While Applied Digital (APLD +16.44%) and CoreWeave (CRWV +22.55%) both saw their stocks go on rollercoaster rides in 2025, they were also two of the biggest artificial intelligence (AI) stock winners. The two companies also have close ties, as CoreWeave is a big customer of Applied Digital.
Let's examine which stock could be set to outperform in 2026.
The case for CoreWeave
NASDAQ: CRWV
Key Data Points
CoreWeave is a next-generation cloud computing, or neocloud, company. Neocloud operators differ from traditional cloud computing companies in that they are specialized to handle large language model (LLM) training and running AI inference. CoreWeave has a close relationship with Nvidia that gives it access to its newest high-end graphics processing units (GPUs). Its main business is essentially renting out GPUs as a service, but it also provides storage, high-speed networking, and managed services.
Currently, cloud computing demand for AI services is through the roof, and CoreWeave is spending aggressively to try and keep up with demand. It plans to more than double its capital expenditures (capex) next year. The company is currently using an 80/20 joint venture model to help grow rapidly while having control over its spending. However, demand is so high that the company has reportedly had to turn away business, including an estimated $40 billion to $50 billion from Microsoft.
As long as CoreWeave's data center projects remain on schedule, the company should see hypergrowth in 2026. Citigroup has recently said its checks indicate that the company's capacity is already sold out for 2026, and its already in discussions with customers for booking out early 2027.
While the stock has had a strong run after IPOing earlier this year, it is still more than 50% off its all-time high hit in the spring. That suggests the stock has plenty of opportunity to run.
The case for Applied Digital
NASDAQ: APLD
Key Data Points
While CoreWeave operates next-generation data centers, Applied Digital helps build and manage them. It's essentially the builder and landlord. Notably, these are specialized buildings designed to handle the intense heat and power requirements of AI data centers.
Applied Digital not only handles building the physical shell, but it also designs the cooling systems and provides the power. One of the biggest bottlenecks with building out AI infrastructure is the lack of power; however, that is where Applied Digital shines. The company was previously a Bitcoin miner, so it already had campuses with access to cheap, stable power. Meanwhile, it has said that companies with access to power but without its high-end data center building expertise are increasingly turning to it to team up.
The company's primary business is colocation, where companies like CoreWeave lease out space and gain access to power at its facilities using their own hardware. In fact, it has an $11 billion contract with CoreWeave for such services. However, it will also rent out GPUs to companies that prefer not to own their own servers.
Applied Digital has close ties to Macquarie, which is helping fund its campus expansion. The company completed phase 1 of the first building at its Polaris Forge 1 campus in North Dakota in late October and its second phase in November, giving CoreWeave access to the first 100 megawatts of power of its 400 megawatt deployment. It also recently signed a $5 billion lease with a customer for its future Polaris 2 campus.
Image source: Getty Images
The verdict
Both CoreWeave and Applied Digital are set to see hypergrowth in 2026 and beyond. Meanwhile, the two companies are pretty intertwined at the moment. That makes it a tough call as to which will outperform next year, but I give the edge to Applied Digital, as access to cheap power is such a valuable resource in today's environment.
