These two companies are poised to win big from the huge jump in artificial intelligence (AI) infrastructure spending this year.
The major hyperscalers in the U.S. are forecast to spend at least $700 billion in capital expenditures (capex) this year to bolster their artificial intelligence (AI) infrastructures. That points toward a major increase over last year’s estimated spending of $394 billion.
There are several stocks investors might want to consider buying to capitalize on this massive spending on AI data centers in 2026. Let’s take a closer look at two critical players in the AI ecosystem that can deliver solid gains to investors thanks to the huge capex opportunity mentioned — Applied Materials (AMAT +0.36%) and Applied Digital (APLD 3.14%).
Image source: Getty Images.
Stronger AI spending is boosting Applied Materials’ growth
Semiconductor equipment manufacturer Applied Materials saw its stock jump 8% after releasing its fiscal 2026 first-quarter results (for the quarter ended Jan. 25, 2026) on Feb. 12. The company’s revenue and earnings comfortably exceeded Wall Street’s expectations, while the guidance was the icing on the cake. Applied Materials’ fiscal Q1 revenue fell 2% from the prior-year period, while non-GAAP (generally accepted accounting principles) earnings were flat at $2.38 per share.
The good news is that Applied Materials’ revenue guidance of $7.65 billion for the current quarter points toward a revenue rise of nearly 8% year over year. Additionally, its earnings guidance of $2.64 per share suggests a potential 10% jump.
Applied Materials CEO Gary Dickerson remarked on the company’s latest earnings call that “the race to build out AI infrastructure is driving unprecedented spending on semiconductors, semiconductor manufacturing capacity, and research and development.” The company reported healthy semiconductor equipment demand from both foundries and memory manufacturers, which isn’t surprising, as companies like Micron Technology and Taiwan Semiconductor Manufacturing have raised their capex to bolster their production lines.
Today’s Change
(0.36%) $1.32
Current Price
$371.15
Key Data Points
Market Cap
$294B
Day’s Range
$366.53 – $377.00
52wk Range
$123.74 – $377.00
Volume
76K
Avg Vol
7.6M
Gross Margin
48.72%
Dividend Yield
0.61%
The massive $700 billion spending by the top four U.S. hyperscalers suggests that the likes of Micron and TSMC may have to add more capacity than they anticipated. This can become a tailwind for Applied Materials for the rest of the year, potentially accelerating its revenue and earnings growth. This probably explains why Applied Materials’ earnings growth is anticipated to jump from 18% in the current fiscal year to 24% in the next one.
As a result, there is a strong chance this AI stock will continue to rise despite gaining an impressive 110% over the past year.
Applied Digital’s business is likely to experience even more stunning growth
Applied Digital is known for designing, developing, and operating AI data centers. The company’s business is booming due to the aggressive AI data center buildout.
Today’s Change
(-3.14%) $-0.99
Current Price
$30.54
Key Data Points
Market Cap
$8.8B
Day’s Range
$30.35 – $31.28
52wk Range
$3.31 – $42.27
Volume
113K
Avg Vol
31M
Gross Margin
16.40%
Applied Digital’s business model involves constructing data centers tailored to its clients’ needs and generating revenue from the fit-out services it provides. The company also receives lease revenue from its tenants for operating those data centers.
Applied Digital is currently building two data center campuses in North Dakota. It has already contracted potential lease revenue worth $16 billion for the next 15 years. Applied Digital is currently constructing 600 megawatts (MW) of data center capacity at its two campuses, and the good part is that it is in advanced discussions to build another three campuses that can generate 900 MW.
According to CEO Wesley Cummins:
Having secured two hyperscale leases in the region, inbound demand has increased meaningfully. As a result, we are in advanced discussions with another investment-grade hyperscaler across multiple regions, including additional locations in the Dakotas and select Southern U.S. markets.
Don’t be surprised to see Applied Digital break ground on even more campuses this year, considering the $700 billion capex spending by the major hyperscalers. Importantly, the new campuses should help Applied Digital bring in more fit-out revenue while also improving its revenue pipeline for the long run through additional leases.
Applied Digital’s revenue shot up by 250% year over year in the second quarter of fiscal 2026 to $127 million. Analysts expect its outstanding growth trajectory to continue.
Data by YCharts.
Of course, investors will have to pay almost 33 times sales to buy Applied Digital stock right now. But that multiple is justified by the tech stock’s stunning growth rate, a robust lease revenue pipeline, and the potential to add more data center sites to meet the growing demand for AI computing power.