In the whirlwind world of AI infrastructure, Nebius Group NV (NASDAQ:NBIS) has surprised investors with a 200% rally compared to CoreWeave Inc (NASDAQ:CRWV) since hitting its low on June 9.
Meanwhile, CoreWeave, the larger and more fundamentally grounded player, has lagged behind, leaving traders asking: is Nebius a rational bet, or a hype-fueled anomaly?
- Track NBIS stock rally here.
Paying Up For The Hype
The valuation gap is staggering. Nebius trades at a price-to-sales ratio of 64.3, more than five times CoreWeave's 12.9, per Benzinga Pro data.
CoreWeave offers superior GPU access, larger data centers, and stronger ties to Nvidia Corp (NASDAQ:NVDA), yet trades at a lower price; Nebius's high valuation is hype-driven and overstates its core business. Investors are effectively paying a premium for the smaller player's story, betting on AI growth and speculative momentum rather than scale or fundamentals.
Read Also: Half Of Nebius’ Value Is Hiding In Plain Sight — And Wall Street’s Missing It
The surge from the June lows highlights the disconnect: while CoreWeave grows steadily, Nebius's stock appears to be driven by excitement, retail attention, and the narrative of capturing AI's explosive potential. It's a classic case of "story over substance," where multiples stretch far beyond traditional valuation logic.
Scale Vs. Speculation
CoreWeave remains the more measured option, offering larger scale at a far more modest multiple. For long-term investors, its fundamentals—steady revenues, stronger EBITDA, and robust market presence—signal a bargain. NBIS, on the other hand, is riding a wave of momentum that could reverse as quickly as it appeared.
The AI sector's enthusiasm shows no signs of slowing, but the contrast between the two names is extreme. Those betting on Nebius are effectively wagering that hype-driven growth can justify sky-high multiples—while CoreWeave advocates argue that real scale and margins will ultimately prevail.
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