Forget Applied Digital: This Under-the-Radar Cash Machine Is a Far Simpler Profit Play

Data centers have become one of the artificial intelligence (AI) revolution's hottest must-have trades, thrusting Applied Digital (NASDAQ: APLD), data center construction company, into the spotlight.This sudden swell of bullish attention doesn't come without its risks, though. Chiefly, the stock's big gains since early last year have made it very expensive. And never mind its lack of profits right now and for the foreseeable future. APLD shares are priced at roughly 30 times this year's projected revenue, versus the S&P 500's (SNPINDEX: ^GSPC) price/sales ratio of only around 3.4. Even if and when Applied Digital starts turning a plausible profit, it's still going to be an incredibly expensive stock.Meanwhile, although Applied Digital may be the biggest and best-known builder in this space, as the AI data center construction industry matures, specialty construction outfits like Jacob and Emcor are penetrating this market. It's not clear if Applied Digital will remain the business's top go-to name.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool