APLD vs. CORZ: Which AI Data Center Stock Is the Better Buy?

Core Viewpoint - Applied Digital (APLD) and Core Scientific (CORZ) are positioned as key players in the AI infrastructure sector, responding to the increasing demand for high-performance data centers [1] - Both companies have formed significant partnerships, with APLD collaborating with Nvidia and Macquarie, while CORZ partners with CoreWeave [1] Financial Comparison - APLD reported Q3 fiscal 2025 revenues of $52.9 million, a 22% year-over-year increase, but missed estimates by $9.99 million; loss per share was 16 cents, lagging estimates by 45.5% [2] - CORZ posted Q1 2025 revenues of $79.5 million, down 55.7% year-over-year, with a loss per share of 10 cents, beating expectations by 16.7% [3] Strength of AI Strategy - APLD's AI strategy focuses on its Cloud Services segment and the Ellendale campus, which is under construction; however, it plans to divest its Cloud business due to conflicts with its data center leasing model [4] - CORZ has integrated AI infrastructure into its operations, with a partnership with CoreWeave that includes a take-or-pay structure for up to 590MW of AI capacity by 2027 [5] Growth Prospects - APLD's growth is tied to its 400MW+ Ellendale development, with 100MW expected online by Q4 2025 and a 1.4GW pipeline supported by Macquarie and SMBC [8] - CORZ aims to deliver 250MW to CoreWeave by the end of 2025 and expand 300MW at existing sites, with plans for an additional 400MW in new locations [8] Estimates Comparison - The Zacks Consensus Estimate for APLD's fiscal 2025 sales implies a 52.8% year-over-year improvement, while EPS estimates have remained stable [9] - For CORZ, the 2025 sales estimate implies an 18.5% decline, but EPS estimates have been trending upward [11] Price Performance & Valuation - In the past month, APLD shares surged by 63.1%, outperforming CORZ, which rose by 49.5%, driven by increased demand for AI services [15] Investment Considerations - Both APLD and CORZ currently hold a Zacks Rank 3 (Hold), complicating the investment decision [17] - APLD has a style score of 'D' indicating strong growth prospects but an expensive valuation, while CORZ's style score of 'F' reflects its expensive valuation and low growth potential [18] - CORZ is ahead in AI strategy execution and customer partnerships, while APLD faces strategic uncertainty due to its Cloud divestiture [19] - APLD shows stronger revenue growth momentum and EBITDA improvement, suggesting better potential for wealth generation for investors compared to CORZ [20]