Investors are closely watching two emerging names in the AI sector, Nebius Group and CoreWeave, as both companies project significant growth throughout 2026. Their stock performances have already shown promise, with CoreWeave’s shares surging 25% and Nebius’s by 17% since the beginning of the year. Despite the impressive gains, some investors may feel they’ve missed the boat; however, analysts suggest that there remains ample room for both stocks to soar even higher, potentially doubling in value by year-end.
Both companies are heavily involved in the construction and operation of data centers specifically tailored for artificial intelligence applications. This strategic focus means they are investing in advanced computing technology, including state-of-the-art semiconductor chips, which can be costly. The business model centers around renting out these high-performance chips to clients, aiming to recover operating costs and generate profits as they replace outdated technology. This approach isn’t entirely novel—it closely aligns with the business models established by successful cloud computing firms—but both CoreWeave and Nebius are adapting it for the current AI-driven landscape.
The demand for their services is evident. Nebius reported an impressive annual run rate of $1.25 billion at the end of 2025, with expectations to escalate to between $7 billion and $9 billion in 2026. This anticipated growth is bolstered by plans to expand their operations from seven active sites at the end of 2025 to nine by the end of 2026.
Similarly, CoreWeave experienced a remarkable year-over-year revenue increase of 134%, amounting to $1.37 billion in Q3 2025. With a substantial revenue backlog of $55.6 billion—expected to be realized in the coming 24 months—CoreWeave also reflects the escalating demand for AI computing resources. Hyperscale operators are increasingly willing to invest heavily to secure access to these capabilities.
Despite their impressive growth trajectories, both companies face challenges in achieving profitability. As they seek to capture a larger share of the burgeoning AI market, they are currently operating at a loss and consuming significant cash reserves. This is typical in industries where rapid expansion is prioritized over short-term profitability. As they continue to build out their infrastructure, both firms expect to shift from the heavy expenses of development and deployment toward relatively lower costs associated with maintaining and upgrading existing systems.
CoreWeave is nearing the threshold of profitability, and achieving this milestone in 2026 could lead to a rapid increase in stock value. On the other hand, the aggressive growth strategy employed by Nebius may make immediate profit margins less critical to investors at this stage. If Nebius can sustain its expansion and demonstrate progress toward profitability, market sentiment is likely to remain positive.
Analysts remain bullish about both companies, anticipating robust demand for cloud computing and AI services throughout 2026. Even if doubling in stock value proves elusive, the potential for significant outperformance compared to market averages appears likely for both Nebius and CoreWeave as they continue to carve out their place in the evolving tech landscape.
