Better Neocloud Stock: CoreWeave vs. Nebius
CoreWeave and Nebius provide cloud infrastructure for AI model training and running. CoreWeave scaled rapidly through leased infrastructure and debt financing, while Nebius designs and develops its own cloud software and has a stronger financial position.
Intelligence analysis by Llama
The better stock depends on whether CoreWeave's scale and backlog outweigh its financing burden or whether Nebius can turn its stronger financial position into better shareholder returns.
Imagine you have two companies that help train and run artificial intelligence models. One company, CoreWeave, has grown really fast by leasing space and borrowing money, but it's struggling to make a profit. The other company, Nebius, designs its own tools and has a stronger financial position, but it's smaller and still building its capacity. Which one is a better investment?
Analysis
A $60B Vote of Confidence
CoreWeave generated revenue close to $2.1 billion in the first quarter, up 112% year over year, and had more than 1 gigawatt of power capacity operating across its data centers. The company also ended the first quarter with $99.4 billion of revenue backlog, showing strong visibility into future revenue. However, much of that backlog will not become revenue until the company delivers the promised computing capacity and makes the service available to customers.
Why Cursor?
Nebius is a smaller company, but its first-quarter revenue soared 684% year over year to $399 million. The company has also secured access to more than 4 gigawatts of power for its data center expansion. However, much of that future capacity still needs to be built and brought into operation. Nebius' commercial pipeline generation was about 3.5 times the previous quarter's level, and the company has signed multiple large customer contracts, including a $17.4 billion deal with Microsoft and a $12 billion deal with Meta Platforms.
The Road Ahead
CoreWeave's 56% adjusted EBITDA margin looks impressive, but its adjusted operating margin was only 1% after accounting for depreciation and amortization. Its debt-funded expansion also resulted in $536 million of net interest expense, contributing to a $740 million net loss. CoreWeave ended the first quarter of 2026 with $25.1 billion in debt and $10.1 billion in operating lease liabilities. As a result, depreciation, interest payments, and long-term lease obligations currently leave much less of CoreWeave's revenue available to benefit shareholders. Nebius has invested about $2.47 billion in property, equipment, and intangible assets during the first quarter, and while operating cash flow reached $2.3 billion, that figure includes a $3.2 billion increase in deferred revenue. This largely reflects customer payments received before Nebius delivers future services.
Key points
- CoreWeave generated revenue close to $2.1 billion in the first quarter, up 112% year over year.
- Nebius' first-quarter revenue soared 684% year over year to $399 million.
- CoreWeave has a $99.4 billion revenue backlog, but much of that will not become revenue until the company delivers the promised computing capacity.
- Nebius has secured access to more than 4 gigawatts of power for its data center expansion.
- CoreWeave ended the first quarter of 2026 with $25.1 billion in debt and $10.1 billion in operating lease liabilities.
If Nebius can successfully bring new capacity online without excessive debt or dilution, it could deliver better long-term returns for shareholders.
If CoreWeave's debt burden and financing costs continue to weigh on its profitability, it may struggle to deliver shareholder returns.
