Can Applied Digital Turn You Into a Millionaire? Here's What the Numbers Say

The rise of artificial intelligence has sparked a wealth of investment opportunities, but one question looms large: can you actually become a millionaire by betting on an AI infrastructure play like Applied Digital (NASDAQ: APLD)? The short answer involves looking at the company’s explosive growth trajectory—and understanding why that trajectory might already be priced into its valuation.

The AI Data Center Gold Rush and Applied Digital’s Growth Potential

Applied Digital wasn’t always focused on AI. The company started in cryptocurrency, building mining data centers. But when hundreds of billions of dollars began flowing into AI infrastructure over recent years—and it became crystal clear that traditional data centers couldn’t handle the computational demands of modern AI systems—the company pivoted to where the real money was heading.

According to research from McKinsey & Company, total data center spending could reach $7 trillion by 2030, with AI capturing the lion’s share of those investments. For Applied Digital, this means building specialized campuses engineered to deliver the raw computing horsepower that AI companies desperately need.

The company is now constructing multiple AI data center facilities designed to come online through 2027. These aren’t small operations—Polaris Forge 1 and Polaris Forge 2 will deliver 450 megawatts and 300 megawatts of capacity respectively. Meanwhile, Delta Forge 1, set to launch by mid-2027, will add another 430 megawatts to the mix. All told, Applied Digital is betting that demand for AI infrastructure will keep rising—and the numbers suggest that’s a reasonable bet.

$16 Billion in Locked-In Contracts: Revenue Explosion Ahead

Here’s where the story gets interesting. Applied Digital has already secured major lease agreements that lock in future revenue streams. The company inked a $11 billion deal with CoreWeave spanning 15 years. It also signed approximately $5 billion in commitments with another major AI firm (name not yet disclosed).

That’s $16 billion in predictable revenue over the next decade and a half—which translates to massive growth on the horizon. Wall Street analysts project Applied Digital will generate roughly $346 million in revenue during fiscal 2026 and $535 million in fiscal 2027. For a company that was much smaller just a few years ago, that kind of expansion is the stuff wealth-building dreams are made of.

Why the 700% Rally Means Millionaire Dreams Are Harder to Achieve Now

Here’s the problem: the millionaire-making opportunity window may have already closed for new investors.

Applied Digital’s share price has surged 700% over the past 18 months—a jaw-dropping run that’s pushed the company’s market capitalization to $9.5 billion. Investors who got in early on this story have already made tremendous returns. But for someone buying today, the math becomes less attractive.

The stock now trades at 17 to 18 times its projected fiscal 2027 revenue. For a company still burning through substantial cash to fund its data center construction boom, that’s a steep valuation. When you’re relying on just a handful of massive contracts to drive growth, and the entire thesis depends on AI investments remaining red-hot for the next decade, paying a premium becomes risky.

The Real Risk That Could Derail Applied Digital’s Wealth-Creation Story

Consider the structural vulnerabilities. Applied Digital’s revenue stream is concentrated among a few major customers. If AI investment sentiment shifts—or if demand for computing capacity softens for any reason—the company faces a credibility crisis. Add in the fact that the company is consuming enormous amounts of cash to build out these data centers before revenues fully materialize, and you’ve got a situation where early believers have already captured the upside.

Those who invested 18 months ago? They’ve already ridden the gravy train to substantial gains. That momentum-driven window of opportunity has largely passed.

Making Money vs. Making Millions: A Smarter Investment Path

The Motley Fool’s Stock Advisor team recently released their list of the 10 best stocks to buy right now—and Applied Digital didn’t make the cut. History suggests that matters. Back in December 2004, when Netflix was recommended to Stock Advisor subscribers, a $1,000 investment would have grown to $446,319. When Nvidia was added to the list in April 2005, that same $1,000 stake would have balloons to $1,137,827.

Stock Advisor’s track record shows an average return of 932%—crushing the S&P 500’s 197% return over similar timeframes. The point? Sometimes the real path to millionaire status isn’t finding the hot story that’s already surged 700%, but rather discovering the next undiscovered opportunity before Wall Street catches on.

Applied Digital may deliver solid returns going forward. But at current valuations, and given how much upside has already been captured, newer investors shouldn’t expect to find their millionaire-maker here. The real wealth building typically happens earlier in the cycle—which is exactly why professional stock pickers continue hunting for the next chapter of the AI revolution rather than chasing yesterday’s winners.