Nvidia (NASDAQ: NVDA) may get a lot of the press in the artificial intelligence (AI) investing world, but there are other stocks out there that are growing quicker than Nvidia that don’t get nearly as much attention as they deserve. Furthermore, Nvidia is also looking out for these companies, and has actually taken a position in them itself. That’s a huge vote of confidence, as Nvidia has several other business units that can deliver a huge return on investment. Yet, it’s choosing to invest in these two.
The stocks outgrowing Nvidia that are also backed by it are Nebius (NASDAQ: NBIS) and CoreWeave (NASDAQ: CRWV). Each of these looks like a strong buy, and I think they have the potential to outperform Nvidia.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Nebius and CoreWeave are easily outgrowing Nvidia
Nebius and CoreWeave are both neocloud companies, which are cloud computing businesses completely focused on providing AI computing. Each deploys Nvidia hardware, which is also why Nvidia is confident in them, because it can see huge orders being placed by these two. Nebius and CoreWeave operate a bit differently. Nebius offers its clients a full-stack computing solution, giving them everything they need to create, train, and run AI models and applications. CoreWeave’s offering is heavily dependent on GPUs (graphics processing units) that are available on demand for increased computing power.
Nebius is the smaller of the two businesses, but has the faster growth rate. In Q1, Nebius posted jaw-dropping revenue growth of 684% from the year-earlier period. That’s just absurdly fast, but it could be just the beginning. Wall Street analysts expect Nebius to deliver 551% revenue growth this year and 224% next year. From 2025 to 2027, Nebius’ revenue is projected to increase from $530 million to $11.2 billion.
That’s an unbelievable…
..
