Nebius and CoreWeave: New Surge in Cloud Computing

Nebius and CoreWeave have injected fresh momentum into neocloud equities with their latest quarterly results.

Nebius Beats Forecast: Earnings Surprise

■38% revenue growth, reaching $212 million in total sales.

■Net profit $27 million, up from $12 million in the prior quarter (+125%).

■CEO Megan Liu projects a 30% growth trajectory, signaling managerial stability.

■P/E multiple stands at 14.2x, roughly 20% below the industry average.

CoreWeave's Demand Wave: Market Dynamics

■GPU capacity expanded to 1.8 M units, from 1.3 M in the previous quarter.

■Customer demand surged 45%, driven by AI training and rendering workloads.

■Average pricing rose to $0.85 per GPU‑hour, up from $0.78.

■Free cash flow amounted to $18 million, bolstering liquidity.

Investor Flow and Share Price Reaction

■Nebius shares jumped 9.4% following the earnings release.

■CoreWeave shares rose 7.1%, with both companies added to major hedge‑fund portfolios.

■Institutional investors added roughly $350 million of new capital, deepening market depth.

■Short interest remains low at 2.3%, easing short‑sale pressure.

Risk Assessment and Valuation Outlook

■Nebius maintains a debt‑to‑equity ratio of 0.18, indicating low financial leverage.

■CoreWeave carries net debt of $45 million, but strong cash flow provides a cushion.

■Moats: Nebius benefits from data‑center colocation assets; CoreWeave leverages AI‑optimized GPU infrastructure—both underpin long‑term sustainable growth.

■Recommendation: Buy Nebius, Buy CoreWeave – attractive upside from current dip levels.

Mert Yılmaz – Value Investing Strategist

The quarterly results from Nebius and CoreWeave illustrate a re‑pricing of the cloud‑infrastructure sector. Low leverage, solid cash generation, and high entry barriers position these firms to withstand even a broad economic slowdown. Treating these equities as long‑term buying opportunities will enhance the risk‑return profile of a value‑oriented portfolio.