CoreWeave and Nebius emerge as hypergrowth AI stocks, with Nebius posting 684% year-over-year revenue growth in Q1

CoreWeave posted 112% year-over-year revenue growth in its most recent quarter, reaching $2.1 billion in quarterly revenue, while Nebius achieved 684% year-over-year growth in Q1, reaching $399 million. Nebius plans to expand its annual run rate from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026 through additional data centers.

Both companies operate as neocloud providers (AI-focused cloud computing platforms that let clients set up, train, and run AI models in an optimized manner). Major clients including Meta Platforms and Microsoft partner with both companies despite operating their own data centers, prioritizing computing power availability and flexibility over ownership.

Both companies fund data center expansion using debt or share issuance rather than a core business, making them riskier than established cloud computing providers. CoreWeave has a nearly $100 billion revenue backlog, with about a third expected to be realized over the next two years.