Applied Digital (APLD) and Microsoft (MSFT) are set to benefit significantly from the growing demand for AI hosting infrastructure, with U.S. hyperscalers reportedly committing nearly $700 billion annually to this sector. APLD is focused on expanding its high-performance computing capabilities, securing $16 billion in contracted lease revenues over 15 to 30 years, while Microsoft aims to double its Azure data center footprint and has earmarked $190 billion for infrastructure investments through 2026.
As of the latest reports, APLD’s projected EPS for fiscal 2027 is $5.85, a 17.71% increase year-over-year, whereas MSFT anticipates an EPS of $17.33 for 2026, marking a 27.05% rise. Year-to-date, APLD shares have surged 49.4%, contrasting with a 13.8% decline for MSFT. APLD currently trades at a forward sales multiple of 13.56x, while MSFT is at 8.26x.
While both firms are well-positioned for growth, Microsoft’s extensive infrastructure scale and operational execution make it a more attractive investment at this stage, despite APLD’s current valuation premium.
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