Why Are CRWV, NBIS Stocks Surging Over 7% In Overnight Trading?

Cloud computing providers CoreWeave and Nebius have emerged as major beneficiaries of the AI boom.

• CRWV and NBIS stocks will join the index on June 22.
• AI chip firm Astera Labs, satellite company Rocket Lab Corporation, and chip-testing solutions firm Teradyne also bagged spots in the Nasdaq-100.
• Stocktwits sentiment for CRWV shifted to ‘bullish’ from ‘neutral.’ 

CoreWeave and Nebius Group stocks were jumping 7% and 8%, respectively, in overnight trading ahead of Friday after Nasdaq announced that the two would be included in the Nasdaq-100 index, effective June 22.

The Nasdaq-100 is a benchmark index comprising the 100 largest non-financial companies listed on the Nasdaq exchange, and is best known for its heavy weighting toward technology and growth stocks.

Stocks typically rise when an index is added because index funds and ETFs that track the index are required to buy the shares, boosting demand and trading volume.

AI chip firm Astera Labs, satellite company Rocket Lab Corporation, and chip-testing solutions firm Teradyne also bagged spots in the Nasdaq-100. Charter Communications, Cognizant, Insmed Incorporated, Verisk Analytics, and Zscaler were dropped.

AI Boom Puts Spotlight On CRWV, NBIS Stocks

CoreWeave and Nebius, which provide cloud computing capacity to technology companies, have emerged as major beneficiaries of the AI boom and the resulting surge in demand for cloud infrastructure powering advanced AI applications.

After hyperscalers such as Amazon, Microsoft, and Alphabet, CoreWeave is widely regarded as one of the largest independent providers of on-demand cloud computing capacity, particularly for AI workloads.

The company’s revenue increased 111% year over year to $2.08 billion in the last quarter. In fact, sales have doubled in all quarters CoreWeave reported after its initial public offering in March last year.

Nebius is part of a group of emerging cloud providers that have attracted investor interest of late. The Amsterdam, Netherlands-headquartered company emerged in 2024 after Russia’s Yandex spun off its international assets following the Russia-Ukraine war, refocusing the business entirely on AI infrastructure.

Nebius has been on an expansion spree since it bagged a major contract from Microsoft last September. The company recently acquired startups Eigen AI and Tavily. In March, Nebius announced a $27 billion contract win with Meta Platforms and a $2 billion investment from Nvidia.

Nebius stock has gained a whopping 342% in the last 12 months. CoreWeave stock has dropped 35% but remains more than double its IPO price. The Invesco QQQ Trust Series 1 (QQQ) gained 35% in the past year.

Retail, Analyst View On CRWV, NBIS

Both tickers were trending on Stocktwits late Thursday, following the Nasdaq-100 inclusion news. The retail sentiment for CRWV shifted to ‘bullish’ from ‘neutral,’ while the sentiment for NBIS remained unchanged at ‘neutral.’

“$CRWV there will be forced ETF inflows. Easy $120,” a trader wrote on the CoreWave stream, forecasting an upside of 26% from the stock’s closing price on Thursday.

Of the two, analysts appear more bullish on CoreWeave stock. Twenty-three of 36 analysts rate it ‘Buy’ or higher on CRWV, compared to 9 of 16 ‘Buy’ or higher ratings on the NBIS stock.

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