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The demand for cloud AI infrastructure has been growing at an incredible pace, resulting in phenomenal growth for Nebius and CoreWeave.
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Both stocks are on the rise and have the potential to keep rising thanks to a trillion-dollar end-market opportunity.
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One of these two names trades at a significantly cheaper valuation than the other.
Nebius Group (NASDAQ: NBIS) and CoreWeave (NASDAQ: CRWV) set the stock market on fire this year, clocking stunning gains of more than 200% as of this writing, thanks to their phenomenal growth.
While Nebius' stock is up 309% so far in 2025, shares of CoreWeave have shot up 233% in a span of just six months since its initial public offering. Importantly, both companies look capable of sustaining their outstanding growth long-term thanks to the booming demand for their dedicated artificial intelligence (AI) cloud infrastructure.
But if you had to choose from one of these two high-flying growth stocks for your portfolio, which one should it be? Let's find out.
Nebius got a massive shot in the arm recently after announcing a five-year contract with Microsoft worth $17.4 billion. The deal, which could go up to $19.4 billion if Microsoft opts to use additional Nebius services, is going to be a game-changer for the company.
That's because Nebius is currently a small company with $156 million in revenue in the first half of 2025. However, that number is growing at an incredible pace, with the top line jumping 545% year over year in the first six months of the year. Analysts project Nebius will end the year with a 390% increase in revenue to $576 million. The Microsoft contract, therefore, is a big deal for Nebius as it has the potential to make Nebius a significantly bigger company in the long run.
What's more, investors can expect Nebius to land more such contracts. Due to a shortage of cloud computing capacity to run AI workloads, companies like Microsoft are sitting on huge backlogs. Even other cloud computing giants such as Alphabet's Google and Amazon saw significant increases in their backlogs thanks to the rapidly growing demand for training and running of AI applications in the cloud.
Nebius is working to bring more data center capacity online, which should eventually allow it to win more business and sustain strong revenue growth levels. Even before Nebius announced the Microsoft contract, it was on track to secure more than 1 gigawatt (GW) of contracted data center capacity by the end of 2026.