Motley Fool writer picks IREN over Applied Digital for 2026, citing five-year deals worth nearly $9.7 billion with Microsoft and roughly $3.4 billion with Nvidia, plus $4 billion in contracted annual recurring revenue for 2026 capacity. Both lost money in FY2026.
Applied Digital's FY2026 revenue surged 183.7% to nearly $611.3 million, while it reported a net loss of about $244 million. IREN's revenue rose 41.1% to nearly $707 million; its net loss was nearly $702.6 million and free cash flow was roughly negative $2.2 billion.
Applied Digital's price-to-sales ratio based on trailing sales was 13.1x, below IREN's 23.0x; neither had a forward P/E listed. The article flags Applied Digital's customer concentration, noting its Polaris Forge 1 site is fully contracted to CoreWeave, and IREN's nearly $7.98 billion in total debt and transition from Bitcoin mining. It also says Nvidia certified IREN as a reference-quality cloud provider for its most advanced chips.
