Nebius Vaults 200% Vs CoreWeave: The AI Trade That Defies Logic?

Core Insights - Nebius Group NV (NBIS) has experienced a 200% stock rally since its low on June 9, contrasting with CoreWeave Inc (CRWV), which has lagged behind despite being a larger and more fundamentally sound player [1] - The valuation gap between Nebius and CoreWeave is significant, with Nebius trading at a price-to-sales ratio of 64.3, over five times higher than CoreWeave's 12.9 [2] - CoreWeave offers superior GPU access, larger data centers, and stronger ties to Nvidia, yet trades at a lower price, indicating that Nebius's high valuation is driven by hype rather than solid fundamentals [3] Market Dynamics - The surge in Nebius's stock highlights a disconnect in the market, where CoreWeave shows steady growth while Nebius's rise is fueled by excitement and retail attention, emphasizing a "story over substance" scenario [4] - CoreWeave is viewed as a more stable investment option, with steady revenues, stronger EBITDA, and a robust market presence, suggesting it is undervalued compared to its fundamentals [5] - The enthusiasm in the AI sector remains strong, but the contrast between Nebius and CoreWeave illustrates a divide between hype-driven growth and real scale and margins [6]