Three Infrastructure Plays in the AI Boom: Can These Companies Deliver Exceptional Returns?

The GPU and Data Center Race Heats Up

The artificial intelligence revolution continues to reshape investment opportunities across multiple sectors. At the center of this transformation sits a critical bottleneck: computing infrastructure. Three companies—Nebius (NASDAQ: NBIS), Applied Digital (NASDAQ: APLD), and SoundHound AI (NASDAQ: SOUN)—are positioned at different angles within this expanding ecosystem, each with their own path to potentially significant growth in 2026.

The demand for GPU computing capacity has reached unprecedented levels. Companies and enterprises scrambling to build AI capabilities are willing to pay premium rates for access to cutting-edge processing power. This dynamic creates a brilliant cost-benefit scenario for infrastructure providers: massive demand with constrained supply.

Inside Three Different Growth Stories

Nebius: From Yandex Spinoff to Data Center Giant

Nebius emerged as an independent entity following the Ukraine war’s impact on its parent company Yandex. The company operates a fundamentally simple business model—leasing data center space equipped with high-end graphics processing units (GPUs) to clients with intensive computing needs.

The growth metrics are staggering. Nebius reported that it has already “sold out” its current capacity, signaling how intense demand has become. Management projects an annual run rate (ARR) reaching $7-9 billion by the conclusion of 2026, compared to just $551 million ARR at the end of Q3. This trajectory represents the kind of expansion that could justify equity appreciation.

Applied Digital: Long-Term Contracts and Steady Expansion

Applied Digital operates data centers with a different strategic advantage—long-term visibility. The company manages facilities in North Dakota and has secured 15-year leases for many of its operations, providing investors with extended visibility into revenue streams. A notable partnership with CoreWeave (NASDAQ: CRWV) positions Applied Digital as a key player in the infrastructure buildout.

Recent quarterly results show Applied Digital’s revenue climbing approximately 84% year-over-year in its fiscal Q1 2026 (ended August 31). As additional computing capacity comes online through 2026, revenue acceleration should follow, though investors should note that major capacity milestones are primarily scheduled for late 2026.

SoundHound AI: The Software Layer

While Nebius and Applied Digital focus on hardware infrastructure, SoundHound AI approaches the AI opportunity through a different lens. The platform combines generative AI with audio recognition technology, creating solutions deployable across numerous industries and applications. Customer service automation represents one particularly promising use case where AI agents could streamline operations significantly.

SoundHound AI demonstrated 68% year-over-year revenue growth in its latest quarter, accompanied by raised full-year guidance. Whether this momentum translates into widespread adoption in 2026 remains the critical question.

Valuation Reality Check

All three companies trade at premium valuations relative to traditional market multiples. None are currently profitable, making price-to-sales ratios the most relevant comparison metric.

Nebius appears expensive at 60 times sales at first glance. However, accounting for its superior growth rate—fastest among the three—reveals a different picture. When evaluated on forward sales metrics, Nebius actually emerges as the cheapest option, highlighting how growth rates can dramatically shift valuation conclusions.

Applied Digital’s valuation remains relatively stable since major revenue inflection points aren’t anticipated until late 2026. SoundHound AI occupies middle ground, trading at approximately 19 times sales.

The Path Forward: Growth Versus Risk

Each company offers a distinct narrative for 2026. Nebius’s explosive ARR expansion could drive outsized stock performance if execution remains on track. Applied Digital’s contracted revenue base provides confidence, though new infrastructure wins could accelerate returns further. SoundHound AI’s potential hinges on whether brilliant cost savings and operational improvements from AI deployment drive enterprise adoption at scale.

That said, investors should recognize the speculative nature embedded in these valuations. Current share prices assume these companies deliver on ambitious projections. Market sentiment has historically shown willingness to overlook valuation concerns during periods of rapid earnings growth, yet this dynamic can shift unexpectedly.

The fundamental thesis remains compelling: the infrastructure underpinning artificial intelligence deployment represents a structural shift in corporate spending. Whether measured through GPU rentals, data center capacity, or AI-powered software solutions, 2026 could prove pivotal for these companies. Investors considering these opportunities should weigh both the genuine growth catalysts and the valuation premiums already priced into each security.