2 Reasons To Buy Nebius And 1 To Sell CoreWeave

The Techie
1.87K Followers
(12min)

Summary

  • CoreWeave and Nebius are two of the hottest AI GPU rental stocks this year; I think one will perform much better than the other in the near term.
  • Nebius is slower to grow but has the advantage of timing in delivery and multiple revenue sources, while CoreWeave's revenue is surging but faces higher risk post-run up.
  • CoreWeave is also more linked to Nvidia, so if the latter reports earnings and drops tomorrow, then I'm expecting CoreWeave to follow.
  • I recommend waiting for a pullback in CoreWeave after it ran up 180% over 1 month; Nebius is attractive under $35, with more near-term upside expected.

Wide shot luchador trying to take down opponent during lucha libre match

Thomas Barwick/DigitalVision via Getty Images

Investment Thesis

I last wrote on Nebius Group N.V. (NASDAQ:NBIS) around 20 days ago. If you remember, that's back when President Trump was preparing to relax several Biden-era restrictions on semiconductor exports. On top of

This article was written by

1.87K Followers
I’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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