Nebius and CoreWeave Outpace Nvidia in AI Growth
Nebius (NASDAQ: NBIS) and CoreWeave (NASDAQ: CRWV) are rapidly growing cloud computing companies focused on artificial intelligence (AI). In Q1, Nebius reported an extraordinary revenue growth of 684% year-over-year, with projections predicting 551% growth in 2023 and 224% in 2024. By 2027, its revenue is expected to soar from $530 million to $11.2 billion. CoreWeave, while growing at a slower pace, still reported a 112% revenue rise in Q1 to $2.1 billion, maintaining a backlog of nearly $100 billion, with significant future revenue forecasted.
Both companies utilize Nvidia hardware, reflecting Nvidia’s confidence in their potential. However, both Nebius and CoreWeave currently operate at a loss, as they are heavily investing in infrastructure for future growth, leading to increased risk for investors related to capital funding through either debt or share issuance.
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