Applied Digital APLD and Core Scientific CORZ are emerging powerhouses in the rapidly growing AI infrastructure space, each racing to meet surging demand for high-performance data centers. As AI workloads accelerate and investors seek exposure to the digital backbone behind them, both companies have attracted major partnerships — APLD with Nvidia and Macquarie, and CORZ with CoreWeave.
While APLD touts aggressive expansion plans and growth in cloud services, CORZ is already executing large-scale AI hosting deals with billions in potential revenues. With both stocks offering compelling upside, the question remains: Which AI data center stock makes for a better investment pick now?
Financial Comparison
Applied Digital reported third-quarter fiscal 2025 revenues of $52.9 million, representing a 22% year-over-year increase. The figure, however, missed estimates by $9.99 million. Loss per share was 16 cents, which lagged estimates by 45.5%. Adjusted EBITDA rose sharply to $10 million, though the company still posted a $36.1 million net loss.
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In contrast, Core Scientific posted significantly higher revenues of $79.5 million for the first quarter of 2025, though the figure was down 55.7% year over year. Loss per share was 10 cents, which beat expectations by 16.7%. Adjusted EBITDA was negative $6.1 million against $88 million in the year-ago quarter. The quarter was affected by reduced Bitcoin production as sites transitioned to high-density colocation.
Strength of AI Strategy
APLD’s AI strategy centers around its Cloud Services segment and Ellendale campus, which is under construction. However, APLD announced plans to divest the Cloud business due to conflicts with its data center leasing model and future REIT aspirations. Four of the six GPU clusters remain under reserve contracts, while the other two are on-demand. This shift led to some technical hiccups during the quarter.
Meanwhile, CORZ has embedded AI infrastructure into its core operations. Its foundational partnership with CoreWeave includes a take-or-pay structure, where CoreWeave funds nearly all CapEx for up to 590MW of AI-focused capacity by 2027. These contracts include risk-sharing mechanisms and are seen as highly capital-efficient. CORZ is already delivering 8MW and targets 250MW by year-end.
Growth Prospects
APLD’s growth hinges on its 400MW+ Ellendale development, with 100MW expected online by fourth-quarter 2025. Two additional buildings (each 150MW) are scheduled for 2026 and 2027. It has a 1.4GW pipeline and financial backing from Macquarie (up to $5B) and SMBC ($375M)
CORZ plans to deliver 250 MW to CoreWeave by the end of 2025 and 590 MW by early 2027. Additionally, it expects to expand 300 MW at existing sites and develop another 400 MW in new geographies. The company is also pursuing M&A and intends to reduce CoreWeave’s footprint to <50% of capacity by 2028 through customer diversification.
How Do Estimates Compare for APLD & CORZ?
The Zacks Consensus Estimate for APLD’s fiscal 2025 sales and EPS implies a year-over-year improvement of 52.8% and 26.7%, respectively. EPS estimates for 2025 and 2026 have remained stable over the past 60 days.
APLD Estimate Movement
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The Zacks Consensus Estimate for Core Scientific’s 2025 sales and EPS implies a year-over-year decline of 18.5% and an improvement of 132.8%, respectively. However, EPS estimates for 2025 and 2026 have been trending northward over the past 30 days.
CORZ Estimate Movement
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APLD & CORZ: Price Performance & Valuation
In the past month, shares of both Applied Digital and Core Scientific have been impressive, with APLD outperforming CORZ. The rise in the share price of both companies is likely due to the increasing demand for AI services as well as certain restrictions on Chinese competition. Shares of APLD and CORZ have surged 63.1% and 49.5%, respectively.
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APLD or CORZ: Which is a Better Pick?
Both Applied Digital and Core Scientific have a Zacks Rank #3 (Hold) at present, which makes it difficult to choose one of them. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Style Score can help investors make a prudent choice, although they have the same Zacks Rank. APLD's style score of ‘D’ indicates a strong growth prospect, although it has an expensive valuation. However, CORZ's style score of ‘F’ reflects its expensive valuation and low growth potential going forward.
As discussed above, CORZ is ahead in AI strategy execution and customer partnerships, while APLD has more aggressive forward-looking infrastructure plans but faces strategic uncertainty due to its pending Cloud divestiture and unleased capacity. CORZ has a more integrated and capital-light AI strategy, supported by long-term contracts with CoreWeave. APLD’s intent to exit Cloud Services weakens its position in AI infrastructure.
Both have ambitious buildout plans, but CORZ is already delivering capacity and is better diversified geographically and financially. APLD’s future depends heavily on securing leases at Ellendale. However, APLD shows stronger revenue growth momentum and EBITDA improvement. With current fundamentals, Applied Digital has better odds of generating wealth for investors compared to Core Scientific.
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