Applied Digital’s CEO and president combined to buy $6.7 million of shares on Oct. 16, as the stock fell more than 30% over the past month. The company builds AI data centers, and CoreWeave is among its largest customers under 15-year leases worth up to $11 billion in revenue for 400 megawatts, or $1.83 million per megawatt annually. Revenue rose 322% year over year to $341.9 million in its fiscal 2027 first quarter, though the company remains unprofitable as costs climb. The author argues the colocation model and long-term, low-value contracts limit Applied Digital compared with Nebius, which signs short-term deals at $40 million to $50 million per megawatt a year. The author concludes the stock looks oversold, but pure neoclouds are a better way to approach the opportunity.
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