The bull case: why the sell-off may have gone too far
On the numbers alone, the case for both stocks remains almost embarrassingly strong. Consensus has CoreWeave’s revenue rising to $26.47bn in FY2027 from $12.86bn this year, growth of around 106%, while Nebius is expected to jump to $11.98bn from $3.37bn, a rise of roughly 255%, and both have contracted work to back those forecasts up – a revenue backlog of more than $129bn at CoreWeave and over $40bn of long-term contracts at Nebius.
Valuations have also come down to earth with some speed. CoreWeave trades on a trailing EV/EBITDA multiple of 14.6x, hardly the stuff of bubbles for a business forecast to double its revenue, while Nebius’s multiple drops to 6.4x on a forward basis from 191.4x on a trailing one. Mean price targets of $131.41 for CoreWeave and $286.53 for Nebius imply upside of around 183% and 121% respectively – although analysts, as is customary, have been rather slower to cut their targets than the market has been to cut the share prices.
Then there’s the newsflow. Palantir has named Nebius a preferred sovereign AI infrastructure partner, which could open up government revenue, while the October acquisition of Inferize should strengthen its inference offering. CoreWeave, meanwhile, is expanding into Denmark and building out a global AI network backbone reaching the UAE, India, Indonesia, Singapore, Australia, Korea and Japan from Q4.