Better to own stock in 2026?

Better to own stock in 2026?

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  • CoreWeave and Applied Digital both had strong performances in 2025.

  • Demand for CoreWeave’s cloud AI services is skyrocketing.

  • Meanwhile, Applied Digital provides specialized buildings and power access for neocloud providers.

  • 10 Stocks We Like More 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 gainers this year. The two companies also have close ties, as CoreWeave is a big customer of Applied Digital.

Let’s examine which stocks could be set to outperform in 2026.

Image source: Getty Images.

CoreWeave is a state-of-the-art neocloud company. Neocloud operators differ from traditional cloud computing companies in that they specialize in training large language model (LLM) and running AI inference. CoreWeave has a close relationship with Nvidia which gives it access to the latest high-end graphics processing units (GPUs). Its core business is essentially renting GPUs as a service, but it also offers storage, high-speed networking and managed services.

Currently, demand for cloud computing for AI services is skyrocketing, and CoreWeave is spending aggressively to try to keep up with demand. It plans to more than double its capital expenditure (capex) next year. The company currently uses an 80/20 joint venture model to grow quickly while keeping control of its expenses. However, demand is so high that the company has had to divest businesses, including between $40 and $50 billion. Microsoft.

As long as CoreWeave’s data center projects remain on schedule, the company should see hypergrowth in 2026. City Group recently said that its checks indicate that the company’s capacity is already sold out for 2026 and that it is already in talks with customers to book in early 2027.

While the stock has performed strongly since its initial public offering (IPO) earlier this year, it is still more than 50% off its spring high. That suggests the stock has plenty of opportunity to run.

While CoreWeave operates state-of-the-art data centers, Applied Digital helps build and manage them. In essence, it is the builder and owner. In particular, these are specialized buildings designed to handle the intense heat and power requirements of AI data centers.

Applied Digital not only builds the physical case, but also designs the cooling systems and provides power. One of the biggest bottlenecks in building AI infrastructure is lack of power; however, that’s where Applied Digital shines. The company was previously a Bitcoin miner, so it already had campuses with access to cheap and stable energy. Meanwhile, he said companies with access to energy but without his high-quality expertise in building data centers are increasingly turning to him to team up.

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