Applied Digital vs. TeraWulf: Which AI Data Center Stock Is the Better Buy?

Applied Digital (NASDAQ: APLD) and TeraWulf (NASDAQ: WULF) are both positioning themselves to serve hyperscalers through AI-focused data centers, but their shares have diverged this year. TeraWulf is up 36%, while Applied Digital has gained 11%. The article argues the gap may reflect each company’s contracted power and development pipeline. Applied Digital has 1.4 gigawatts of contracted critical IT load, tied to about $36 billion in total contracted lease revenue, with many 15-year terms. TeraWulf has 839 megawatts leased, mostly from a 20-year Anthropic deal worth $19 billion. Revenue is expected to begin in 2H 2027 and broadly by early 2028, respectively.