This CoreWeave Rival Could Double in 2026

Core Insights - Nebius is projected to experience significant growth by 2026, with expectations of revenue reaching between $7 billion and $9 billion, up from an annual run rate of $551 million in Q3 2023, which represents a year-over-year growth of 355% [4] - The company has increased its contract power from 1 gigawatt to 2.5 gigawatts to meet the rising demand for AI computing power [4] - Nebius, spun out from Yandex, has been successful in the AI-focused cloud computing sector and is expected to follow a growth trajectory similar to that of CoreWeave [3][7] Financial Metrics - Nebius currently trades at 64 times sales, which may seem high, but the forward sales metric is more appropriate given the anticipated growth [5] - The market capitalization of Nebius is approximately $25 billion, with a current stock price of $0.52 [11] - The gross margin for Nebius is reported at -1312.43%, indicating a significant loss, which is common for companies in the market-capturing phase [11] Market Context - Both Nebius and CoreWeave are in a rapid expansion phase, focusing on capturing market share rather than immediate profitability [9] - The demand for computing capacity is currently unreal, and profitability for both companies is not expected for a few years [9] - The success of Nebius and CoreWeave will depend on the market's willingness to invest in growth-oriented companies, which could lead to substantial stock price increases if the appetite for risk remains [12]