Jim Cramer prefers CoreWeave over Nebius Group

Jim Cramer suggests buying CoreWeave over Nebius, stating that Nebius is a second-rate option. Nebius is a technology company focused on AI industry infrastructure, including GPU-based cloud platforms and autonomous driving technology. Cramer advises investors to buy CoreWeave instead, citing his chief scientist's opinion.

In the burgeoning AI infrastructure sector, two companies have emerged as prominent players: CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS). Jim Cramer, a well-known financial commentator, recently advised investors to favor CoreWeave over Nebius, citing his chief scientist's opinion. This article delves into the strategic positions and financial outlooks of both companies to help investors make informed decisions.

CoreWeave: A Fortified Market Leader

CoreWeave operates as a pure-play AI cloud provider, offering specialized computing infrastructure designed for massive AI workloads. The company's strategy centers around dominating the U.S. market by securing its supply chain. CoreWeave's acquisition of Core Scientific, a $9 billion all-stock deal, is a pivotal move. This acquisition provides CoreWeave with 1.3 gigawatts of power infrastructure, ensuring a stable and controlled supply chain [1].

The financial benefits of this acquisition are substantial. The deal is expected to eliminate more than $10 billion in future lease obligations and generate approximately $500 million in annual cost savings. These savings can directly boost future profits, and since the deal is structured entirely with stock, CoreWeave gains this incredible asset without adding any debt to its balance sheet [1].

CoreWeave's impressive performance since its March 2025 IPO reflects the market’s confidence in its strategy. The company's massive contracts with industry titans further solidify its operational control, which supports a $25.9 billion revenue backlog and offers outstanding visibility into future earnings [1].

Nebius Group: Aggressive Global Expansion

Nebius Group, on the other hand, is focused on a hyper-growth strategy built on speed and aggressive international expansion. The company posted a stunning 385% year-over-year revenue increase in its latest quarterly report, driven by a $2 billion capital investment plan for 2025 [2].

This capital is being deployed to rapidly build new data centers across Europe, the United States, and the Middle East. Nebius's goal is to become profitable on an operational basis, as measured by adjusted EBITDA, in the second half of 2025. Its strong balance sheet, with a current ratio of 18.0, demonstrates ample cash to fund this global race [2].

Nebius's strategy also includes securing first-mover advantages. It became the first cloud provider to offer NVIDIA’s latest Blackwell superchips in Europe, giving it a powerful edge in attracting the continent's most valuable clients [2].

Jim Cramer's Advice: CoreWeave Over Nebius

Jim Cramer's advice to buy CoreWeave over Nebius is based on his chief scientist's opinion. CoreWeave's focus on vertical integration and securing its supply chain is seen as a more stable and sustainable strategy compared to Nebius's aggressive global expansion. CoreWeave's operational control and fortified U.S. position are considered key competitive advantages.

Conclusion

Both CoreWeave and Nebius Group represent compelling opportunities for investors looking to participate in the foundational build-out of the AI economy. CoreWeave's strategy of securing its supply chain and operational control makes it a strong contender, while Nebius's hyper-growth strategy and first-mover advantages in international markets present a different but equally attractive investment thesis.

Investors should carefully consider their risk tolerance and investment horizon before making any decisions. While Jim Cramer's advice favors CoreWeave, it is essential to conduct thorough research and consider the unique strengths and risks associated with each company.

References

[1] The Globe and Mail. (2025). AI Infrastructure Is Exploding—Don’t Overlook CoreWeave & Nebius. Retrieved from https://www.theglobeandmail.com/investing/markets/stocks/CRWV-Q/pressreleases/33498176/ai-infrastructure-is-exploding-dont-overlook-coreweave-nebius/

[2] AInvest. (2025). Nebius Group (NBIS): A Mispriced AI Infrastructure Play with Risk-Adjusted Opportunity. Retrieved from https://www.ainvest.com/news/nebius-group-nbis-mispriced-ai-infrastructure-play-risk-adjusted-opportunity-tech-frontier-2507/

[3] MarketBeat. (2025). AI Infrastructure Is Exploding—Don’t Overlook CoreWeave and Nebius. Retrieved from https://www.marketbeat.com/stock-ideas/ai-infrastructure-is-explodingdont-overlook-coreweave-and-nebius/