Using that approach, the firm said Applied Digital (APLD), TeraWulf (WULF) and Cipher Mining (CIFR) appear to offer the biggest disconnect between their contracted businesses and current valuations. In each case, Compass Point maintains that the market is placing little or no value on additional AI capacity that has not yet been leased, despite the potential for those projects to generate significant rental income once completed.
Core Scientific (CORZ) and Riot Platforms (RIOT) stand out for different reasons. Compass Point said Core Scientific’s existing contracts are already largely reflected in its valuation, meaning further upside will likely depend on signing new customers. Riot, meanwhile, is valued more for its future potential than current rental income, with investors placing a premium on its Corsicana campus and broader AI development portfolio despite its relatively limited contracted capacity at present.
The report argues that the next two years will be a turning point for the sector as companies move from announcing AI infrastructure deals to delivering them. As projects are completed, tenants move in, and rental payments begin, investors will have a clearer idea of the recurring cash flow these facilities can generate. Companies that execute successfully could be rewarded with valuations more in line with other revenue-generating infrastructure assets.
