Applied Digital vs. IREN: Which AI Data Center Stock Has an Edge?

Applied Digital APLD and IREN Limited IREN offer next-gen data center infrastructure targeting high-performance computing (HPC), artificial intelligence (AI) workloads and scalable computing. Data centers are playing a crucial role in solving enterprise needs for robust, reliable and scalable solutions to process, analyze and store vast amounts of data in real-time, which is necessary for AI. APLD expects the global AI market to reach $500 billion by 2027, driven by increasing adoption across various industries, including healthcare, finance, transportation and manufacturing. These factors bode well for both Applied Digital and IREN Limited.However, APLD or IREN, which has an edge right now?The Case for APLD StockAI needs data centers with high power density, as well as changing power and cooling requirements. Hyperscalers require high-capacity data centers to meet the escalating power needs of AI and GPU-driven applications. These factors bode well for APLD’s future prospects.Applied Digital’s HPC Hosting business specializes in designing, constructing and operating data centers that are well-equipped to support high-power density applications like HPC and AI. APLD’s Polaris Forge 1 is purpose-built for AI and HPC. The facility is designed to scale up to 1 gigawatt (GW). The first 100-MW facility is scheduled to be operational in the fourth quarter of 2025, the second 150-MW facility is set to come online in mid-2026, and the third 150-MW facility is planned for 2027. The Polaris Forge 2, supported by funding from Macquarie Equipment Capital, is expected to come online in late 2026 (first building) and reach full capacity in 2027. APLD’s power offering pipeline is expected to exceed 2 GW.APLD has inked three lease agreements (15-year base term with three five-year options) with CoreWeave CRWV to deliver 400 MW of critical IT load at Polaris Forge 1. Total anticipated contracted lease revenues from the CoreWeave deal are now expected to be roughly $11 billion. The CoreWeave partnership validates Applied Digital's strategic pivot from cryptocurrency mining to AI-optimized data center infrastructure. This partnership provides strong revenue visibility and effectively de-risks Applied Digital's business model.The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $280.9 million, suggesting 30.4% growth from fiscal 2025’s reported figure.The Case for IREN StockIREN is on track to achieve $1.25 billion in annualized revenues, with roughly $200-$250 million from AI Cloud (by December 2025). IREN expects to scale from 1.9k to 10.9k GPUs in the coming months. This includes 1.9k air-cooled H100 and H200s; 7.8k air-cooled B200 and B300s; and 1.2k liquid-cooled GB300s. IREN has been on track to install more than 60k NVIDIA Blackwell GPUs at British Columbia sites and recognizes the potential of 19k GB300s at Horizon 1. IREN continues its transition in British Columbia (160 MW) from bitcoin mining to AI, including a new liquid-cooled data center for GB300 NVL72 installations at Prince George. IREN’s AI cloud business is expanding rapidly, with more than 10,000 GPUs online or set to be commissioned in the coming months. The upcoming GPUs include next-generation liquid-cooled GB300 NVL72 systems from NVIDIA NVDA at the Prince George campus. Meanwhile, IREN has achieved NVIDIA Preferred Partner status. On Oct. 7, IREN inked an additional multi-year cloud services contract with leading AI companies for NVIDIA Blackwell GPU deployments. IREN now expects to achieve $500 million in AI Cloud annualized run-rate revenue (ARR) by the first quarter of fiscal 2026.However, IREN Limited suffers from volatility in bitcoin prices due to the challenging macroeconomic environment. IREN Limited is one of the world’s largest and lowest-cost bitcoin miners, and the company expects $1 billion of revenue from bitcoin mining by December 2025.Earnings Estimate Revisions: IREN’s Fall, APLD’s Loss NarrowsThe Zacks Consensus Estimate for IREN’s fiscal 2026 earnings is pegged at 70 cents per share, down 39.1% over the past 60 days. The company reported earnings of 4 cents per share in fiscal 2025. IREN Limited Price and Consensus IREN Limited price-consensus-chart | IREN Limited Quote The consensus mark for Applied Digital’s fiscal 2026 loss is pegged at 31 cents per share, much narrower than 34 cents over the past 60 days. APLD reported a loss of 80 cents per share in fiscal 2025  Applied Digital Corporation Price and Consensus Applied Digital Corporation price-consensus-chart | Applied Digital Corporation Quote Stock Performance and Valuation: IREN vs. APLDIn the past month, IREN Limited shares have jumped 33%, underperforming Applied Digital, shares of which have surged 49.7%.APLD Outperforms IREN Image Source: Zacks Investment Research IREN and Applied Digital shares are overvalued, as suggested by the Value Score of F.ConclusionAlthough IREN’s accelerating AI Cloud revenues are noteworthy, the company suffers from volatility in bitcoin prices and a modest top-line growth prospect. Meanwhile, Applied Digital is expected to benefit from the CoreWeave deal and the growing demand for AI infrastructure.Applied Digital currently carries a Zacks Rank #3 (Hold), which makes the stock a stronger pick compared with IREN Limited, shares of which currently carry a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Applied Digital Corporation (APLD): Free Stock Analysis Report IREN Limited (IREN): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks