CoreWeave vs. Nebius Stock: Nvidia Backs Both, But Here’s the 1 You Should Buy

Nvidia (NVDA) just made its preference clear. The company recently disclosed a 9.3% stake in Nebius Group (NBIS), sending the stock up more than 18% in a single day. CoreWeave (CRWV) also rose about 9% alongside it, though that looked more like a sympathy move than news of its own. Both companies rent out Nvidia-powered computing for AI, and both count Nvidia as a backer. If you can only own one, however, Nebius is the clearer choice.

Part of that comes down to momentum. Nebius is growing at a remarkable pace, with first-quarter revenue up nearly 700% from a year earlier. Management expects its revenue run rate to reach $7 billion to $9 billion by the end of the year. Nebius is also starting to generate positive cash flow, with margins improving quickly. This week’s Nvidia investment news adds a fresh vote of confidence on top of that.

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CoreWeave tells a more complicated story. One of the company’s largest customers, Meta Platforms (META), is also becoming its biggest concern. Reports suggest that Meta is building its own cloud business. That could turn a key client into a competitor almost overnight. Insiders have not helped the mood, either, selling billions of dollars of CRWV stock.

Nebius has its own risks, and neither stock is a safe bet. But with faster growth, real momentum, and Nvidia now backing it directly, Nebius seems like the one to own. 

CoreWeave Is Cheaper. Nebius Is Stronger. 

Both of these companies are still loss-making, which means neither stock can be valued on earnings. On sales, the two look very different. CoreWeave trades at a forward price-to-sales (P/S) ratio of 6.9 times, while Nebius sits far higher at 103 times, based on Barchart data. This metric suggests that CoreWeave is the cheaper stock to own. But the sales multiple alone does not tell the whole story.

The balance sheets pull in opposite directions. CoreWeave holds just $2.27 billion in cash against $35.15 billion in debt. Nebius, on the other hand, holds $9.37 billion in cash against $9.59 billion in debt. CoreWeave also has a smaller market capitalization, making its significant net debt look even more problematic. The difference matters since both companies need to keep borrowing to build capacity. Both companies are expected to become profitable later in the decade, but Nebius is arriving there sooner, already posting positive cash flow while CoreWeave is not.

So, while CoreWeave is cheaper on sales, Nebius offers faster growth and a stronger financial base. This also explains the gap in their stock prices. Year-to-date (YTD), CRWV stock has barely moved compared to NBIS stock’s climb of 164%, showing which of the two investors have been backing. 

GPU-as-a-Service Stock # 1: Nebius Group (NBIS)

Based in the Netherlands, Nebius is an AI infrastructure company that offers cloud computing platforms, large-scale GPU clusters, and software tools for AI developers. In addition to its cloud business, the company also operates TripleTen, an online tech education platform, and Avride, a developer of autonomous driving and delivery robotics technology. Nebius has partnered with Nvidia to grow its AI cloud infrastructure. 

NBIS stock has climbed roughly 326% over the past year, driven by robust AI compute demand, major contract wins, and accelerating revenue growth. In comparison, the First Trust Cloud Computing ETF (SKYY) has delivered returns of about 5% during the same period.

Nebius released its first-quarter fiscal 2026 earnings on May 13. During the quarter, Nebius generated $399 million in revenue, comfortably beating analyst estimates and representing impressive 684% year-over-year (YOY) growth. On the earnings side, diluted EPS came in at $2.11. 

On June 30, Goldman Sachs analyst Alexander Duval raised his price target on NBIS stock from $267 to $286 while keeping a “Buy” rating. Overall, analyst sentiment toward Nebius is positive. Based on 16 Wall Street analysts with coverage, the stock holds a consensus “Moderate Buy” rating. The average price target of $254.92 implies potential upside of 15% from current levels, while the highest price target of $410 suggests potential upside of 86% from here. 

GPU-as-a-Service Stock # 2: CoreWeave (CRWV)

Founded in 2017, CoreWeave is a cloud infrastructure company operating across the United States. The company offers cloud services, GPU computing, networking, storage, and software tools that help businesses develop, deploy, and train AI models. It serves AI developers and enterprise customers. 

Unlike Nebius, CRWV stock has underperformed the broader cloud infrastructure market over the last 12 months. CoreWeave has fallen about 36% while the First Trust Cloud Computing ETF has generated gains of around 5%. This performance gap shows the decline has been driven by company-specific concerns rather than weakness across the broader sector. 

The company posted Q1 2026 results on May 7, with revenue reaching $2.1 billion. However, CoreWeave reported a net loss of $740 million for the quarter.

Despite reporting a net loss, management reaffirmed its full-year 2026 revenue guidance of $12 billion to $13 billion. Additionally, management maintained adjusted operating income guidance of $900 million to $1.1 billion for the fiscal year. For Q2 alone, the company expects revenue to range from $2.45 billion to $2.6 billion and adjusted operating income to range between $30 million and $90 million.

On July 15, Mizuho cut its price target on CRWV stock from $110 to $100 while reiterating a “Neutral” rating, reflecting a cautious stance ahead of the company’s next earnings report. According to Mizuho, its recent channel checks remained positive, supported by continued AI adoption and strong public cloud demand, but the firm lowered the price target as part of a broader update to its software coverage. Still, CRWV stock continues to enjoy strong analyst support with a consensus “Moderate Buy” rating based on 35 Wall Street analysts with coverage. 

On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com