Using this approach, the company said Applied Digital (APLD), TeraWulf (WULF), and Cipher Mining (CIFR) appear to have the largest discrepancies between contracted operations and current valuations. In both cases, Compass Point argues that the market places little value on additional AI capacity that is not yet leased, even though these projects have the potential to generate significant rental income once completed.
Core Scientific (CORZ) and Riot Platform (RIOT) stand out for a number of reasons. Compass Point said Core Scientific’s existing contracts are already heavily factored into the company’s valuation, and further upside potential will likely depend on signing new customers. Riot, on the other hand, is more focused on its future potential than its current lease revenue, with investors weighing the company’s Corsicana campus and extensive AI development pipeline, despite its current relatively limited contract capacity.
The report argues that the next two years will be a turning point in the sector, as companies move from announcing to delivering AI infrastructure contracts. Once projects are completed, tenants move in, and rent payments begin, investors will have a clearer picture of the regular cash flow that these facilities can generate. Successful companies could be given valuations on par with other income-producing infrastructure assets.
