As artificial intelligence workloads demand massive computing power, choosing between CoreWeave Inc. (CRWV 1.94%) and Nebius Group (NBIS 2.35%) highlights the choice between scale and flexibility.
These companies provide the specialized infrastructure needed to train and run modern AI models. CoreWeave focuses on massive-scale GPU clusters housed in data centers for the world's largest tech firms. Nebius also operates global data centers targeting the needs of AI hyperscalers as well as smaller businesses across a range of industries.
The case for CoreWeave Stock
CoreWeave operates as a cloud provider purpose-built for specialized tech stocks that require massive computing power for artificial intelligence. The company manages 43 data centers across North America and Europe, providing more than 850 megawatts of power to enterprise customers and AI builders. Its strategy relies heavily on large-scale partnerships, particularly with Microsoft, which accounted for approximately 67% of 2025 revenue. Customer concentration like this adds a layer of risk to the business.
In its 2025 fiscal year, revenue reached $5.1 billion, representing a 167.9% growth rate compared to the previous fiscal year. Despite the surge in top-line results, the company reported a net loss of approximately $1.2 billion. This resulted in a negative net margin of 22.7%, a metric that shows what percentage of revenue remains as profit after all expenses are paid. While the net margin improved from the prior year, the business continues to prioritize rapid infrastructure expansion over immediate profitability.
As of the December 2025 balance sheet, the debt-to-equity ratio was 4.5x, meaning total debt is 4.5 times the value of shareholder equity. The current ratio, which measures the ability to pay short-term obligations with current assets, was 0.5x. Free cash flow was negative $7.3 billion for the year. Note that stock-based compensation (SBC) represented roughly 20.6% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Nebius Group
Nebius Group provides data centers housing a unified platform for the full AI lifecycle, ranging from model training to production deployment. Its business strategy serves a diverse set of industries including healthcare, robotics, and financial services across six global regions. Unlike competitors that focus purely on raw compute, Nebius offers specialized software and support to help enterprises integrate AI into their existing workflows. Specific major customers are not disclosed in public filings, but the firm targets a wide range of global AI builders.
For its 2025 fiscal year, revenue grew by roughly 479% to reach approximately $529.8 million. The company achieved a net income of $101.7 million, representing a positive net margin of 19.2%. This positive net margin suggests the company is effectively managing its operating costs even while scaling its international footprint. This transition to profitability is a significant milestone for a firm operating in the capital-intensive cloud infrastructure space.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 1.1x, indicating total debt is roughly equal to shareholder equity. The current ratio stood at 3.1x, which indicates a strong ability to cover short-term debts with current assets. Free cash flow was negative $3.7 billion due to heavy investment in data center assets. Note that stock-based compensation represented roughly 21.6% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparison
CoreWeave faces significant customer concentration risk, as losing a single partner like Microsoft or Meta Platforms would materially harm the business. It also carries supplier dependency risk, relying exclusively on NVIDIA for its GPU hardware, which makes it vulnerable to supply chain disruptions. Additionally, leasing third-party data centers introduces operational risks related to power loss or security breaches that are outside the company's direct control. Rapidly evolving AI regulations also create uncertainty for its long-term infrastructure roadmap.
Nebius Group competes against CoreWeave. Its success depends on adapting to rapidly changing technology requirements and maintaining platform competitiveness as AI models evolve. The company also faces risks related to international expansion, including different regulatory frameworks and the challenge of scaling network performance across multiple continents. Any failure to efficiently enhance its platform could lead to a reduction in demand from its enterprise customer base.
Valuation comparison
The forward P/E, which relies on future earnings estimates, suggests CoreWeave is more attractively priced against the sector, while the P/S ratio shows Nebius trading at a much higher premium.
| Metric | CoreWeave | Nebius Group | Sector Benchmark |
|---|---|---|---|
| Forward P/E | 29.1x | n/a | 38.2x |
| P/S ratio | 10.6x | 89.6x |
Sector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Nebius stock has soared in 2026, reaching a 52-week high of $233.73 on May 14. This has resulted in an elevated share price valuation compared to CoreWeave, as illustrated by its far higher P/S ratio. That would make CoreWeave the more attractive AI infrastructure stock from a valuation perspective, but there are reasons why Nebius is more expensive.
For starters, Nebius operated a profitable business in 2025, hitting net income of $101.7 million compared to CoreWeave’s massive net loss of $1.2 billion, which is an increase over the prior year’s loss of $863 million.
Adding to this is the significant difference in each company’s debt profile. CoreWeave has been using debt to fund its data center expansion. It exited 2025 with over $20 billion in debt on its balance sheet, and continues to accumulate more. On May 18, it added a $3.1 billion loan facility.
Meanwhile, Nebius has done an admirable job managing its debt while it expanded its business. It ended 2025 with about $4 billion in debt. Although Nebius produced lower revenue, it’s growing faster, and its more manageable debt-to-equity ratio and profitability point to a healthier business from a financial perspective. CoreWeave, however, could be a house of cards due to its enormous debt load. As a result, Nebius is the better stock to buy in 2026.