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A fresh capacity expansion from CoreWeave (NASDAQ:CRWV) is landing alongside a broad rally in AI cloud names, and the group is outpacing large-cap tech by a wide margin. CoreWeave stock is at $57.54, up 4% in morning trading.
Neocloud stocks CoreWeave CRWV and Nebius rose about 4% in premarket trading on Tuesday as investors likely bought the dip following a sharp selloff driven by concerns over borrowing costs and the sustainability of debt-funded artificial intelligence infrastructure spending. Meanwhile, French news outlet L'Informé reported on Monday that Nebius had raised 250 million euros (about $279.3 million) for its data centre project near Lille in northern France.
Nebius is one of the fastest-growing AI companies on the planet.
Anthropic releases its S-1, SpaceX borrows $60 billion and Meta initiates an equity offering all ahead of a Fed meeting and the busiest week of earnings season.
While tighter debt markets and heavy Capex pose a real hurdle for pure-play Neoclouds, market history suggests the worst fears may already be priced in.
Nebius Group N.V.'s stock is crashing, down more than 30% from recent highs. The company is much better positioned than other neoclouds and is strong enough to weather higher cost of capital. I expect NBIS to rebound in the short term on strong revenue growth and margin expansion.
Nebius Group NV (NASDAQ:NBIS) shares are climbing Monday, snapping back from a month of declines even as warnings about tight financing for AI infrastructure companies pile up.
I'm upgrading Nebius Group N.V. to a Buy as recent selloff creates an attractive entry point. NBIS stands out with a clean balance sheet, strong customer prepayments, and disciplined capital structure versus highly leveraged peers. Despite sector volatility and premium valuation (13.65x EV/Sales; 33.11x EV/EBITDA), NBIS justifies its multiple through rapid growth and a differentiated cloud offering.