Applied Digital vs. CoreWeave: Better Stock to Own in 2026?

Core Weave - CoreWeave is a next-generation neocloud company specializing in large language model (LLM) training and AI inference, with a close relationship with Nvidia for access to high-end GPUs [3] - The company is aggressively increasing capital expenditures, planning to more than double them next year, to meet soaring demand for AI services [4] - CoreWeave has reportedly turned away business worth an estimated $40 billion to $50 billion from Microsoft due to high demand [4] - Citigroup indicates that CoreWeave's capacity is sold out for 2026, with discussions already underway for early 2027 bookings, suggesting potential hypergrowth [5] - Despite a strong performance post-IPO, CoreWeave's stock is still over 50% below its all-time high, indicating room for growth [5] Applied Digital - Applied Digital builds and manages specialized data centers designed for AI, focusing on handling intense heat and power requirements [6] - The company designs cooling systems and provides power, addressing a significant bottleneck in AI infrastructure development [7] - Applied Digital has transitioned from Bitcoin mining to providing data center expertise, attracting companies that need power access but lack building capabilities [7] - Both Applied Digital and CoreWeave experienced strong performances in 2025, with Applied Digital supporting neocloud providers through specialized infrastructure [8]