If You Own AES Stock, Take a Look at This Instead

Core Insights - AES Corp. is a U.S. utility company with a focus on residential customers in Ohio and Indiana, planning to expand into energy solutions for data centers with an 11.1-gigawatt pipeline, including 4 gigawatts for hyperscaler customers [1] - Applied Digital is positioned as a more attractive investment in the AI energy sector, with its share price having nearly tripled over the past year compared to AES's 14% increase [2] - The difference in growth trajectories between AES and Applied Digital is attributed to Applied Digital's ownership of both power generation and AI data centers, enhancing its long-term outlook [4] Financial Performance - AES reported a 2% year-over-year revenue growth in Q3 2025, while Applied Digital experienced an 84% year-over-year sales increase during the same period, indicating a stark contrast in growth stages [5] - Applied Digital secured a significant 15-year contract with CoreWeave, projected to generate approximately $11 billion in revenue, showcasing its potential for higher earnings per megawatt compared to AES [6] Market Demand and Future Prospects - Applied Digital is witnessing "active and increasing hyperscaler interest" and "unprecedented levels" of demand for advanced infrastructure, allowing for further investment in data centers [8] - The company is also building its multi-gigawatt pipeline to support multiple lucrative deals, enhancing its competitive position in the market [7] - AES, while having a larger megawatt capacity, lacks the AI data center component that Applied Digital possesses, which is critical for future growth [9]