As artificial intelligence and blockchain technology continue to reshape the digital economy, investors are focusing on the infrastructure behind these trends. Applied Digital APLD and Core Scientific Corz are two startups spanning both worlds. We provide data center solutions that power AI workloads while maintaining a strong relationship with CryptoMining, especially Bitcoin.
With demand for high-performance computing and distributed infrastructures surge in, the two companies are fishing for growth in the rapidly evolving market. But which stocks today offer the stronger reverse? This showdown will compare APLD and CORZ between basic, scalability, and exposure to next-generation technology trends, allowing investors to decide which is a better purchase.
Applied Digital is within the strategic pivot from traditional crypto mining to AI cloud services and high performance computing (HPC) hosting. The company is actively expanding its data center capacity, with plans to destroy the first 100MW HPC facility in Ellendale, North Dorse, and add another 300MW online. Despite the theoretical revenue potential that could generate more than $2 billion a year by 400MW of AI infrastructure, the company is on a dangerous path.
APLD’s finances reveal a challenging landscape. Slow cash burning, negative free cash flow margins, high reliance on debt and preferred equity financing have sparked concern among analysts. The company’s current trajectory is positioned as a speculative “lottery” investment. While lowering local power costs in North Dakota can provide a competitive advantage, APLD still needs to secure key leases and acquire key hyperscalar clients. For investors who are highly resistant to risk, the early stage growth of Digital and the potential for massive scaling of HPC hosting can lead to great rewards if they can overcome execution hurdles and carve out a niche in an increasingly busy market.
In the second quarter of fiscal year 2025, APLD reported revenue of $63.9 million (an increase of 51% year-on-year) from hosting and cloud performance. RENEGOTIRED GPU leases eased costs, but the higher costs increased the SG&A to $29.8 million and from D&A to $26.4 million. The net loss reached $138.7 million, with an adjusted net loss of $12.6 million. EBITDA rose 93% to $21.4 million.
APLD is actively engaged in multiple funding initiatives, including the recent $450 million convertible senior note offering and the $150 million senior secure debt facility. It also established a strategic partnership with Macquarie Asset Management for its $5 billion permanent preferred equity lending facility.
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Core Scientific has diversified from legacy Bitcoin mining and has brought about an astonishing shift by focusing on AI infrastructure. The company’s pivot is backed by a groundbreaking long-term agreement with CoreWeave CRWV, surpassing its $10 billion revenue over 12 years. This agreement with CoreWeave offers strong revenue visibility while increasing operational capabilities.
Additional commitments from partner CoreWeave are expected to drive growth that could position Core Scientific as a leader in this space. With a capacity of 1,300 MW and a strategic allocation of 900 MW to HPC hosting, Corz has placed a diverse revenue model that leaps towards stable contractual contracts.
This strategic location minimizes execution risk compared to traditional mining. This is strengthened by high margins of EBITDA and predictable revenue streams inherent to its long-term contracts. Working with industry support, including a $12 billion deal with CoreWeave’s Openai, Core Scientific’s growing roster of HPC trading highlights the robust demand for AI-driven computing power.
Additionally, insider purchases increase market confidence in Corz’s operational strategies. While recent stock price volatility has sparked short-term concerns, the company’s deep transformation into a trusted AI infrastructure provider offers an attractive outlook for long-term growth and profitability.
In the fourth quarter of 2024, Core Scientific reported revenue of $94.9 million (down 33% year-on-year) and a loss of 60 cents. The adjusted EBITDA reached $13.3 million. Digital self-mining revenues fell to $79.9 million, while host mining fell to $6.5 million. HPC Hosting generated $8.5 million. The debt restructuring reduced total debt by $270 million. The Convertible Note Offering has cut its fees and left over $830 million in cash to strengthen its balance sheet towards 2025.
APLD’s 2025 sales and EPS Zacks consensus estimates mean an improvement of 52.8% and 26.7% year-on-year, respectively. EPS estimates for 2025 and 2026 have been stable over the past 60 days.
APLD Estimation Movement
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Core Scientific’s 2025 sales and EPS’ Zacks Consensus estimates mean a 3% decrease and a 98.4% improvement, respectively. EPS estimates for 2025 and 2026 have been heading south over the past 60 days.
Corz Estimation Movement
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The price performance from the beginning of the year, both applied digital and core scientific, was not impressive, perhaps due to tariff concerns and the rise in the Chinese model, where infrastructure requirements are low. APLD and Corz shares lost 27.8% and 46.6%, respectively.
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Both Applied Digital and Core Scientific currently have Zacks rank #3 (pending), making it difficult to choose between them. Here you can see the full list of today’s Zacks #1 rank (strong purchase) stocks.
Zacks style scores help investors choose these companies, but they have the same Zacks rank. APLD’s “F” style score reflects its expensive rating and potential for low growth in the future. However, Corz’s style score of “D” has an expensive rating, but shows strong growth prospects.
As explained above, Corz has strong revenue stream prospects through its deal with CoreWeave, but APLS is looking for a transaction. Additionally, Corz is far ahead in building AI infrastructure, with 900 MW allocated for HPC hosting compared to APLS’s 100 MW capacity. APLD is building capacity and plans to expand to 400 MW, but the Colts are still behind.
Additionally, capacity building requires large investments that could put pressure on APLD margins in the short term. Meanwhile, Corz is improving the gross profits reflected in its estimates. Revenues are expected to double, but sales could fall.
The companies retain strong growth potential over the long term as demand for AI services increases adoption of high-performance computing. This is a market that has witnessed a CAGR of 6.3% over the next seven years, likely to reach nearly $83 billion. However, current fundamentals make Core Scientific more likely to generate wealth for investors compared to Applied Digital.
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This article was originally published on Zacks Investment Research (Zacks.com).
