Better Data Center Stock: Applied Digital vs. Riot Platforms
The Motley Fool
by newsfeedback@fool.com (Dave Kovaleski)February 21, 2026
AI-Generated Deep Dive Summary
The demand for artificial intelligence (AI) compute has surged, driving the rapid expansion of high-performance data centers capable of processing vast amounts of data at unprecedented speeds. Two key players in this space, Applied Digital (NASDAQ: APLD) and Riot Platforms (NASDAQ: RIOT), have transitioned from focusing on Bitcoin and cryptocurrency mining to developing AI-specific data centers. While both companies are making strides in this lucrative field, their approaches and current performance differ significantly.
Applied Digital has emerged as a leader in the pivot to AI data centers, with its stock price soaring by an impressive 260% over the past year. This growth reflects the company's strategic focus on leveraging its expertise in high-performance computing for AI applications. On the other hand, Riot Platforms continues to generate a substantial portion of its revenue from Bitcoin mining, which has left it more exposed to the volatility and decline in cryptocurrency prices. Despite this, Riot is aggressively expanding its data center development efforts, betting on the long-term growth potential of the AI sector.
The shift to AI data centers represents a critical inflection point for both companies. Applied Digital's stock performance underscores investor confidence in its ability to capitalize on the growing demand for AI infrastructure. Meanwhile, Riot's strategy involves leveraging its existing mining operations while scaling up its focus on AI data center development. This strategic pivot highlights the broader industry trend of repurposing mining facilities for AI applications, driven by the exponential growth in AI compute requirements.
For investors, this dynamic sector presents a compelling opportunity to align with the tech industry's migration toward AI-driven solutions. As companies like Applied Digital and Riot Platforms continue to evolve, their ability to adapt and scale will be crucial in determining long-term success. The data center landscape is poised for sustained growth, making it a key area of focus for those seeking high-growth opportunities in the tech and finance sectors.
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Originally published on The Motley Fool on 2/21/2026