Better AI Data Center Stock: Nebius vs. CoreWeave
Which of these neocloud stocks is a better buy right now?
Nebius (NASDAQ: NBIS) and CoreWeave (NASDAQ: CRWV) have both transformed themselves into AI-focused cloud infrastructure providers, seizing the opportunities presented by the AI boom. Initially known as Yandex, Nebius was a major player in Russia's search engine and associated cloud services. However, due to sanctions, it had to divest its Russian assets, move to the Netherlands, and reconfigure its data centers to process AI tasks remotely.
On the other hand, CoreWeave was formerly an Ethereum miner. After the cryptocurrency market crash in 2018, it repurposed its GPUs to handle AI tasks instead. Both companies invested heavily in Nvidia's (NASDAQ: NVDA) GPUs to facilitate their transitions. Nvidia has also shown confidence in these "neocloud" service providers by investing in both CoreWeave and Nebius.
In the current volatile market, it remains uncertain which stock will yield higher long-term gains. Upon stabilizing conditions, which of these neocloud stocks will prove to be the better investment?
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
