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Neocloud computing companies CoreWeave (CRWV) and Nebius Group N.V. (NBIS) were initiated with Outperform ratings and respective price targets of $100 and $250 at investment firm Baird on Wednesday.
“CoreWeave is a pioneer and leader in the purpose-built AI infrastructure market,” Baird analyst Rob Oliver wrote in a note regarding CoreWeave. “Our bullish thesis: 1) AI build-out in hyper-growth, 2) ability to execute on capacity conversion (already >1GW of active power), 3) differentiated tech stack with strong NVDA relationship. Current market concerns on supply side of build (powered shells, components, political opposition) underscore the importance of execution at a time when demand far outpaces supply. CRWV's experience is an advantage.”
In a separate note, Oliver expressed similar thoughts about Nebius.
“As AI workloads transition from training to inference, Nebius has positioned itself as a full-stack provider, with strong software-attach,” Oliver wrote. “Our bullish thesis is based upon: 1) strong full-stack offering well positioned for inference, 2) diversifying customer base, 3) highest growth in the sector, and 4) veteran management team and employee base (Yandex carve-out). In a rapidly moving space, NBIS is acting decisively to strengthen its stack though best-in-class acquisitions.”
Shares of both CoreWeave and Nebius were modestly lower in early trading on Wednesday.
