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APLD vs. VRT: Which Digital Infrastructure Stock Has More Upside Now?
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Key Takeaways
A 15-year, $7B CoreWeave contract anchors APLD's expansion with 250MW capacity at its North Dakota site.
VRT's buyout of Great Lakes and partnerships with CoreWeave and Oklo enhance its AI data center offerings.
Global data center capex is projected to witness a 21% CAGR through 2029, benefiting both APLD and VRT.
Applied Digital (APLD - Free Report) and Vertiv Holdings (VRT - Free Report) operate at the core of the digital infrastructure build-out, serving the surging demand for data center capacity fueled by AI, cloud computing and high-performance computing (HPC) workloads. APLD designs and operates HPC and AI-optimized data centers in North America, catering to workloads that demand GPU-dense infrastructure. VRT provides the critical physical backbone of power, cooling and rack solutions that enable data centers worldwide to run efficiently and reliably.
Their complementary roles position both to benefit from a robust industry growth cycle. According to Dell’Oro Group, global data-center capital expenditures are expected to witness a 21% CAGR through 2029, reaching approximately $1.2 trillion. This surge is driven by accelerating AI adoption, GPU deployment and hyperscale expansion, setting the stage for both service-oriented operators like Applied Digital and equipment suppliers like Vertiv to capture a larger share of investment flows.
So, APLD or VRT, which of these Data Center Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for APLD
Applied Digital has transitioned from its origins in cryptocurrency mining to become a pure-play AI infrastructure provider, capitalizing on the rapid growth of AI and machine learning workloads.
In fourth-quarter fiscal 2025, Applied Digital reported revenues of $38 million, up 41% year over year, and achieved positive adjusted EBITDA of $1 million. The balance sheet was strengthened by approximately $270 million raised through recent capital offerings, providing flexibility to fund its aggressive expansion strategy.
APLD’s key growth driver is its partnership with CoreWeave, which is expected to generate roughly $7 billion in contracted revenue over 15 years for 250 megawatts of critical IT load at the Polaris Forge 1 campus in North Dakota. APLD has streamlined construction processes by reducing stock-keeping units by 50% and consolidating suppliers, cutting deployment timelines to 12-14 months from the prior 24-month standard.
Applied Digital's strategic advantages stem from its North Dakota locations, offering abundant low-cost energy with over 200 days of free natural cooling annually. The company's innovative closed-loop direct-to-chip liquid cooling systems achieve a projected power usage effectiveness of 1.18 with near-zero water consumption, creating compelling cost propositions for hyperscale customers. These operational efficiencies position Applied Digital to capture significant market share as AI infrastructure demand accelerates, particularly given its established relationships with multiple investment-grade hyperscalers and a robust pipeline of multi-gigawatt development opportunities across strategic locations.
The Case for VRT
Vertiv Holdings is a leading provider of thermal and power management solutions for high-density data centers. The increasing complexity of AI hardware and the expansion of edge computing are driving greater demand for advanced cooling and power infrastructure. Vertiv’s broad product portfolio, which includes thermal systems, liquid cooling, uninterruptible power supplies, switchgear, busbar and modular solutions, positions it to address a wide range of critical infrastructure requirements.
In the second quarter of 2025, net sales rose 35% year over year and 34% organically to $2.64 billion, reflecting strong execution and sustained market momentum. Organic orders on a trailing twelve-month basis were up approximately 11% from the prior year period, while quarterly orders surpassed $3 billion for the first time. A book-to-bill ratio of 1.2x and a backlog of $8.5 billion, up 21% year over year, provide solid visibility into future revenue. As hyperscalers and enterprises expand AI deployments, Vertiv’s integrated solutions are seeing growing adoption across global markets.
The outlook is supported by significant capital expenditure commitments from hyperscalers to expand data center capacity. Strategic partnerships with technology leaders, including CoreWeave for NVIDIA GB300 NVL72 deployments and Oklo for advanced nuclear power integration, further strengthen Vertiv’s position in next-generation AI infrastructure. The $200 million acquisition of Great Lakes expands VRT’s white space capabilities, while its expertise in integrating both gray and white space infrastructure addresses the rising complexity of AI data center design. Vertiv’s goal of staying one GPU generation ahead in power system capabilities underscores its focus on delivering efficient and scalable solutions while leveraging its global manufacturing network to meet accelerating demand.
Price Performance and Valuation of APLD and VRT
In the year-to-date period, Applied Digital’s shares have rallied 95.9%, whereas Vertiv’s shares have appreciated 26.5%.
APLD and VRT Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, Applied Digital and Vertiv Holdings shares are currently overvalued as suggested by a Value Score of F.
In terms of the forward 12-month Price/Sales, Applied Digital shares are trading at 12.98X, higher than Vertiv Holdings’ 5.07X.
APLD and VRT Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for APLD & VRT?
The Zacks Consensus Estimate for Applied Digital’s first quarter fiscal 2026 loss is pegged at 6 cents per share, which has improved by 33.33% over the past 30 days, indicating a decline from the year-ago quarter’s loss of 3 cents per share.
The Zacks Consensus Estimate for Vertiv Holding’s third-quarter 2025 earnings is pegged at 98 cents per share, which has increased by 3 cents over the past 30 days, indicating a 28.95% increase year over year.
While both Applied Digital and Vertiv are well-positioned to benefit from the AI-driven expansion in data center infrastructure and have seen upward revisions to earnings estimates, Applied Digital’s growth path appears more accelerated.
Vertiv remains a strong player with a broad product portfolio, record order intake, and deep industry partnerships, providing steady growth visibility. However, its expansion curve is less aggressive compared to APLD’s pipeline of large-scale AI-optimized projects.
Image: Bigstock
APLD vs. VRT: Which Digital Infrastructure Stock Has More Upside Now?
Key Takeaways
Applied Digital (APLD - Free Report) and Vertiv Holdings (VRT - Free Report) operate at the core of the digital infrastructure build-out, serving the surging demand for data center capacity fueled by AI, cloud computing and high-performance computing (HPC) workloads. APLD designs and operates HPC and AI-optimized data centers in North America, catering to workloads that demand GPU-dense infrastructure. VRT provides the critical physical backbone of power, cooling and rack solutions that enable data centers worldwide to run efficiently and reliably.
Their complementary roles position both to benefit from a robust industry growth cycle. According to Dell’Oro Group, global data-center capital expenditures are expected to witness a 21% CAGR through 2029, reaching approximately $1.2 trillion. This surge is driven by accelerating AI adoption, GPU deployment and hyperscale expansion, setting the stage for both service-oriented operators like Applied Digital and equipment suppliers like Vertiv to capture a larger share of investment flows.
So, APLD or VRT, which of these Data Center Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for APLD
Applied Digital has transitioned from its origins in cryptocurrency mining to become a pure-play AI infrastructure provider, capitalizing on the rapid growth of AI and machine learning workloads.
In fourth-quarter fiscal 2025, Applied Digital reported revenues of $38 million, up 41% year over year, and achieved positive adjusted EBITDA of $1 million. The balance sheet was strengthened by approximately $270 million raised through recent capital offerings, providing flexibility to fund its aggressive expansion strategy.
APLD’s key growth driver is its partnership with CoreWeave, which is expected to generate roughly $7 billion in contracted revenue over 15 years for 250 megawatts of critical IT load at the Polaris Forge 1 campus in North Dakota. APLD has streamlined construction processes by reducing stock-keeping units by 50% and consolidating suppliers, cutting deployment timelines to 12-14 months from the prior 24-month standard.
Applied Digital's strategic advantages stem from its North Dakota locations, offering abundant low-cost energy with over 200 days of free natural cooling annually. The company's innovative closed-loop direct-to-chip liquid cooling systems achieve a projected power usage effectiveness of 1.18 with near-zero water consumption, creating compelling cost propositions for hyperscale customers. These operational efficiencies position Applied Digital to capture significant market share as AI infrastructure demand accelerates, particularly given its established relationships with multiple investment-grade hyperscalers and a robust pipeline of multi-gigawatt development opportunities across strategic locations.
The Case for VRT
Vertiv Holdings is a leading provider of thermal and power management solutions for high-density data centers. The increasing complexity of AI hardware and the expansion of edge computing are driving greater demand for advanced cooling and power infrastructure. Vertiv’s broad product portfolio, which includes thermal systems, liquid cooling, uninterruptible power supplies, switchgear, busbar and modular solutions, positions it to address a wide range of critical infrastructure requirements.
In the second quarter of 2025, net sales rose 35% year over year and 34% organically to $2.64 billion, reflecting strong execution and sustained market momentum. Organic orders on a trailing twelve-month basis were up approximately 11% from the prior year period, while quarterly orders surpassed $3 billion for the first time. A book-to-bill ratio of 1.2x and a backlog of $8.5 billion, up 21% year over year, provide solid visibility into future revenue. As hyperscalers and enterprises expand AI deployments, Vertiv’s integrated solutions are seeing growing adoption across global markets.
The outlook is supported by significant capital expenditure commitments from hyperscalers to expand data center capacity. Strategic partnerships with technology leaders, including CoreWeave for NVIDIA GB300 NVL72 deployments and Oklo for advanced nuclear power integration, further strengthen Vertiv’s position in next-generation AI infrastructure. The $200 million acquisition of Great Lakes expands VRT’s white space capabilities, while its expertise in integrating both gray and white space infrastructure addresses the rising complexity of AI data center design. Vertiv’s goal of staying one GPU generation ahead in power system capabilities underscores its focus on delivering efficient and scalable solutions while leveraging its global manufacturing network to meet accelerating demand.
Price Performance and Valuation of APLD and VRT
In the year-to-date period, Applied Digital’s shares have rallied 95.9%, whereas Vertiv’s shares have appreciated 26.5%.
APLD and VRT Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, Applied Digital and Vertiv Holdings shares are currently overvalued as suggested by a Value Score of F.
In terms of the forward 12-month Price/Sales, Applied Digital shares are trading at 12.98X, higher than Vertiv Holdings’ 5.07X.
APLD and VRT Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for APLD & VRT?
The Zacks Consensus Estimate for Applied Digital’s first quarter fiscal 2026 loss is pegged at 6 cents per share, which has improved by 33.33% over the past 30 days, indicating a decline from the year-ago quarter’s loss of 3 cents per share.
Applied Digital Corporation Price and Consensus
Applied Digital Corporation price-consensus-chart | Applied Digital Corporation Quote
The Zacks Consensus Estimate for Vertiv Holding’s third-quarter 2025 earnings is pegged at 98 cents per share, which has increased by 3 cents over the past 30 days, indicating a 28.95% increase year over year.
Vertiv Holdings Co. Price and Consensus
Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote
Conclusion
While both Applied Digital and Vertiv are well-positioned to benefit from the AI-driven expansion in data center infrastructure and have seen upward revisions to earnings estimates, Applied Digital’s growth path appears more accelerated.
Vertiv remains a strong player with a broad product portfolio, record order intake, and deep industry partnerships, providing steady growth visibility. However, its expansion curve is less aggressive compared to APLD’s pipeline of large-scale AI-optimized projects.
Currently, Applied Digital has a Zacks Rank #1 (Strong Buy), making the stock a stronger pick compared to Vertiv Holdings, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.