The AI boom is evolving as hyperscalers and cloud providers invest in AI-optimized data centers. Applied Digital (NASDAQ: APLD) stands out with contracts for nearly 600 megawatts of capacity, generating $16 billion in prospective lease revenue over 15 years. Revenue surged 250% in Q2 2026 to $126.6 million. Expansion plans show confidence in continued demand.

The company has designed Polaris Forge 1 and Polaris Forge 2 campuses for significant expansion, with each site capable of scaling to at least 1 gigawatt of total capacity. Applied Digital’s recent financials are impressive, with revenue expected to reach $346.7 million in fiscal 2026 and roughly $546 million in fiscal 2027. This makes Applied Digital a smart buy now.

Before investing in Applied Digital, note that the Motley Fool Stock Advisor team did not include it in their list of the 10 best stocks to buy now. The top 10 stocks identified by the team historically delivered massive returns, such as investing $1,000 in Netflix in 2004 yielding $464,439 or in Nvidia in 2005 yielding $1,150,455. Stock Advisor has a total average return of 949%, outperforming the S&P 500 by 754%.

Read more at Yahoo Finance: This Overlooked AI Infrastructure Stock Could Transform $1,000 Into Life-Changing Wealth