Strategic partnerships, expanding capacity, and Nvidia backing highlight growing momentum in the neocloud sector
Investor confidence is increasing in AI infrastructure companies CoreWeave (CRWV) and Nebius (NBIS), according to Paul Meeks, Head of Technology Research at Freedom Capital Markets, as both firms continue to expand their roles in the rapidly growing artificial intelligence computing ecosystem.
CoreWeave (CRWV) remains a key player in the “neocloud” market, providing specialized infrastructure for AI workloads. Meeks notes that the company expects to achieve adjusted EBIT margins exceeding 20% on many of its contracts and facilities, potentially as early as the third month of a 60-month agreement. While these contribution margins exclude corporate overhead, the reporting method is similar to how major cloud providers like Amazon Web Services present certain financial metrics.
The company is also expected to experience significant revenue growth. CoreWeave generated roughly $5 billion in revenue in 2025, but contracts signed for new capacity are projected to produce as much as $28 billion in revenue within the next two years. A key factor in reaching that target will be its rapid expansion of computing power. CoreWeave ended 2025 with 850 megawatts (MW) of active power and aims to roughly double that capacity by the end of 2026.
Meanwhile, Nebius (NBIS) is gaining attention after securing a $2 billion investment from Nvidia, designed to support the development of 5 gigawatts (GW) of computing capacity by 2030. The announcement sparked strong market enthusiasm, with Nebius shares jumping 16% following the news. Nvidia’s backing is seen as a powerful endorsement of the company’s long-term strategy in the AI infrastructure space.
Although CoreWeave is further along in its expansion and operating at a larger scale, analysts view Nvidia’s investment as particularly meaningful for Nebius as it accelerates its growth trajectory. Meeks maintains a positive outlook on both companies, recommending CoreWeave and Nebius as well as Applied Digital, which provides colocation services supporting AI infrastructure development.
As demand for AI computing power continues to surge, companies building the underlying infrastructure appear increasingly well positioned to benefit.
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