the market's value than the standard average P/E ratio. Today, the CAPE ratio is at its highest level in more than 25 years and the second-highest ever.
Here's what history says happens next.
Out of touch with reality
The CAPE ratio reached its peak of 44 in 2000, during the dot-com bubble. The Internet was still early in its widespread adoption, and companies were jumping on the web bandwagon. They were spending money like it was going out of style, and while that spending was largely unprofitable, their valuations kept ramping up.
The resulting implosion was epitomized by the ill-fated Pets.com, which bled money and collapsed, but many other companies were in the same boat. The market plummeted, resulting in three consecutive annual losses between 2000 and 2002 and a total loss of 40%.
There are many similarities between what happened then and what's happening now. Both times brought revolutions: the Internet then, and artificial intelligence (AI) today. Now, digital companies are selling things beyond the bounds of Earth itself, including moon landings and satellites, and there are matching valuations.
Bulls might say that this time is different from the dot-com bubble, because AI companies are highly profitable. However, that doesn't address the mounting CAPE ratio; companies may be profitable, but their stock gains are still outpacing their profit growth.
Is a market crash on the way?
This still doesn't mean that a market crash is imminent. There are parallels between then and now, as well as differences. Many of the most important AI companies are hyperscalers with decades-long track records of profitability, cash generation, and overall success. These aren't new, unproven companies that are asking for your confidence, but companies like Amazon and Alphabet, which are dominant in their spaces and backed by high-cash-generating businesses like Amazon Web Services and Alphabet's Google search.
However, there are many smaller AI-driven companies that rely on continued hyperscaler spending to keep growing and retain their high valuations, and many of these companies are barely profitable or not profitable at all, yet may sport fantastic valuations. Consider Iren, CoreWeave, and Applied Digital, which are all reporting losses but have all caught market attention as major players in the AI cycle.
The way to investing success isn't changing
There may not be an imminent market crash, but a correction is coming at some point. The high CAPE ratio points to it coming sooner rather than later, but the future is unknown.
The positive news for investors is that the market has always recovered and gone on to soar to new heights after any market crash or correction, and it's the best path to wealth for many Americans. In fact, the S&P 500 has gained 742% since it recovered in 2003.
Investors need to keep in mind that any market plunge could be deep and long, and they should plan accordingly. That includes building a diversified portfolio with around 50 stocks, plenty of which should be in the defensive and value sectors. Then, you can be comfortable investing in growth stocks, too, and feel confident about the long-term future of the market.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 29, 2026.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Stock Market Valuation Metric Just Hit a Two-Decade High. Here's What History Says the S&P 500 Does Next.

The NASDAQ 100 After Hours Indicator is up 30.88 to 27,794.02. The total After hours volume is currently 165,496,136 shares traded.
The following are the most active stocks for the after hours session:
NVIDIA Corporation (NVDA) is +0.24 at $197.25, with 7,590,624 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2026. The consensus EPS forecast is $2.01. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Applied Digital Corporation (APLD) is +0.08 at $26.70, with 7,444,102 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range".
IREN Limited (IREN) is +0.14 at $34.07, with 5,947,285 shares traded. As reported by Zacks, the current mean recommendation for IREN is in the "buy range".
Apple Inc. (AAPL) is +0.03 at $340.11, with 5,389,404 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $2.95. AAPL is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.88 per share, which represents a 157 percent increase over the EPS one Year Ago
Intel Corporation (INTC) is +0.48 at $86.78, with 4,759,620 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $0.19. INTC's current last sale is 75.46% of the target price of $115.
Amazon.com, Inc. (AMZN) is -0.16 at $230.70, with 4,726,427 shares traded.AMZN is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.81 per share, which represents a 168 percent increase over the EPS one Year Ago
Kinder Morgan, Inc. (KMI) is unchanged at $31.61, with 4,715,234 shares traded. KMI's current last sale is 87.81% of the target price of $36.
Ford Motor Company (F) is +1.2 at $16.16, with 4,107,636 shares traded. Smarter Analyst Reports: Ford Plans Reorganization into EV and ICE Business Units – Report
Wells Fargo & Company (WFC) is -0.0609 at $86.81, with 2,822,878 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $1.84. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Carnival Corporation Ltd. (CCL) is +0.04 at $28.27, with 2,682,654 shares traded. As reported by Zacks, the current mean recommendation for CCL is in the "buy range".
AT&T Inc. (T) is +0.0055 at $24.67, with 2,443,665 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.62. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Bloom Energy Corporation (BE) is +22.01 at $188.85, with 2,299,289 shares traded. BE's current last sale is 66.26% of the target price of $285.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Jul 28, 2026 : NVDA, APLD, IREN, AAPL, INTC, AMZN, KMI, F, WFC, CCL, T, BE

(RTTNews) - Applied Digital Corp. (APLD) on Monday reported a loss for the fourth quarter that widened from last year, as a surge in revenues reflecting demand for its AI-focused data center business was offset by higher operating expenses.
For the fourth quarter, net loss widened to $110.6 million or $0.39 per share from a loss of $53.1 million or $0.24 per share in the year-ago period. On an adjusted basis, the company earned $12.9 million or $0.04 per share compared with an adjusted net loss of $7.6 million or $0.03 per share a year earlier.
Revenues surged to $258.7 million from $51.1 million last year. Adjusted revenue increased to $240.4 million from $38.0 million. The growth was driven primarily by the HPC Hosting business, including tenant fit-out services and rental revenue from the Polaris Forge 1 campus.
Total costs and expenses for the quarter rose to $383.6 million from $95.2 million last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Applied Digital Q4 Loss Widens As Higher Operating Costs Offset Revenue Surge

Key Points
Leopold Aschenbrenner's hedge fund has been one of the top performers.
His 20% stake in Sharon AI drew a lot of attention to the stock, which is a smaller version of CoreWeave.
A quickly growing megawatt pipeline is good, but not owning the land, data centers, or power can result in higher future costs.
SharonAI Holdings (NASDAQ: SHAZ) got on more people's radars when artificial-intelligence (AI) investing genius Leopold Aschenbrenner revealed that his hedge fund owns 20% of its shares.
Aschenbrenner's Situational Awareness hedge fund returned more than 2,000% in 2025 and has more than doubled so far this year. That's why many growth investors pay attention when he makes a move.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
A small stake in SharonAI would have been enough to draw some attention, but a 20% position? SharonAI has certainly done its part for Aschenbrenner so far. It has more than doubled year to date, and further gains may be around the corner.
A power shortage play
SharonAI is a neocloud provider that leases out data center space powered by its own AI chips. This setup is very similar to CoreWeave (NASDAQ: CRWV) and enables the company to scale without building data centers from scratch.
This model lets SharonAI scale with less overhead, but not owning land can be costly in the long run. However, megawatts are extremely valuable right now, especially for neocloud providers that have their own chips. That value proposition helped SharonAI land Canva, GMI Computing, and an unnamed U.S. company as new customers in the first quarter.
The company is still small but growing quickly. Q1 results revealed that it hoped to increase data center capacity from 50 megawatts to 100 megawatts by early 2027. Meanwhile, a July press release revealed that it has 116 megawatts of contracted capacity, marking a substantial increase in a short amount of time.
Megawatt capacity is expected to be a major AI theme in the years ahead. As companies create more AI-enabled products and attract more customers, they will need more megawatts to keep up with customer demand. SharonAI is well positioned to address this bottleneck.
Comparing SharonAI to CoreWeave
CoreWeave is the main comparable to SharonAI, so it's good to assess CoreWeave's megawatt pipeline, market cap, and long-term goals. The company has more than one gigawatt of active power, roughly nine times more than SharonAI. CoreWeave's $45 billion market cap is also 18 times bigger than SharonAI's $2.5 billion market cap.
If SharonAI traded at the same valuation at CoreWeave based on contracted megawatts, the stock would have to double from its recent price of about $72. However, CoreWeave has forecast more than eight gigawatts of active power by 2030. It's an aggressive goal, but the fact that CoreWeave is pushing toward it explains the premium.
SharonAI has demonstrated that it can accumulate megawatts much faster than initial projections. Aschenbrenner seems to be betting heavily on that scenario.
Not owning land makes it riskier in the long run
Investors who like CoreWeave may also like this growth stock, but there is a significant risk in not owning the land. Landlords can charge much higher rates when it's time to renew leases. That can pressure margins, which remain a concern. SharonAI is still unprofitable at this time.
Iren (NASDAQ: IREN) and Nebius (NASDAQ: NBIS) strive to own their land, data centers, AI chips, and power. Co-location companies like Cipher Mining (NASDAQ: CIFR) and TeraWulf (NASDAQ: WULF) own their land, data centers, and power, but not AI chips.
The co-location model involves having a customer bring their own chips, while SharonAI has the chips but not the land. Aschenbrenner is well-diversified across neocloud plays, but Nebius is by far his largest position. It makes up 40% of his hedge fund's portfolio, while a little more than 6% of the fund's capital is in SharonAI.
Notably, Aschenbrenner has a larger percentage of SharonAI shares than Iren and Applied Digital (NASDAQ: APLD). This approach can work if SharonAI expands its contracted megawatts faster than anticipated and improves its margins, but it is a high-risk stock, which has become the norm in the artificial intelligence industry.
Should you buy stock in SharonAI right now?
Before you buy stock in SharonAI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SharonAI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 25, 2026.
Marc Guberti has positions in Cipher Mining and Iren. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AI Investing Genius Leopold Aschenbrenner Owns 20% of This AI Stock. Should You Buy It Too?

The NASDAQ 100 After Hours Indicator is up 7.25 to 28,135.59. The total After hours volume is currently 117,914,145 shares traded.
The following are the most active stocks for the after hours session:
First Trust Nasdaq Pharmaceuticals ETF (FTXH) is unchanged at $38.97, with 19,649,486 shares traded. This represents a 51.25% increase from its 52 Week Low.
Rocket Companies, Inc. (RKT) is +0.11 at $13.16, with 3,753,713 shares traded.RKT is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 0.13 per share, which represents a -4 percent increase over the EPS one Year Ago
First Trust Nasdaq Transportation ETF (FTXR) is +0.12 at $45.30, with 3,687,277 shares traded. This represents a 44.31% increase from its 52 Week Low.
Applied Digital Corporation (APLD) is +0.19 at $27.38, with 3,488,657 shares traded.APLD is scheduled to provide an earnings report on 7/27/2026, for the fiscal quarter ending May2026. The consensus earnings per share forecast is -0.2 per share, which represents a -12 percent increase over the EPS one Year Ago
NVIDIA Corporation (NVDA) is +0.03 at $206.87, with 3,461,917 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2026. The consensus EPS forecast is $2.01. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Planet Labs PBC (PL) is +0.0324 at $20.50, with 2,236,522 shares traded. PL's current last sale is 51.26% of the target price of $40.
Invesco QQQ Trust, Series 1 (QQQ) is +3.4963 at $687.73, with 2,216,617 shares traded. This represents a 24.66% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.47 at $333.49, with 1,933,934 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $2.95. AAPL is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.88 per share, which represents a 157 percent increase over the EPS one Year Ago
Healthpeak Properties, Inc. (DOC) is unchanged at $22.27, with 1,393,359 shares traded. DOC's current last sale is 101.23% of the target price of $22.
Bristol-Myers Squibb Company (BMY) is +0.05 at $62.14, with 1,344,881 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $1.57. BMY is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.59 per share, which represents a 146 percent increase over the EPS one Year Ago
Kinross Gold Corporation (KGC) is -0.01 at $23.84, with 1,310,715 shares traded.KGC is scheduled to provide an earnings report on 7/29/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 0.67 per share, which represents a 44 percent increase over the EPS one Year Ago
Pfizer, Inc. (PFE) is +0.01 at $24.55, with 1,309,708 shares traded. PFE's current last sale is 87.68% of the target price of $28.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Jul 24, 2026 : FTXH, RKT, FTXR, APLD, NVDA, PL, QQQ, AAPL, DOC, BMY, KGC, PFE

IREN Limited IREN is moving beyond its Bitcoin-mining roots and building an identity around AI cloud services and data-center infrastructure. New contracts, secured power and a wider construction pipeline are giving investors a clearer view of how AI could become the company’s main earnings engine.
The market has rewarded the story, but the ride remains rough. IREN shares were up nearly 19.5% from the prior session on July 20 after the company announced $2.8 billion of new multiyear AI cloud contracts and lifted its year-end 2026 annualized AI cloud revenue target.
Over the past year, IREN shares have climbed strongly, although recent trading has shown sharp swings as investors weigh capital needs, dilution and execution risk. Over comparable trailing periods, TeraWulf Inc. WULF and Applied Digital Corporation APLD have also delivered large gains, highlighting the enthusiasm surrounding the crypto operators moving into AI infrastructure.
One-Year Price Performance
Image Source: Zacks Investment Research
IREN now sits at an important stage. Management must convert contracted capacity into live revenues while funding a very large buildout. That creates a mix of strong growth potential and meaningful risk. The next few quarters should show whether IREN can turn its growing AI pipeline into durable cash flow and justify the market’s expectations.
AI Contracts Are Changing IREN's Revenue Mix
The strongest part of the investment case is the speed of IREN’s commercial progress. In May, the company announced a five-year, $3.4 billion AI cloud contract with NVIDIA NVDA. The agreement covers managed cloud services using Blackwell systems deployed across roughly 60 megawatts at its Childress campus.
IREN subsequently added $2.8 billion of multiyear contracts with AI developers and raised its year-end 2026 AI cloud annualized run-rate revenue target from $3.7 billion to more than $4 billion. About 85% of that target is now under contract, while the customer list includes Microsoft, NVIDIA, Perplexity and several AI software developers.
This suggests IREN is no longer selling only a distant plan. AI cloud revenues reached $33.6 million in the March-end quarter, almost doubling sequentially, while Bitcoin-mining revenues fell as equipment was retired to make room for GPU deployments. Management described the quarter as part of a deliberate transition toward the higher-value AI cloud market.
Power and Construction Scale Offer an Advantage for IREN
IREN said that it has assembled 5 gigawatts of secured power across North America and Europe, with additional development opportunities in Australia. It plans to deliver 480 megawatts of AI cloud capacity during 2026 and expand to roughly 1.2 gigawatts in 2027.
Its existing mining facilities may provide an additional advantage. Some can be converted for air-cooled GPUs faster and at a lower cost than building entirely new liquid-cooled data centers. This could help IREN bring computing capacity to market while supply remains tight.
Funding Needs and Execution Risks Remain High for IREN
The main concern is the cost of delivering the plan. IREN reported $2.6 billion of cash as of April 30, and preliminary cash and equivalents of about $7.6 billion as of June 30, including restricted funds connected with GPU financing. Recent customers are also providing prepayments equal to roughly 45% of associated GPU spending.
Even so, the full expansion will require considerable capital. Additional borrowing, equity issuance or partner funding could reduce future shareholder returns.
The latest results also showed the near-term cost of the pivot. Quarterly revenues were $144.8 million, adjusted EBITDA was $59.5 million, and the company recorded a $247.8 million net loss, partly because of noncash mining-equipment impairments.
IREN may have a large contracted AI cloud opportunity, but its valuation is increasingly based on capacity that has not yet been fully commissioned. Construction delays, weaker pricing or higher financing costs could therefore produce another sharp stock correction.
IREN's Estimates and Valuation
Estimates for IREN’s 2026 and 2027 earnings have remained unchanged in the past 30 days. However, the company is expected to report a profit in the next year.
Image Source: Zacks Investment Research
On an enterprise-value-to-sales basis, IREN appears cheaper than both TeraWulf and Applied Digital. IREN trades at about 16.05 times trailing sales compared with roughly 25.54 times for Applied Digital and 57.00 times for TeraWulf. All three multiples remain high because investors are valuing future AI capacity that has not yet fully contributed to reported revenues. IREN’s lower multiple offers some relative valuation support, but it does not make the stock inexpensive in absolute terms.
Valuation
Image Source: Zacks Investment Research
Investment View: Hold IREN for Now
IREN’s AI pivot has moved from an attractive idea to a credible growth platform backed by major customers, expanding capacity and valuable power assets. The NVIDIA relationship, rising contracted revenues and rapid cloud buildout support a positive long-term view.
However, the stock already reflects strong execution expectations, while construction delays, customer concentration, funding needs and possible dilution remain important risks. Current shareholders can reasonably stay invested while watching contract conversion, margins and cash requirements. New investors may be better served waiting for a calmer entry point or clearer evidence of recurring profitability.
At present, IREN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IREN's AI Pivot Gains Strong Momentum: Time to Buy or Hold the Stock?

Key Points
CoreWeave currently demonstrates a stronger position on revenue, maintaining a substantially higher baseline than Applied Digital.
Over the last eight quarters, CoreWeave recorded consistent quarter-over-quarter revenue increases, while Applied Digital experienced a more volatile quarter-over-quarter pattern.
Investors should watch whether the revenue gap between the two companies continues to widen in upcoming quarters.
CoreWeave: Consistent Revenue Expansion
CoreWeave (NASDAQ:CRWV) operates a specialized cloud computing environment that provides bare-metal virtual servers, storage solutions, and advanced networking resources for enterprise clients.
It recently faced a class action lawsuit regarding customer demand statements, and it reported a -36% net income margin for the quarter ended March 31, 2026.
Applied Digital: Managing Data Center Operations
Applied Digital (NASDAQ:APLD) designs, develops, and manages digital infrastructure and data center solutions for high-performance computing industries and specialized hosting customers across North America.
It completed the separation of its cloud business into a new entity on May 5, 2026, while recording a -78% net income margin for the quarter ended Feb. 28, 2026.
Why Revenue Matters for Retail Investors
Revenue shows the total money a business brings in during a specific period before any expenses are deducted, helping investors gauge the overall size and scale of operations.
Quarterly Revenue for CoreWeave and Applied Digital
Quarter (Period End)
CoreWeave Revenue
Applied Digital Revenue
Q2 2024
$395.4 million (period ended June 2024)
$14.7 million (period ended May 2024)
Q3 2024
$583.9 million (period ended Sept. 2024)
$60.7 million (period ended Aug. 2024)
Q4 2024
$747.4 million (period ended Dec. 2024)
$63.9 million (period ended Nov. 2024)
Q1 2025
$981.6 million (period ended March 2025)
$52.9 million (period ended Feb. 2025)
Q2 2025
$1.2 billion (period ended June 2025)
$38.0 million (period ended May 2025)
Q3 2025
$1.4 billion (period ended Sept. 2025)
$64.2 million (period ended Aug. 2025)
Q4 2025
$1.6 billion (period ended Dec. 2025)
$126.6 million (period ended Nov. 2025)
Q1 2026
$2.1 billion (period ended March 2026)
$126.6 million (period ended Feb. 2026)
Data source: Company filings. Data as of July 16, 2026.
Foolish Take
CoreWeave and Applied Digital share a symbiotic relationship. Applied Digital rents out its data centers to CoreWeave. That adds an interesting twist to the revenue comparison between the two, since CoreWeave sales are soaring while Applied Digital is showing a more modest pace of growth, an indication of the differences in their business models.
CoreWeave’s focus on renting out computing power to artificial intelligence customers is driving its spectacular sales expansion. In the first quarter, revenue surpassed $2 billion, and the company announced a backlog of business worth nearly $100 billion. This bodes well for a continuation of its sales growth trend. However, supplying the equipment needed to support AI is expensive, and the company has amassed about $25 billion in debt at the end of Q1.
As a data center landlord, Applied Digital enjoyed a 139% year-over-year increase in revenue to $126.6 million for its fiscal third quarter ended Feb. 28. But like CoreWeave, it had to take on debt to continue building data centers with about $2.6 billion on its fiscal Q3 balance sheet.
The high debt load for each has turned off Wall Street investors, leading to a drop in share price for both companies. But of the two, CoreWeave’s price-to-sales ratio of six is around a low point for the past year, while Applied Digital is far more expensive with a sales multiple of 21.
Should you buy stock in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Robert Izquierdo has positions in CoreWeave. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CoreWeave vs. Applied Digital: Evaluating Disparities in Revenue Scale for These Artificial Intelligence Companies

Applied Digital (NASDAQ: APLD) just added more operational AI capacity at Polaris Forge 1, giving investors a fresh data point on its repeatable growth model. The opportunity is clear: turn raw power into leased AI infrastructure. But the stock's valuation means execution needs to keep matching expectations.
Stock prices used were the market prices of July 8, 2026. The video was published on July 16, 2026.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Should you buy stock in Applied Digital right now?
Before you buy stock in Applied Digital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Digital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,351!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,304,257!*
Now, it’s worth noting Stock Advisor’s total average return is 934% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 17, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Applied Digital Just Hit a Key AI Infrastructure Milestone. Is the Stock a Buy?

The S&P 500 Index ($SPX) (SPY) on Thursday closed down -0.51%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.62%. September E-mini S&P futures (ESU26) fell -0.50%, and September E-mini Nasdaq futures (NQU26) fell -1.58%.
Stock indexes settled lower on Thursday, with the Nasdaq 100 falling to a 1-week low. The weakness in chipmakers and AI-infrastructure stocks weighed on the overall market on Thursday amid concerns over whether massive artificial intelligence investments will justify current lofty valuations. Chipmakers had negative carryover pressure on Thursday from a -6% plunge in South Korea’s Kospi Index, which was weighed down by sharp losses in SK Hynix and Samsung Electronics.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Also weighing on the broader market on Thursday was weakness in cloud infrastructure stocks and a selloff in mining stocks after gold, silver, and copper prices slumped. In addition, Alphabet fell by more than -4% after Google was said to be months behind schedule in delivering its most powerful AI model.
While most chipmaking-related stocks retreated on Thursday, technology laggards such as software stocks rose as investors rotated into underperforming sectors. Also, trucking companies rallied after JB Hunt Transport Services reported stronger-than-expected Q2 revenue, and Abbott Laboratories soared by more than +10% after raising its full-year adjusted EPS forecast.
Thursday’s US economic reports were generally positive for the economy but hawkish on Fed policy, pushing bond yields higher; the 10-year T-note yield is up by +2 bp to 4.57%.
US weekly initial unemployment claims unexpectedly fell -8,000 to a 10-week low of 208,000, showing a stronger labor market than expectations of an increase to 217,000.
US Jun retail sales rose +0.2% m/m, right on expectations. However, Jun retail sales ex-autos fell -0.2% m/m, weaker than expectations of -0.1% m/m.
The US Jul Philadelphia Fed business outlook survey rose +31.1 to a 4.5-year high of 41.4, stronger than expectations of 12.5.
US Jun pending home sales fell -5.4% m/m, weaker than expectations of -0.5% m/m and the steepest decline in 6 months.
The US Jul NAHB housing market index unexpectedly fell -2 to 34, weaker than expectations of no change at 35.
Fed comments on Thursday were hawkish and negative for stocks and bonds. Kansas City Fed President Jeff Schmid said, "his primary concern is inflation, which is too hot and has been above target for too long. As such, my focus remains on inflation in setting the correct course for monetary policy." Also, Dallas Fed President Lorie Logan said, "I currently believe modestly higher interest rates would better balance the outlook and risks" for the Fed's dual mandate of price stability and full employment.
Geopolitical risks remain as the US launched fresh airstrikes on Iran and struck a sanctioned Iranian oil tanker in the Persian Gulf. Iran responded by firing upon American bases in Kuwait and Jordan, with the Jordanian government saying it intercepted eight missiles. President Trump pledged to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway.
The Wall Street Journal reported on Thursday that President Trump is leaning toward expanding military operations and discussed the seizure of Kharg Island, Iran’s main oil export terminal. According to RBC Capital Markets LLC, a seven-day moving average of oil flows through the Strait of Hormuz has slumped to 3.9 million bpd from 8.5 million bpd before the collapse of the ceasefire.
The outlook for strong Q2 earnings, which began this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
The markets are discounting a 10% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 recovered from a 1-week low and closed up +0.29%. China's Shanghai Composite fell to a 3.5-month low and closed down -1.85%. Japan's Nikkei-225 Stock Average closed down -2.79%.
Interest Rates
September 10-year T-notes (ZNU6) on Thursday closed down -5 ticks, and the 10-year T-note yield rose +2.0 bp to 4.567%. Stronger-than-expected US economic reports on Thursday weighed on T-note prices after weekly initial unemployment claims unexpectedly fell to a 10-week low and the Jul Philadelphia Fed business outlook survey rose more than expected to a 4.5-year high. T-notes were also under pressure amid hawkish comments from Kansas City Fed President Jeff Schmid and Dallas Fed President Lorie Logan, who said they favored tighter Fed policy to bring down inflation. T-notes recovered from their worst levels after stocks retreated, which boosted safe-haven demand for T-notes.
European government bond yields moved higher on Thursday. The 10-year German bund yield rose to a 1.75-month high of 3.164% and finished up +1.2 bp to 3.134%. The 10-year UK gilt yield rose +2.8 bp to 4.966%.
UK May monthly GDP rose +0.1% m/m, stronger than expectations of no change m/m.
UK May manufacturing production unexpectedly rose +0.1% m/m, stronger than expectations of a -0.2% m/m decline.
Swaps are discounting a 7% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off on Thursday, weighing on the broader market. The iShares Semiconductor ETF (SOXX) fell to a 5-week low, closing down more than -4%. SanDisk (SNDK) closed down more than -12% to lead losers in the S&P 500, and Seagate Technology Holdings Plc (STX) closed down -10%. Also, Western Digital (WDC) closed down more than -9%, and Marvel Technology (MRVL) closed down more than -8%. In addition, ARM Holdings Plc (ARM), Intel (INTC), Micron Technology (MU), Advanced Micro Devices (AMD), Microchip Technology (MCHP), and Broadcom (AVGO) closed down more than -5%, and Lam Research (LRCX) and Qualcomm (QCOM) closed down more than -4%.
Cloud infrastructure stocks slumped on Thursday. Nebius Group NV (NBIS) closed down more than -13% to lead losses in the Nasdaq 100, and Applied Digital (APLD) closed down more than -8%. Also, Oracle (ORCL) closed down more than -6%, and CoreWeave (CRWV) closed down more than -5%.
Mining stocks fell on Thursday as gold, silver, and copper prices sold off. Coeur Mining (CDE) closed down more than -6%, and Hecla Mining (HL) closed down more than -5%. Also, Freeport McMoran (FCX) and Newmont Corp (NEM) closed down more than -4%, and Anglogold Ashanti (AU), Barrick Mining (B), and Southern Copper (SCCO) closed down more than -3%.
Cryptocurrency-exposed stocks slid on Thursday along with Bitcoin (^BTCUSD). Galaxy Digital Holdings (GLXY) closed down more than -9%, and MARA Holdings (MARA) and Circle Internet Group (CRCL) closed down more than -7%. Also, Riot Platforms (RIOT) closed down more than -6%, Coinbase Global (COIN) closed down more than -4%, and Strategy (MSTR) closed down more than -3%.
JB Hunt Transport Services (JBHT) is up more than +8% to lead trucking companies higher after reporting Q2 revenue of $3.50 billion, better than the consensus of $3.25 billion. Also, FedEx Freight Holding (FDXF) and XPO Inc (XPO) closed up more than +7%, and ArcBest (ARCB) closed up more than +6%. In addition, Saia Inc (SAIA), Old Dominion Freight Line (ODFL), and Knight-Swift Transportation Holdings (KNX) closed up more than +5%, and CH Robinson Worldwide (CHRW) closed up more than +4%. Finally, Marten Transport Ltd (MRTN) and United Parcel Service (UPS) closed up more than +3%.
AST SpaceMobile (ASTS) closed down more than -17% after announcing its intent to offer $1.0 billion of convertible senior notes due 2034 in a private offering.
Alphabet (GOOGL) closed down more than -4% after Google was said to be months behind schedule on delivering its most powerful AI model.
GE Aerospace (GE) closed down more than -4% despite the company raising its adjusted earnings per share guidance for the full year after TD Cowen said the raise “may not be good enough.”
United Airlines Holdings (UAL) closed down more than -1% after forecasting full-year adjusted EPS of $9 to $11, the midpoint below the consensus of $10.51.
Abbott Laboratories (ABT) closed up more than +10% to lead gainers in the S&P 500 after raising its full-year adjusted EPS forecast to $5.45 to $5.60 from a previous forecast of $5.38 to $5.58, the midpoint above the consensus of $5.48.
AeroVironment (AVAV) closed up more than +5% after Raymond James upgraded the stock to outperform from neutral with a price target of $210.
Merck & Co (MRK) closed up more than +3% after the USDA approved the company’s Lipfendra medication pill to reduce LDL cholesterol.
Rocket Cos (RKT) closed up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $19.
UnitedHealth Group (UNH) closed up more than +1% after reporting Q2 adjusted EPS of $6.38, well above the consensus of $4.89, and raising its full-year adjusted EPS estimate to $19.50 to $20.00 from a previous estimate of above $18.25.
Earnings Reports(7/17/2026)
Fifth Third Bancorp (FITB), Regions Financial Corp (RF), Travelers Cos Inc/The (TRV), Truist Financial Corp (TFC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Lower as Chipmakers and AI Stocks Slump

Key Points
TeraWulf recently signed a 20-year deal with Anthropic, prompting one analyst to predict that the stock will more than triple from current levels.
Applied Digital has an easier path to building neocloud data centers since it does not supply the servers or AI chips.
Access to sufficient computing power has become a major constraint for artificial intelligence systems. This explains why hyperscalers are not just rushing to build their own data centers, but also sealing long-term deals for more compute with neocloud companies like Applied Digital (NASDAQ: APLD) and TeraWulf (NASDAQ: WULF).
TeraWulf made the news recently for the 20-year, $19 billion deal it just inked with Anthropic. That agreement covers 401 megawatts of critical IT load, which will become available in waves. The full 401 megawatts should be online by early 2028.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
That announcement earned TeraWulf a price target adjustment from Morgan Stanley's analyst, who bumped it to a Street-high $72. That implies that the stock will more than triple from current levels in the next 12 months. It isn't just good news for TeraWulf. It points to broader tailwinds that will also lift Applied Digital.
Understanding gigawatt pipelines
When a deal like the Anthropic one is announced, it doesn't translate into immediate revenue. Neocloud companies are investing heavily into building AI data centers and have multiple construction projects underway. That's why the full 401 megawatts that the AI giant is contracting for won't be available until early 2028.
Applied Digital touted in an investor presentation that it has 3 gigawatts of active pipeline projects, while TeraWulf only has 2.3 gigawatts in its portfolio. Securing more gigawatts of electricity to power future data centers increases a company's earnings potential, so Applied Digital has the edge in that regard.
However, anytime a company adds a new data center site, it isn't small. Those sites often have hundreds of megawatts. TeraWulf or Applied Digital can suddenly come out with an announcement saying that they got another AI data center site, which can either close or expand the gap by a meaningful margin. When it comes to the quantity of gigawatts, Applied Digital is currently ahead, and that gives them a higher ceiling.
TeraWulf owns its power
Although TeraWulf has fewer AI data centers, it does have an edge over Applied Digital when it comes to power. TeraWulf makes it a point to own its power, while Applied Digital signs long-term electricity supply agreements with utility companies.
Applied Digital's approach is cheaper right now and lets it complete AI data centers sooner. It also requires its customers to bring their own AI chips and servers, while TeraWulf provides computing hardware in its facilities. These differences make it easier for Applied Digital to realize more revenue at a faster rate, but its business model also makes it dependent on the electric grid. Requiring customers to bring their own hardware also lowers how much Applied Digital can charge for each megawatt of critical IT load.
An overstrained electric grid can cause issues, and when Applied Digital renegotiates utility leases when they expire, the company may have to pay much higher prices. That scenario is especially possible as a growing number of AI data centers will be competing for the same power supply.
TeraWulf develops on-site power generation assets at its data centers. This strategy means it takes a little longer for its data centers to be completed, but it also ensures that TeraWulf won't have to rely on the power grid. It incurs higher costs now for more control over future costs and power availability. In the long run, it is much better to own power generation capacity than to lease it.
The contracts with hyperscalers
TeraWulf has 923 megawatts of critical IT load contracted to clients. Anthropic makes up almost half of that total. TeraWulf is aiming to support 250 megawatts to 500 megawatts of additional critical IT load signings per year, which could result in meaningful net operating income growth once the sites are fully developed.
TeraWulf is targeting an 85% net operating income margin on contracts, showing that profits can scale quickly as well.
Applied Digital has 1.41 gigawatts of contracted critical IT load. Once again, Applied Digital has a slight edge, but a single announcement from either of these companies can meaningfully close or expand the gap. For instance, TeraWulf's contracted critical IT load jumped from 522 megawatts to 923 megawatts on a single Anthropic deal.
Applied Digital also signs long-term deals with tech giants. The company recently secured a 15-year take-or-pay lease with an unnamed, high investment-grade hyperscaler that is based in the U.S.
The deal covers 210 megawatts of critical IT load for approximately $5.2 billion over 15 years. The contract's value can reach $12.7 billion if all renewable options are exercised over a 30-year term.
Applied Digital has an edge when it comes to total gigawatts and contracted critical IT load. However, a single deal from TeraWulf could close these gaps. The main advantage of TeraWulf is that it owns its power, which could matter a lot in the years ahead.
Should you buy stock in TeraWulf right now?
Before you buy stock in TeraWulf, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TeraWulf wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,679!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,805!*
Now, it’s worth noting Stock Advisor’s total average return is 929% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.