Nebius Stock Has Made a Big Move. This Artificial Intelligence (AI) Stock Could Be Next.

The burgeoning AI data center market, projected to reach $400 billion by 2028, is driving significant investment, exemplified by Nebius's recent $19.4 billion Microsoft contract. However, CoreWeave is presented as a more compelling alternative, boasting a $30.1 billion backlog—including major contracts with OpenAI and Microsoft—and a substantially larger contracted capacity of 2.2 GW compared to Nebius's 1 GW target. CoreWeave's Q2 2025 revenue surged 207% to $1.2 billion, yet it trades at a significant valuation discount of less than 14x sales, contrasting sharply with Nebius's 91x, suggesting considerable upside potential amidst robust demand for AI infrastructure.

Analysis

The AI data center market, projected to reach $400 billion by 2028, is experiencing a surge in demand from hyperscalers, as exemplified by Nebius Holdings' (NBIS) transformative $19.4 billion contract with Microsoft. This deal, which caused NBIS stock to rise nearly 50%, highlights the premium placed on specialized GPU capacity. However, a comparative analysis positions CoreWeave (CRWV) as a more compelling investment case based on superior operational metrics and a significant valuation discount. CoreWeave reported a 207% year-over-year revenue increase to $1.2 billion in Q2 2025 and boasts a rapidly growing backlog of $30.1 billion, nearly double its size from the start of the year, bolstered by substantial contracts from OpenAI and its largest customer, Microsoft. Furthermore, CoreWeave holds a distinct capacity advantage with 470 MW of active power versus Nebius's 220 MW, and a contracted capacity pipeline of 2.2 GW that far exceeds Nebius's 1 GW target. Despite these stronger fundamentals and a larger growth runway, CoreWeave trades at a price-to-sales multiple of less than 14x, representing a stark discount to Nebius's 91x multiple.

Key Decisions for Investors

• Investors should evaluate CoreWeave (CRWV) as a primary vehicle for AI infrastructure exposure, given its 207% revenue growth, substantial $30.1 billion backlog, and a compelling valuation at less than 14 times sales versus peer Nebius's 91x.
• Closely monitor CoreWeave's execution in converting its 2.2 GW of contracted power into active, revenue-generating capacity, as this is the key catalyst for realizing its projected growth and closing the valuation gap.
• Consider a relative value strategy, such as a long position in CRWV against a short position in NBIS, to capitalize on the stark divergence in operational scale, growth runway, and valuation multiples between the two companies.