While Nvidia and Palantir remain star players in the artificial intelligence boom—with year-to-date gains of 24% and 108%, respectively—two emerging AI cloud infrastructure providers have delivered even more impressive performance. US-based CoreWeave (NASDAQ: CRWV), which went public in late March, has surged by 144%, while Netherlands-based Nebius (NBIS), spun off from Russia’s Yandex and relisted on the Nasdaq last October, has skyrocketed by 377%.
Both companies specialize in providing data center resources and computing power to hyperscale clients and AI startups for running high-intensity AI workloads. Although CoreWeave transitioned from a crypto-focused business and emphasizes performance hardware, and Nebius—originating from Yandex—offers a broader suite of software services, both are experiencing explosive growth. CoreWeave’s Q2 revenue increased 206% year-over-year to $1.21 billion, while Nebius saw a 625% surge in revenue during the same period, reaching $105.1 million.
However, this rapid growth comes with significant losses. Both companies remain unprofitable due to continuous investment in infrastructure expansion. The industry also faces risks related to technological obsolescence—current-generation chips may depreciate as technology evolves—as well as growing concerns about a potential bubble in AI infrastructure.
Microsoft recently signed a multi-year agreement with Nebius worth $17.4 billion to deploy GPU infrastructure at a new data center in New Jersey, with an option to purchase an additional $2 billion in services or capacity. This news drove Nebius’ stock up 40% in a single day and also lifted CoreWeave shares by more than 5%. As of Q2, CoreWeave’s backlog of unfulfilled orders totaled $30.1 billion.
Valuations between the two companies differ significantly: CoreWeave currently trades at a price-to-sales ratio of 13, while Nebius commands a lofty P/S ratio of 61. Analysts suggest that although both stocks carry substantial downside risk, investors who have already profited from established players like Nvidia may consider diversifying parts of their gains into these high-growth stocks. If AI industry expansion continues, these two companies may well keep outperforming sector leaders in the coming years.
