Shares of CoreWeave (CRWV), IREN Limited (IREN), and Nebius (NBIS)—leading players in AI data center cloud capacity—are on a recovery path following a dip after their recent earnings reports. Analysts have noted that Nebius stands out as the most attractive investment option among the three.
In the past week, the stocks of IREN and Nebius, alongside their American counterpart CoreWeave, faced substantial declines after announcing their quarterly results. CoreWeave saw a staggering drop of nearly 31% in just five days, but has shown modest signs of recovery, while IREN and Nebius rebounded more notably after hitting a low.
As of early Wednesday morning, CoreWeave shares increased by 1.20%, reaching $75.80, slightly recovering from prior losses. Nebius also experienced a gain, rising over 1% to $91.72, adding to a prior increase of more than 5%. IREN recorded a notable rise of over 2% to $49.68, building on a 3% jump from Tuesday.
The outlook for CoreWeave remains varied among analysts. Michael Donovan from Compass Point advocates for buying CRWV based on its long-term contracts, while J.P. Morgan’s Mark Murphy raises concerns about project delays that could impact revenue timing.
Conversely, Goldman Sachs analyst Alexander Duval has reiterated a Buy rating for Nebius, setting a price target of $155 per share, which suggests an upside of over 71%. Duval points to solid client demand and new contracts with large tech companies as critical drivers for Nebius’s anticipated growth in AI infrastructure.
Similarly, Bernstein analyst Gautam Chhugani maintains an optimistic view of IREN, upgrading the price target to $125 per share—a more than 155% upside. Chhugani emphasized that unlike CoreWeave, IREN is establishing its own AI cloud infrastructure, including power and cooling systems, positioning itself for substantial revenue growth.
According to the TipRanks Stock Comparison tool, CoreWeave currently exhibits the most significant potential upside among the three, followed closely by Nebius and IREN. Notably, Nebius holds a Strong Buy consensus rating from Wall Street.
The developments in these AI-focused companies reflect a crucial shift towards the growing demand for cloud capacity and infrastructure, especially as the tech industry continues to embrace AI. As these firms navigate the challenges and opportunities ahead, they represent a dynamic sector worth careful observation for investors looking to capitalize on the AI boom.