Using this approach, the firm said Applied Digital ( APLD ), TeraWulf ( WULF ) and Cipher Mining ( CIFR ) appear to offer the biggest disconnect between their agreed business and current valuations. In each case, Compass Point argues that the market assigns little, if any, value to additional AI capacity not yet leased, despite the potential for these 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 is likely to depend on signing on new customers. Riot, meanwhile, is valued more on future potential than current rental income, with investors placing a premium on the Corsicana campus and broader AI development pipeline despite its relatively limited contractual capacity today.
The report claims that the next two years will be a turning point for the sector as companies shift from announcing AI infrastructure deals to delivering them. As projects are completed, tenants move in and lease payments begin, investors will get a clearer picture of the recurring cash flow these facilities can generate. Companies that execute successfully may be rewarded with valuations more in line with other income-producing infrastructure assets.
