Cramer Recommends CoreWeave Over Nebius for AI Investments

NEW YORK, NY — In a recent airing of CNBC’s “Mad Money,” host Jim Cramer advised investors to favor CoreWeave over Nebius Group N.V. in the expanding artificial intelligence sector. Cramer emphasized that Nebius, while notable, is not as promising, describing it as a ‘second-rate CoreWeave.’

Nebius (NASDAQ: NBIS) is a tech company focused on providing infrastructure for the AI industry, including GPU-based cloud platforms and tools for autonomous driving. This month, Cramer highlighted Nebius’ hyper-growth strategy, noting its impressive 385% year-over-year revenue increase and $2 billion investment plan for 2025. However, he remains skeptical about its reliability as an investment.

During the show, Cramer stated, “Okay, Nebius, I checked them out when I was at GTC… at the big NVIDIA trade show. And I came back and I said, CoreWeave, just buy CoreWeave. Don’t deviate, buy CoreWeave.” This endorsement follows a strong performance from CoreWeave, which services massive AI workloads and is viewed as a market leader.

CoreWeave’s recent acquisition of Core Scientific is a critical move to enhance its supply chain and operational efficiency. This deal eliminates over $10 billion in future lease obligations and is projected to yield about $500 million in annual cost savings. Market confidence in CoreWeave is reflected in its substantial contracts with major industry players.

Cramer also acknowledged insights from his chief scientist, Ben Stoto, who has consistently favored CoreWeave over Nebius. Stoto argued that while Nebius has potential, it cannot compete with CoreWeave’s operational strategies and market position.

As investors look toward the AI infrastructure boom, they are challenged with choosing between fast-growth companies like Nebius and steadier investments like CoreWeave. While Nebius showcases rapid revenue growth, Cramer’s perspective suggests those seeking stability should focus on CoreWeave.

The developments in AI investment strategies are evolving rapidly, and for many, the choice will hinge on their risk tolerance and belief in long-term growth in the sector.

Jim Cramer concluded, “We’re not going to own either [Company], though. CoreWeave has moved up too much, and Nebius, we are not going to trust.”