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TTMI vs. APLD: Which AI-Infrastructure Stock Has More Upside Potential?
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Key Takeaways
TTMI's Data Center & Networking sales rose 91% year over year and reached 40% of second-quarter sales.
TTMI expects about $600 million of N M revenues in the second half of 2026 as volume production ramps.
APLD had 1.41 GW of contracted IT load and about $36B of base-term contracted revenues as of May 31, 2026.
TTM Technologies (TTMI - Free Report) and Applied Digital (APLD - Free Report) offer investors two distinct ways to participate in the rapidly expanding AI infrastructure market. TTM Technologies manufactures advanced printed circuit boards, substrates and other electronic solutions that support data-center and networking applications. Applied Digital, meanwhile, develops and operates large-scale data centers designed for high-performance computing and AI workloads.
The stocks are worth comparing because both are positioned to benefit from the rapid expansion of AI infrastructure and data centers. TTMI provides exposure through essential hardware and connectivity solutions, while APLD participates through AI-focused data-center capacity and high-performance computing workloads.
The broader opportunity is significant. Per the report by Mordor Intelligence, the global AI infrastructure market is projected to grow at a 14.89% CAGR from 2026 through 2031. Both companies are expanding their exposure to this secular growth trend. Let’s examine their fundamentals, growth prospects, financial profiles and valuation to determine which stock appears better positioned to capitalize on the AI infrastructure boom.
The Case for TTMI Stock
TTM Technologies is benefiting directly from the rapid buildout of AI data centers, with its advanced PCBs, substrates and interconnect technologies becoming increasingly important to high-performance computing infrastructure. Its Data Center & Networking business accounted for 40% of second quarter 2026 sales and grew 91% year over year, driven by customers expanding AI data centers. Management expects this end market to more than double in 2026, with its share of sales projected to reach 49% in the third quarter.
A major opportunity is N+M asymmetric PCB technology, which is entering volume production. TTMI had already delivered tens of millions of dollars of N+M products, with yields exceeding expectations, and expects approximately $600 million of N+M revenues in the second half of 2026. Management views N+M as a family of technologies that can serve multiple customers and applications, creating additional growth opportunities beyond data centers. Customer momentum is another strength. TTMI's Phase 1 N+M factory expansion was completed on schedule to support key customer NPI programs and the third-quarter mass-production ramp.
Financially, the company’s second-quarter revenues rose 37% to $1 billion, while adjusted EBITDA increased to $166.8 million, non-GAAP EPS reached a record $0.99, and book-to-bill was 1.49. TTMI raised its 2026 revenue outlook to approximately $4.4 billion and expects 15%-20% organic revenue growth in 2027 and 2028.
Acquisitions could broaden its technology footprint: STG and ILFA add European PCB capabilities, while the planned $1.1-billion Epiq acquisition adds AI-enabled software-defined radios and space-compute technologies.
The Case for APLD Stock
Applied Digital is rapidly expanding its AI-focused data-center footprint, but the strategy remains highly capital-intensive and financially costly. The company generated a $250.3 million net loss attributable to common stockholders in fiscal 2026. Cash used in investing activities surged to $2.9 billion, reflecting heavy data-center construction spending, while the company carried substantial debt obligations.
The business also faces construction delays, financing constraints, power availability, regulatory uncertainty and significant customer concentration. In fiscal 2026, one HPC customer represented 59% of continuing-operations revenues, while the HPC segment had only three customers. This creates meaningful dependence on a small customer base, making lease commencement, expansion and retention particularly important to future results. Intense competition exists among established operators like Digital Realty and Equinix, hyperscalers building their own facilities, private developers and competitors ranging from crypto to HPC sectors. Construction delays, permitting issues, labor and equipment availability, power outages, rising costs and technological changes can also pressure profitability.
A rapidly expanding contracted portfolio partly offsets customer concentration. As of May 31, 2026, APLD had 1.41 GW of contracted critical IT load across five AI campuses, representing about $36 billion of base-term contracted revenues. Its customers comprise CoreWeave and two U.S.-based investment-grade hyperscalers, with long-term take-or-pay leases providing revenue visibility.
Growth opportunities remain substantial. APLD is marketing another 1.7 GW of capacity and pursuing 1.2 GW of natural-gas generation, while expansion options totaling 250 MW could add more than $6 billion of contracted revenues. Its partnership with Macquarie could provide up to $5 billion of capital and potentially support more than 2 GW of AI data-center development.
Earnings Estimates Comparison for TTMI and APLD
The Zacks Consensus Estimate for TTMI’s 2026 EPS is pegged at $4.82 per share, unchanged over the past 30 days. The estimate implies a 95.93% year-over-year increase, reflecting expectations of a significant improvement in earnings.
Image Source: Zacks Investment Research
In contrast, APLD’s outlook remains under pressure, with the Zacks Consensus Estimate for its fiscal 2027 loss pegged at $1.09 per share. Although the estimate has remained unchanged over the past 30 days, it represents a wider loss compared to the 91-cent-per-share loss reported in fiscal 2026.
Image Source: Zacks Investment Research
TTMI vs. APLD: Price Performance & Valuation
TTMI outperformed APLD over the past year, surging 117.5% compared with APLD’s 15% increase. TTMI’s stronger stock performance reflects robust AI and defense demand, diversified end markets, improving margins, rising backlog and a strong pipeline of new opportunities. APLD, while benefiting from substantial AI infrastructure demand, remains more exposed to capital-intensive construction, financing needs, customer concentration and execution risks, which can constrain investor confidence in near-term growth.
TTMI vs. APLD: 1-Year Price Return Performance
Image Source: Zacks Investment Research
TTM Technologies appears relatively attractive on valuation, trading at a forward sales multiple of 2.41X, well below Applied Digital’s 7.36X and TTMI’s one-year median of 2.85X, potentially offering investors a more reasonable entry point.
TTMI vs. APLD: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion
TTMI emerges as the stronger pick, backed by accelerating AI data-center demand, the N+M production ramp, expanding margins and solid earnings growth. Its diversified end markets and more attractive valuation further strengthen the case. APLD offers substantial long-term AI infrastructure potential, but heavy capital needs, persistent losses and customer concentration tilt the comparison in TTMI’s favor.
TTMI stock sports a Zacks Rank #1 (Strong Buy) at present, while APLD carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Shutterstock
TTMI vs. APLD: Which AI-Infrastructure Stock Has More Upside Potential?
Key Takeaways
TTM Technologies (TTMI - Free Report) and Applied Digital (APLD - Free Report) offer investors two distinct ways to participate in the rapidly expanding AI infrastructure market. TTM Technologies manufactures advanced printed circuit boards, substrates and other electronic solutions that support data-center and networking applications. Applied Digital, meanwhile, develops and operates large-scale data centers designed for high-performance computing and AI workloads.
The stocks are worth comparing because both are positioned to benefit from the rapid expansion of AI infrastructure and data centers. TTMI provides exposure through essential hardware and connectivity solutions, while APLD participates through AI-focused data-center capacity and high-performance computing workloads.
The broader opportunity is significant. Per the report by Mordor Intelligence, the global AI infrastructure market is projected to grow at a 14.89% CAGR from 2026 through 2031. Both companies are expanding their exposure to this secular growth trend. Let’s examine their fundamentals, growth prospects, financial profiles and valuation to determine which stock appears better positioned to capitalize on the AI infrastructure boom.
The Case for TTMI Stock
TTM Technologies is benefiting directly from the rapid buildout of AI data centers, with its advanced PCBs, substrates and interconnect technologies becoming increasingly important to high-performance computing infrastructure. Its Data Center & Networking business accounted for 40% of second quarter 2026 sales and grew 91% year over year, driven by customers expanding AI data centers. Management expects this end market to more than double in 2026, with its share of sales projected to reach 49% in the third quarter.
A major opportunity is N+M asymmetric PCB technology, which is entering volume production. TTMI had already delivered tens of millions of dollars of N+M products, with yields exceeding expectations, and expects approximately $600 million of N+M revenues in the second half of 2026. Management views N+M as a family of technologies that can serve multiple customers and applications, creating additional growth opportunities beyond data centers. Customer momentum is another strength. TTMI's Phase 1 N+M factory expansion was completed on schedule to support key customer NPI programs and the third-quarter mass-production ramp.
Financially, the company’s second-quarter revenues rose 37% to $1 billion, while adjusted EBITDA increased to $166.8 million, non-GAAP EPS reached a record $0.99, and book-to-bill was 1.49. TTMI raised its 2026 revenue outlook to approximately $4.4 billion and expects 15%-20% organic revenue growth in 2027 and 2028.
Acquisitions could broaden its technology footprint: STG and ILFA add European PCB capabilities, while the planned $1.1-billion Epiq acquisition adds AI-enabled software-defined radios and space-compute technologies.
The Case for APLD Stock
Applied Digital is rapidly expanding its AI-focused data-center footprint, but the strategy remains highly capital-intensive and financially costly. The company generated a $250.3 million net loss attributable to common stockholders in fiscal 2026. Cash used in investing activities surged to $2.9 billion, reflecting heavy data-center construction spending, while the company carried substantial debt obligations.
The business also faces construction delays, financing constraints, power availability, regulatory uncertainty and significant customer concentration. In fiscal 2026, one HPC customer represented 59% of continuing-operations revenues, while the HPC segment had only three customers. This creates meaningful dependence on a small customer base, making lease commencement, expansion and retention particularly important to future results. Intense competition exists among established operators like Digital Realty and Equinix, hyperscalers building their own facilities, private developers and competitors ranging from crypto to HPC sectors. Construction delays, permitting issues, labor and equipment availability, power outages, rising costs and technological changes can also pressure profitability.
A rapidly expanding contracted portfolio partly offsets customer concentration. As of May 31, 2026, APLD had 1.41 GW of contracted critical IT load across five AI campuses, representing about $36 billion of base-term contracted revenues. Its customers comprise CoreWeave and two U.S.-based investment-grade hyperscalers, with long-term take-or-pay leases providing revenue visibility.
Growth opportunities remain substantial. APLD is marketing another 1.7 GW of capacity and pursuing 1.2 GW of natural-gas generation, while expansion options totaling 250 MW could add more than $6 billion of contracted revenues. Its partnership with Macquarie could provide up to $5 billion of capital and potentially support more than 2 GW of AI data-center development.
Earnings Estimates Comparison for TTMI and APLD
The Zacks Consensus Estimate for TTMI’s 2026 EPS is pegged at $4.82 per share, unchanged over the past 30 days. The estimate implies a 95.93% year-over-year increase, reflecting expectations of a significant improvement in earnings.
Image Source: Zacks Investment Research
In contrast, APLD’s outlook remains under pressure, with the Zacks Consensus Estimate for its fiscal 2027 loss pegged at $1.09 per share. Although the estimate has remained unchanged over the past 30 days, it represents a wider loss compared to the 91-cent-per-share loss reported in fiscal 2026.
Image Source: Zacks Investment Research
TTMI vs. APLD: Price Performance & Valuation
TTMI outperformed APLD over the past year, surging 117.5% compared with APLD’s 15% increase. TTMI’s stronger stock performance reflects robust AI and defense demand, diversified end markets, improving margins, rising backlog and a strong pipeline of new opportunities. APLD, while benefiting from substantial AI infrastructure demand, remains more exposed to capital-intensive construction, financing needs, customer concentration and execution risks, which can constrain investor confidence in near-term growth.
TTMI vs. APLD: 1-Year Price Return Performance
Image Source: Zacks Investment Research
TTM Technologies appears relatively attractive on valuation, trading at a forward sales multiple of 2.41X, well below Applied Digital’s 7.36X and TTMI’s one-year median of 2.85X, potentially offering investors a more reasonable entry point.
TTMI vs. APLD: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion
TTMI emerges as the stronger pick, backed by accelerating AI data-center demand, the N+M production ramp, expanding margins and solid earnings growth. Its diversified end markets and more attractive valuation further strengthen the case. APLD offers substantial long-term AI infrastructure potential, but heavy capital needs, persistent losses and customer concentration tilt the comparison in TTMI’s favor.
TTMI stock sports a Zacks Rank #1 (Strong Buy) at present, while APLD carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.