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CoreWeave and Applied Digital both had strong performances in 2025.
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Demand for CoreWeave’s AI cloud services is through the roof.
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Applied Digital, meanwhile, is providing the specialized buildings and access to power for neocloud providers.
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10 stocks we like better than Applied Digital ›
While Applied Digital (NASDAQ: APLD) and CoreWeave (NASDAQ: CRWV) both saw their stocks go on roller-coaster rides in 2025, they were also two of the biggest artificial intelligence (AI) stock winners this year. 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.
CoreWeave is a next-generation 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 to 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 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 it’s already in discussions with customers for booking out early 2027.
While the stock has had a strong run after its initial public offering (IPO) 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.
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.
