University of Kwazulu-Natal

Better Artificial Intelligence Ai Stock Coreweave Vs Nebius

Bonisiwe Shabane
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better artificial intelligence ai stock coreweave vs nebius

Which one of these two high-flying necloud companies should you consider buying right now? CoreWeave (CRWV +5.02%) and Nebius Group (NBIS +0.90%) are two companies that have been growing at an incredible pace owing to their business model. These companies are in the business of building data centers capable of running artificial intelligence (AI) workloads and renting them out to hyperscalers, AI companies, or anyone looking to buy dedicated AI data center... Formally known as neocloud companies, both CoreWeave and Nebius have seen incredible jumps in their stock prices this year. While CoreWeave is up 84% since its initial public offering (IPO) in late March this year, Nebius stock has shot up a stunning 231% this year. But if you had to choose from one of these two neocloud stocks for your portfolio right now, which one should it be?

CoreWeave went public toward the end of March, and it was the biggest tech IPO in the U.S. since 2021. Shares of the company rose impressively over the next few months and hit a high on June 20. However, it has been all downhill for CoreWeave since then, with the stock losing over 60% of its value. CoreWeave investors got another shock recently after the company released its third-quarter results. Though it reported massive year-over-year growth of 134% in its revenue to $1.36 billion, CoreWeave had to slightly reduce its full-year guidance.

It now expects full-year revenue to land at $5.1 billion at the midpoint of its guidance range, down from the earlier estimate of $5.25 billion. AI needs power and GPUs. You’re deciding whether to own the landlords. If you think of AI as a gold rush, Nebius NBIS 0.00%↑ and CoreWeave CRWV 0.00%↑ are not selling apps. They are selling shovels, land, and power lines. Both are “neocloud” providers: GPU heavy data centers, wired and tuned for model training and inference, rented out mostly to hyperscalers and big AI labs.

They are posting triple digit growth, signing multi billion dollar contracts with Microsoft, Meta, OpenAI and Nvidia, and burning enormous amounts of cash to build capacity. On paper, it looks simple: massive demand, high gross margins, long dated contracts. In practice, you’re underwriting highly levered, project finance style stories where execution, funding conditions and a few customers matter more than any spreadsheet. This note is for medium to long term investors trying to answer a basic question: NVDA Quick QuoteNVDA NBIS Quick QuoteNBIS CRWV Quick QuoteCRWV CoreWeave, Inc.

(CRWV Quick QuoteCRWV - Free Report) and Nebius Group N.V. (NBIS Quick QuoteNBIS - Free Report) are emerging AI-focused cloud infrastructure providers positioning themselves as agile alternatives to traditional hyperscalers like Amazon Web Services and Azure, aiming to capitalize on the growing demand for... The rapid proliferation of AI is transforming the entire tech scene, and AI infrastructure has become a high-stakes battleground for tech companies. Per an IDC report, spending on AI infrastructure is expected to top $200 billion by 2028. This uptrend in spending benefits both CoreWeave and Nebius, but not equally. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out?

Let us delve a little deeper into the companies’ strengths and weaknesses to see which is the better stock pick? CoreWeave is an AI-focused hyperscaler company, and its cloud platform has been developed to scale, support, and accelerate GenAI. Businesses have been increasing spending on AI inference/fine-tuning, AI workload monitoring, and training infrastructure, including training compute, AI servers, AI storage, cloud workloads and networking. This increasing demand for AI cloud platforms, including integrated software and infrastructure, bodes well for CRWV. In the last reported quarter, revenues of $981.6 million beat the Zacks Consensus Estimate by 15.2% and jumped 420% year over year. Daily stocks & crypto headlines, free to your inbox

By continuing, I agree to the Market Data Terms of Service and Privacy Statement In the Nvidia Corp (NASDAQ:NVDA)-backed AI infrastructure race, Nebius Group NV (NASDAQ:NBIS) and CoreWeave Inc (NASDAQ:CRWV) are vying for supremacy. With explosive growth and distinct strategies, this battle hinges on fundamental strengths and technical signals. Here's an investor-focused breakdown of which stock might outrun the other. Nebius wields a financial fortress: $2.4 billion in cash, zero debt, and a disciplined, demand-driven data center rollout. It’s $106.21 million in TTM revenue (385% YoY growth) trails CoreWeave's $1.73 billion (420% YoY growth), but Nebius' diversified client base—spanning European startups, enterprises and governments—shields it from overreliance risks.

CoreWeave's revenue engine is turbocharged, with $1.28 billion in TTM gross profit and $923.84M EBITDA, but its $8 billion debt load and $264 million first-quarter interest expenses underscore the risk. Meanwhile, 77% of CoreWeave's projected 2024 revenue is concentrated among just two clients, with Microsoft Corp. (NASDAQ:MSFT) alone accounting for 62%. This high client concentration exposes the company to significant risk should either client scale back or terminate their business. CoreWeave, Inc. CRWV and Nebius Group N.V.

NBIS are emerging AI-focused cloud infrastructure providers positioning themselves as agile alternatives to traditional hyperscalers like Amazon Web Services and Azure, aiming to capitalize on the growing demand for AI cloud solutions. The rapid proliferation of AI is transforming the entire tech scene, and AI infrastructure has become a high-stakes battleground for tech companies. Per an IDC report, spending on AI infrastructure is expected to top $200 billion by 2028. This uptrend in spending benefits both CoreWeave and Nebius, but not equally. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out? Let us delve a little deeper into the companies’ strengths and weaknesses to see which is the better stock pick?

CoreWeave is an AI-focused hyperscaler company, and its cloud platform has been developed to scale, support, and accelerate GenAI. Businesses have been increasing spending on AI inference/fine-tuning, AI workload monitoring, and training infrastructure, including training compute, AI servers, AI storage, cloud workloads and networking. This increasing demand for AI cloud platforms, including integrated software and infrastructure, bodes well for CRWV. In the last reported quarter, revenues of $981.6 million beat the Zacks Consensus Estimate by 15.2% and jumped 420% year over year. In the first quarterearnings call CRWV highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion... It recently unveiled the next generation of its CoreWeave AI object storage.

This is purpose-built for training and inference, offering a production-ready, scalable solution integrated with Kubernetes. Apart from scaling capacity and getting adequate financing for infrastructure, CRWV is also expanding its go-to-market capabilities. Moreover, the buyout of the Weights and Biases acquisition has added 1,400 AI labs and enterprises as clients for CoreWeave. CoreWeave and Nebius are growing at incredible rates thanks to the booming demand for data center compute. Both companies seem set to deliver outstanding growth in the long run thanks to their huge backlogs. However, one of these names is trading at a much cheaper valuation than the other one.

CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS) are two companies that have been growing at an incredible pace owing to their business model. These companies are in the business of building data centers capable of running artificial intelligence (AI) workloads and renting them out to hyperscalers, AI companies, or anyone looking to buy dedicated AI data center... Formally known as neocloud companies, both CoreWeave and Nebius have seen incredible jumps in their stock prices this year. While CoreWeave is up 84% since its initial public offering (IPO) in late March this year, Nebius stock has shot up a stunning 231% this year. But if you had to choose from one of these two neocloud stocks for your portfolio right now, which one should it be? Both stocks have delivered stunning gains this year, and one of them is still a no-brainer buy.

Nebius Group (NBIS 0.36%) and CoreWeave (CRWV +2.36%) set the stock market on fire this year, clocking stunning gains of more than 200% as of this writing, thanks to their phenomenal growth. While Nebius' stock is up 309% so far in 2025, shares of CoreWeave have shot up 233% in a span of just six months since its initial public offering. Importantly, both companies look capable of sustaining their outstanding growth long-term thanks to the booming demand for their dedicated artificial intelligence (AI) cloud infrastructure. But if you had to choose from one of these two high-flying growth stocks for your portfolio, which one should it be? Let's find out. Nebius got a massive shot in the arm recently after announcing a five-year contract with Microsoft worth $17.4 billion.

The deal, which could go up to $19.4 billion if Microsoft opts to use additional Nebius services, is going to be a game-changer for the company.

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