CoreWeave vs Applied Digital: Which AI Stock Wins?

CoreWeave (CRWV) and Applied Digital (APLD) are two AI infrastructure companies with vastly different revenue scales. CoreWeave, which provides cloud computing services for AI workloads, reported $2.1 billion in revenue for the quarter ended March 2026, a fivefold increase from $395 million in Q2 2024. In contrast, Applied Digital, which designs and manages data centers, reported $126.6 million in revenue for its fiscal Q3 ended February 2026, up from $14.7 million in Q2 2024.

Interestingly, the two companies have a symbiotic relationship: Applied Digital rents out its data centers to CoreWeave. This means CoreWeave's explosive growth directly benefits Applied Digital, but the revenue disparity highlights their different business models. CoreWeave focuses on renting computing power to AI customers, while Applied Digital acts more as a landlord.

Both companies face financial challenges. CoreWeave has a -36% net income margin and $25 billion in debt, while Applied Digital has a -78% net income margin and $2.6 billion in debt. These figures underscore the capital-intensive nature of the AI infrastructure business.

Despite the debt, CoreWeave announced a backlog of nearly $100 billion, suggesting strong future demand. Applied Digital's revenue growth has been more volatile, but its latest quarter showed a 139% year-over-year increase, indicating potential acceleration.

For investors, revenue growth is a key indicator of a company's market traction. CoreWeave's rapid revenue expansion suggests it is capturing significant market share in the AI cloud space, driven by insatiable demand for computing power. Its $100 billion backlog provides visibility into future revenue, which could support its high valuation.

However, the massive debt load and negative margins raise concerns about profitability and financial sustainability. If AI demand slows or competition intensifies, CoreWeave could struggle to service its debt, potentially leading to dilution or distress.

Applied Digital's slower but accelerating revenue growth reflects its role as a data center landlord. While it benefits from CoreWeave's expansion, its own growth is more modest. The -78% net income margin is alarming, but the company is still in an investment phase. Its 21x price-to-sales multiple suggests the market is pricing in high future growth, which may be optimistic given the competitive landscape.

Both stocks are high-risk, high-reward plays. CoreWeave offers more direct exposure to AI demand, while Applied Digital provides a more indirect, potentially less volatile path. Investors should weigh the growth potential against the financial risks.