The AI infrastructure boom is projected to reach $7 trillion by 2030, with Applied Digital (NASDAQ: APLD) poised to benefit. However, the company’s debt has skyrocketed to $2.6 billion, leading to concerns about its financial stability. The majority of future revenue for Applied Digital hinges on a single company, increasing risk.

Applied Digital is banking on $16 billion in future lease revenue, primarily from two companies, with $11 billion from CoreWeave. If CoreWeave fails to meet its obligations, it could have dire consequences for Applied Digital. Delays in construction timelines could also jeopardize the company’s success.

Investing in Applied Digital comes with significant risk due to the high levels of debt incurred and potential challenges with construction timelines. Before buying stock in Applied Digital, investors should be aware of these risks and consider alternative investment opportunities. The Motley Fool Stock Advisor team has identified the top 10 stocks for investors to buy now, none of which include Applied Digital. Past recommendations have yielded substantial returns for investors.

Read more at Yahoo Finance: Should You Buy Applied Digital Stock Right Now?