CoreWeave is attracting renewed attention from Wall Street after GF Securities initiated coverage with a “Buy” rating, but the spotlight is increasingly shared with Nebius, a fast-growing rival that is aggressively expanding its AI infrastructure.
GF Securities Bullish on CoreWeave
GF Securities cited strong long-term demand, CoreWeave’s partnerships with major hyperscale cloud and internet companies, and a path to profitability by 2028 as key reasons for the optimistic outlook. The firm described CoreWeave as “positioned as a long-term winner” due to its early deployment of GPUs, exclusive focus on AI, and substantial long-term agreements. This endorsement helped lift CoreWeave’s stock to $105.49 before Tuesday’s market open.
Nebius Posts Explosive Growth
Nebius, meanwhile, reported first-quarter revenue of $399 million, a staggering 684% increase year-over-year, and adjusted EBITDA of $129.5 million. The Amsterdam-based company has also raised its 2026 capital spending forecast to between $20 billion and $25 billion as it scales up capacity for AI cloud demand. Its shares traded at $214.77 ahead of Tuesday’s opening bell, reflecting investor enthusiasm for its growth trajectory.
Major Customer Contracts Fuel Competition
Both companies are heavily reliant on contracts from tech giants. CoreWeave has disclosed multiple new agreements with Meta, including a $21 billion commitment signed in March. Nebius has also secured significant deals, with AI infrastructure contracts from Meta worth up to $27 billion over five years, and a separate $17.4 billion deal with Microsoft. These commitments underscore the intense demand for AI compute resources.
Power and Infrastructure Constraints
Securing adequate power remains a critical challenge for both firms. Nebius announced on May 20 that it will use Bloom Energy fuel cells to power its AI infrastructure, with 328 megawatts of installed capacity expected this year. “Power remains a key constraint,” said Andrey Korolenko, Nebius’s chief product and infrastructure officer. The company also broke ground on a gigawatt-scale AI factory campus in Independence, Missouri, its first major U.S. digital infrastructure project, spanning 400 acres and expected to support 1,200 construction jobs.
Financial Risks and Debt Burdens
Despite the growth, both companies face significant financial risks. CoreWeave reported a first-quarter net loss of $740 million and net interest expense of $536 million, highlighting the thin margins and debt-heavy financing that concern some analysts. D.A. Davidson initiated coverage of both stocks at Neutral, with analyst Gil Luria pointing to CoreWeave’s margin risk and insider selling, while noting that Nebius’s recent rally limits near-term upside. Nebius has also warned that its future results depend on securing financing, power, equipment, and customers in a highly competitive market.
Market Context and Outlook
The AI infrastructure trade is shifting beyond chipmakers to specialist cloud providers known as “neoclouds.” CoreWeave and Nebius are at the forefront, racing to prove that demand from major players like Meta, Microsoft, and OpenAI can justify tens of billions in capital spending. CoreWeave’s revenue backlog stands at $99.4 billion, while Nebius’s revenue growth rate is faster. The next test for both will be converting signed demand into sustainable operating profit before debt costs, power constraints, and competition from larger cloud providers take their toll.
