CoreWeave and Nebius Group stocks jumped 7% and 8% respectively in overnight trading after Nasdaq announced their inclusion in the Nasdaq-100 index, effective June 22. The two cloud computing providers secured spots alongside AI chip firm Astera Labs, satellite company Rocket Lab Corporation, and chip-testing solutions firm Teradyne. Stocks typically rise following index inclusion because index funds and ETFs tracking the benchmark must purchase shares, boosting demand and trading volume. The Nasdaq-100 comprises the 100 largest non-financial companies listed on the Nasdaq exchange and is heavily weighted toward technology and growth stocks.
AI Boom Drives CoreWeave and Nebius Revenue Growth
CoreWeave and Nebius provide cloud computing capacity to technology companies and have benefited from surging demand for AI infrastructure. CoreWeave is regarded as one of the largest independent providers of on-demand cloud computing capacity for AI workloads, following hyperscalers Amazon, Microsoft, and Alphabet. The company's revenue increased 111% year over year to $2.08 billion in the last quarter. Sales have doubled in all quarters CoreWeave reported after its initial public offering in March last year.
Nebius emerged in 2024 after Russia's Yandex spun off its international assets following the Russia-Ukraine war, refocusing the business on AI infrastructure. The Amsterdam-headquartered company secured a major contract from Microsoft last September and recently acquired startups Eigen AI and Tavily. In March, Nebius announced a $27 billion contract win with Meta Platforms and a $2 billion investment from Nvidia.
Nebius stock gained 342% in the last 12 months. CoreWeave stock dropped 35% but remains more than double its IPO price. The Invesco QQQ Trust Series 1 (QQQ) gained 35% in the past year.
Retail Sentiment Shifts Bullish on CoreWeave Stock
Both tickers trended on Stocktwits late Thursday following the Nasdaq-100 inclusion news. Retail sentiment for CRWV shifted to 'bullish' from 'neutral,' while sentiment for NBIS remained unchanged at 'neutral.' One trader on the CoreWeave stream wrote, "$CRWV there will be forced ETF inflows. Easy $120," forecasting a 26% upside from the stock's closing price on Thursday.
Of the two stocks, analysts appear more bullish on CoreWeave. Twenty-three of 36 analysts rate CRWV 'Buy' or higher, compared to 9 of 16 'Buy' or higher ratings on NBIS stock.
FAQ
What triggered the surge in CoreWeave and Nebius stocks in overnight trading?
Nasdaq announced that CoreWeave and Nebius Group would be included in the Nasdaq-100 index effective June 22. Index funds and ETFs tracking the Nasdaq-100 must purchase shares of newly added companies, boosting demand and trading volume.
How have CoreWeave and Nebius stocks performed over the past year?
Nebius stock gained 342% in the last 12 months. CoreWeave stock dropped 35% but remains more than double its IPO price from March last year. The Invesco QQQ Trust Series 1 (QQQ) gained 35% in the past year.
