{"id":321163,"date":"2025-10-21T12:35:20","date_gmt":"2025-10-21T12:35:20","guid":{"rendered":"https:\/\/www.europesays.com\/us\/321163\/"},"modified":"2025-10-21T12:35:20","modified_gmt":"2025-10-21T12:35:20","slug":"better-artificial-intelligence-stock-nebius-group-vs-coreweave","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/321163\/","title":{"rendered":"Better Artificial Intelligence Stock: Nebius Group vs. CoreWeave"},"content":{"rendered":"\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Organizations around the world are hungry for AI computing capacity.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">The escalating need for AI compute drove triple-digit sales growth for CoreWeave and Nebius Group in the second quarter.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">CoreWeave and Nebius are racing to expand their data center footprint, and taking on debt to do it.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=bc629902-3581-49f6-b244-68d88acae0e8&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000053%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_yahoo%26ftm_pit%3D17670\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 stocks we like better than Nebius Group \u203a;elm:context_link;itc:0;sec:content-canvas\">10 stocks we like better than Nebius Group \u203a<\/a><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\">The arrival of<a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ad93abfd-81fe-4449-9c23-28b7feb03285\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:artificial intelligence;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"> artificial intelligence<\/a> (AI) created tremendous demand for computing power. There&#8217;s such a shortage today, companies specializing in this area are seeing incredible sales growth. Among these businesses are <strong>Nebius Group<\/strong> (NASDAQ: NBIS) and <strong>CoreWeave<\/strong> (NASDAQ: CRWV).<\/p>\n<p class=\"yf-1090901\">Nebius shares have surged more than 300% this year through the week ending Oct. 17. CoreWeave <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/types-of-stocks\/ipo-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ad93abfd-81fe-4449-9c23-28b7feb03285\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:went public;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">went public<\/a> at the end of March around $40 per share, and since then, the stock has more than tripled.<\/p>\n<p class=\"yf-1090901\">The tech spending on artificial intelligence shows no sign of slowing, creating a tailwind for CoreWeave and Nebius. But is one of these AI infrastructure specialists a superior investment over the other?<\/p>\n<p class=\"yf-1090901\">Let&#8217;s dive into each company to find out.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"The letters &quot;AI&quot; are written on a digital cloud floating above circuitry.\" loading=\"eager\" height=\"517\" width=\"960\" class=\"yf-1gfnohs loader\"\/> Image source: Getty Images.         <\/p>\n<p class=\"yf-1090901\">CoreWeave was once focused on cryptocurrency mining. Consequently, it accumulated computing capacity before the company decided to pivot into charging for use of its AI-optimized infrastructure.<\/p>\n<p class=\"yf-1090901\">The prescient move transformed CoreWeave. With organizations rushing to acquire more AI processing power, the company&#8217;s second-quarter sales skyrocketed to $1.2 billion from $395.4 million last year.<\/p>\n<p class=\"yf-1090901\">Among the businesses gobbling up CoreWeave&#8217;s services is OpenAI, which expanded its previous $11.9 billion commitment to $22.4 billion in September. Other marquee businesses buying up CoreWeave computing capacity include <strong>Toyota Motor<\/strong> and <strong>Microsoft<\/strong>.<\/p>\n<p class=\"yf-1090901\">Its success led CoreWeave to forecast full-year sales between $5.2 billion and $5.4 billion. This outlook is a jaw-dropping increase from the $1.9 billion generated in 2024.<\/p>\n<p class=\"yf-1090901\">Even so, sales could rise higher. The company&#8217;s remaining performance obligations as of Q2 were $30.1 billion, nearly double the $16.2 billion it had a year ago.<\/p>\n<p class=\"yf-1090901\">However, this success comes at a cost. To meet the enormous AI demand, CoreWeave invested in expanding its footprint of data centers. This resulted in operating expenses of $1.2 billion in Q2, up from $317.7 million in the previous year.<\/p>\n<p class=\"yf-1090901\">To finance its costly expansion, CoreWeave accumulated massive debt. It exited Q2 with more than $10 billion in debt on its balance sheet.<\/p>\n<p class=\"yf-1090901\">The company then added to this sum in July, when it closed a $1.8 billion senior notes offering, as well as a $2.6 billion secured debt financing facility. All of this indebtedness makes CoreWeave look like a house of cards that could collapse if it can&#8217;t keep up its sales growth.<\/p>\n<p> Story Continues  <\/p>\n<p class=\"yf-1090901\">Like CoreWeave, Nebius Group is a provider of high-performance cloud computing infrastructure for AI systems. So it&#8217;s not surprising Nebius is experiencing a similar financial outcome to its competitor.<\/p>\n<p class=\"yf-1090901\">The company&#8217;s Q2 sales soared 625% year over year to $105.1 million. Nebius is poised for further sales growth in the near future. In September, it signed a multiyear deal with Microsoft to deliver dedicated computing capacity starting this year.<\/p>\n<p class=\"yf-1090901\">And like CoreWeave, Nebius is rushing to expand its data centers. As a result, its capital expenditures rose 49% year over year to $91.5 million in Q2.<\/p>\n<p class=\"yf-1090901\">Nebius turned to debt to finance this expansion. It exited Q2 with nearly $1 billion in debt, a dramatic increase from a mere $6.1 million at the end of 2024. In addition, last month it closed a senior notes offering and issued more stock for a combined $4.2 billion in gross proceeds.<\/p>\n<p class=\"yf-1090901\">At this point, the company&#8217;s financial position is starting to look similar to CoreWeave&#8217;s. Nebius is increasing its debt load to fuel business expansion.<\/p>\n<p class=\"yf-1090901\">This volatile mix could reach a tipping point if sales slow, although given the stupendous growth the AI market is experiencing, that may not come to pass for a few years.<\/p>\n<p class=\"yf-1090901\">The current AI gold rush has created unprecedented revenue opportunities for Nebius and CoreWeave. In the coming years, the AI industry is projected to grow from $255 billion in 2025 to an astonishing $1.7 trillion by 2031.<\/p>\n<p class=\"yf-1090901\">But between the two, CoreWeave looks like the better investment right now. One key factor here is share price valuation. A good way to assess this is to look at each company&#8217;s forward price-to-sales (P\/S) ratio.<\/p>\n<p class=\"yf-1090901\">This metric measures how much investors are prepared to pay for every dollar of projected revenue over the next 12 months. Given the impending income from Nebius&#8217; deal with Microsoft, understanding how these future sales might impact stock value is particularly insightful.<\/p>\n<p>  <a href=\"https:\/\/ycharts.com\/companies\/NBIS\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"NBIS PS Ratio (Forward) Chart\" loading=\"lazy\" height=\"456\" width=\"720\" class=\"yf-1gfnohs loader\"\/><\/a> <a href=\"https:\/\/ycharts.com\/companies\/NBIS\/chart\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Data by;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Data by <\/a><a href=\"https:\/\/ycharts.com\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YCharts;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">YCharts<\/a>.    <\/p>\n<p class=\"yf-1090901\">The chart reveals CoreWeave has a substantially lower P\/S multiple, indicating it is the better value. That said, neither stock is cheap.<\/p>\n<p class=\"yf-1090901\">Moreover, since both are piling up on debt to fuel sales growth, this risky situation means CoreWeave stock isn&#8217;t for the faint of heart. Consider an investment only if you have a high risk tolerance, and ideally, after the stock price dips.<\/p>\n<p class=\"yf-1090901\">Before you buy stock in Nebius Group, consider this:<\/p>\n<p class=\"yf-1090901\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f07d9c52-0706-4867-8513-24983664fc23&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001161%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D18416&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ad93abfd-81fe-4449-9c23-28b7feb03285\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 best stocks<\/a><\/strong> for investors to buy now\u2026 and Nebius Group wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1090901\">Consider when <strong>Netflix<\/strong> made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $646,805<\/strong>!* Or when <strong>Nvidia<\/strong> made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, <strong>you\u2019d have $1,123,113<\/strong>!*<\/p>\n<p class=\"yf-1090901\">Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 1,055% \u2014 a market-crushing outperformance compared to 189% for the S&amp;P 500.\u00a0<strong>Don&#8217;t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/strong><\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f07d9c52-0706-4867-8513-24983664fc23&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001161%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D18416%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DNebius%2520Group&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ad93abfd-81fe-4449-9c23-28b7feb03285\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\"><strong>See the 10 stocks \u00bb<\/strong><\/a><\/p>\n<p class=\"yf-1090901\">*Stock Advisor returns as of October 20, 2025<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/author\/20107\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Robert Izquierdo;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Robert Izquierdo<\/a> has positions in Microsoft and Toyota Motor. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/investing\/2025\/10\/21\/better-artificial-intelligence-stock-nebius-group\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Better Artificial Intelligence Stock: Nebius Group vs. CoreWeave;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Better Artificial Intelligence Stock: Nebius Group vs. CoreWeave<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Organizations around the world are hungry for AI computing capacity. The escalating need for AI compute drove triple-digit&hellip;\n","protected":false},"author":3,"featured_media":321164,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,738,18314,160806,10965,158,67,132,68],"class_list":{"0":"post-321163","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-coreweave","11":"tag-nebius-group","12":"tag-sales-growth","13":"tag-technology","14":"tag-united-states","15":"tag-unitedstates","16":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115412187437948021","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/321163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=321163"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/321163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/321164"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=321163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=321163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=321163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}