Applied Digital (APLD) and Western Digital (WDC) are emerging as compelling growth stocks for investors looking to capitalize on the booming demand for artificial intelligence (AI) infrastructure and storage solutions. Applied Digital, which specializes in building AI data centers, reported a staggering 139% year-over-year revenue increase in its latest quarter, driven by a $16 billion lease revenue pipeline. Analysts are bullish, with a median price target suggesting a 37% upside from current levels, indicating strong potential for long-term gains.

Meanwhile, Western Digital has seen its stock surge 123% in 2026, fueled by a critical shortage of hard-disk drives (HDDs) needed for AI data centers. With demand expected to triple by 2029, Western Digital’s earnings per share could jump significantly, positioning the stock for a potential 57% increase based on future earnings multiples.

For market professionals, both stocks represent strategic opportunities in the tech sector, driven by robust demand trends that are likely to sustain their growth trajectories in the coming years.

Source: fool.com