Investment in artificial intelligence (AI) infrastructure is gaining traction, with companies like CoreWeave (CRWV), Nebius (NBIS), and Applied Digital (APLD) showcasing remarkable growth. CoreWeave and Nebius, both classified as neocloud companies, are focused on providing AI computing power. Nebius reported a staggering 547% year-over-year growth in Q4, with revenue expectations soaring from $1.25 billion to as much as $9 billion by the end of 2026. CoreWeave, while not growing as rapidly, still posted a 110% revenue increase to $1.6 billion in Q4 and anticipates recognizing $28 billion in revenue over the next two years.

Applied Digital operates differently, acting as a landlord for data centers rather than managing them directly. The company reported a 139% revenue increase to $127 million in Q3 and is projected to grow by 94% this year. With multiyear contracts in place and new facilities coming online, Applied Digital’s growth trajectory appears robust.

For market professionals, these companies represent compelling opportunities in the AI sector, driven by unprecedented demand for computing resources and data center space.

Source: fool.com