Can Applied Digital Help You Build Millionaire-Level Wealth? What Growth Investors Should Know

Artificial intelligence is fundamentally reshaping infrastructure investment opportunities. The computing demands of AI have created an unprecedented infrastructure gap—traditional data centers cannot support the technological requirements of modern AI systems. Applied Digital (NASDAQ: APLD) stands at the forefront of this shift, building specialized AI computing facilities designed to become a millionaire-maker opportunity for early believers. With multiple data center campuses launching through 2027, the company has positioned itself as a critical player in a sector expected to see explosive expansion. But whether new investors can still build significant wealth through this investment requires careful analysis.

How AI Data Centers Drive Revenue and Growth Potential

Applied Digital’s transformation illustrates why so many investors believe becoming a millionaire through tech investments is still possible. The company transitioned from cryptocurrency-focused operations into AI infrastructure provision as market dynamics shifted dramatically. According to McKinsey & Company research, data center spending could reach $7 trillion by 2030, with AI consuming the lion’s share of capital deployment.

The company is constructing three major facilities that will drive future revenue: Polaris Forge 1 and Polaris Forge 2 will deliver 450 MW and 300 MW of capacity respectively, with both expected operational by 2027. Delta Forge 1, a 430 MW campus, could launch by mid-2027. These projects represent the infrastructure backbone for a company chasing millionaire-level valuations.

Applied Digital has already secured major customer commitments that hint at the revenue potential. The company signed a $11 billion lease agreement with CoreWeave spanning 15 years, plus an additional $5 billion deal with another undisclosed AI company over the same period. These contracts provide visibility into recurring revenue streams and demonstrate market demand validation.

Financial Projections Meet Valuation Reality

Here’s where wealth-building investors must apply healthy skepticism. Wall Street estimates Applied Digital will generate $346 million in revenue for fiscal 2026 (ending May 31) and $535 million in fiscal 2027. With a current market capitalization near $9.5 billion, the stock commands a valuation of 17-18 times next year’s projected revenue—a premium valuation for a company still consuming significant capital.

The stock has appreciated 700% over the past 18 months, which raises an important question for new investors wondering how to become a millionaire: Has this opportunity already been captured? Those who invested a year and a half ago have indeed seen substantial gains. However, the company faces several headwinds that temper additional upside: it depends on a small number of large contracts, remains unprofitable while funding massive construction projects, and operates in an industry where demand could fluctuate if AI investment cycles cool.

Assessing Investment Strategy and Risk Factors

The core tension for investors seeking millionaire-level returns involves timing and risk tolerance. The exceptional gains of early investors reflected reasonable valuations combined with explosive growth narratives. Today’s significantly higher valuation suggests much of that opportunity has been realized.

Several considerations matter for anyone still evaluating whether Applied Digital fits their wealth-building strategy:

• Execution Risk: Bringing multiple massive data centers online while maintaining construction budgets and timelines requires flawless operational execution.
• Customer Concentration: Dependency on a handful of major customers creates vulnerability if any single relationship deteriorates.
• Capital Requirements: The company is burning cash to fund infrastructure build-out, which could pressure financial flexibility if revenue growth disappoints.
• Industry Cyclicality: AI investment trends could shift, potentially dampening demand for new data center capacity.

The Path Forward for Wealth-Seeking Investors

The question of whether applied digital infrastructure investments can help you become a millionaire has a nuanced answer. Applied Digital remains a legitimate player in a genuinely expanding industry with real customer demand validation. However, the dramatic stock price appreciation means new investors should calibrate their return expectations accordingly.

Investors who accumulated shares 18 months ago captured a transformational opportunity. For new buyers entering at current valuations, the path to millionaire-level wealth through this single investment appears less certain. Rather than viewing Applied Digital as a standalone wealth-building vehicle, sophisticated investors might incorporate it as one component within a diversified technology infrastructure strategy, recognizing both its genuine growth potential and the valuation realities that now constrain additional upside.