AI Cloud Stocks Nebius and CoreWeave Plunge on Meta Competition Fears

Shares of artificial intelligence infrastructure providers Nebius (NBIS) and CoreWeave (CRWV) have experienced a sharp downturn, driven by investor concerns over new competition from Meta Platforms' plan to monetize its excess computing power.

Steep Declines Hit AI Infrastructure Sector

Over the past month, Nebius stock has fallen 42.1%, while CoreWeave has declined 35.1%, according to market data from July 29. The primary catalyst for the sell-off is Meta's announced entry into the AI compute rental market, a move that directly challenges the core business model of specialized GPU cloud providers. CoreWeave also faces an additional competitive threat from SpaceX, which is reportedly entering the same market.

CoreWeave's stock is now trading just 2.4% above its 52-week low of $60.55. While Nebius remains up 199.9% over the past year, its recent performance marks a significant reversal from its 52-week high of $299.86.

Company-Specific Headwinds Add Pressure

Beyond the macro-level competition, both firms are grappling with internal headwinds that have amplified investor concerns.

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• Nebius (NBIS): The company raised its 2026 capital expenditure guidance to between $20 billion and $25 billion, with meaningful revenue from the new capacity not expected until the first half of 2027. Additionally, company insiders, including the CEO and CTO, have sold more than $140 million in stock over the past 90 days.
• CoreWeave (CRWV): The company has a negative earnings per share forecast of -$3.81 for fiscal year 2026 and has increased its own capex outlook to $34 billion. A recent $4.49 million share sale by its Chief Development Officer on July 13 has added to the negative sentiment.

Analysts Weigh In on Long-Term Outlook

Despite the recent volatility, some analysts maintain a positive long-term outlook, pointing to underlying strengths and strategic partnerships.

Nebius has received a significant vote of confidence from NVIDIA, which disclosed a 9.3% passive stake in the company. Citing this and other factors, Northland recently raised its price target on NBIS to $410. For CoreWeave, Bank of America is holding firm with a 'Buy' rating and a $140 price target, highlighting the company's 130% revenue growth over the last twelve months. A recent $3.5 billion, 15-year data center deal with Galaxy Digital also signals continued long-term demand for its services.