Nebius and CoreWeave: Which Stock Attracts Investors?

Nebius and CoreWeave: Which Stock Attracts Investors?

Investor interest in artificial intelligence and cloud infrastructure is increasing every day. In this context, Nebius (NBIS), which offers "neocloud" solutions, and CoreWeave (CRWV), which provides GPU-based cloud services, stand out as two frequently compared names among investors. So, which one potentially offers a more attractive investment opportunity?

Nebius: Long-Term Ecosystem Advantages

Nebius, as a Europe-based neocloud provider, follows a balanced strategy. The $17.4 billion contract it signed with Microsoft provides a significant revenue source by guaranteeing a large-scale customer base. Additionally, it is observed that the company's diversification of its customer base reduces risk and exhibits more cautious capital management.

Analysts indicate that Nebius is more attractive in terms of valuation compared to CoreWeave. The company's non-core assets, such as the educational platform TripleTen and the autonomous vehicle unit Avride, enhance its financial flexibility. This makes Nebius a more stable option for long-term investors.

CoreWeave: Specialization and Rapidly Growing Market

CoreWeave transformed its journey, which started with Ethereum mining, into providing GPU-weighted cloud services. With its strong infrastructure, the company optimizes artificial intelligence and machine learning workloads, serving more than 250,000 Nvidia GPUs across over 30 data centers. The $14.2 billion contract it made with Meta strengthens revenue visibility and boosts investor confidence.

However, with CoreWeave's growth, certain risks come into play. A significant portion of the company's revenue depends on a few major customers; this could create vulnerability in the event of customer loss. Analysts emphasize that CoreWeave's borrowing costs are above 9% and that the returns on its assets are below 5%.

Valuation and Growth Comparison

In comparisons of past growth rates, it is observed that CoreWeave's annual revenue growth is around 700%, while Nebius hovers at approximately 460%. CoreWeave's high revenue backlog is a positive factor to consider, but careful attention is required in terms of valuation.

Which Option is Better for Investors?

Nebius stands out with its long-term ecosystem advantages, while CoreWeave excels in the short and medium term with its specialized infrastructure. It is emphasized that both companies are dependent on the growth of the artificial intelligence market and that potential risks should be assessed. Investors should evaluate their strategic preferences between these two stocks based on their time horizon and risk-return profile.