William Blair Initiates Coverage on CoreWeave, Nebius With Outperform Ratings Amid AI Boom

William Blair initiated coverage of neocloud providers CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS) with Outperform ratings, arguing both are well-positioned to capitalize on the accelerating buildout of artificial intelligence infrastructure. In separate notes, analyst Jason Ader highlighted the attractive risk/reward profiles for both companies as demand for specialized computing power surges.

CoreWeave's Strategic Position

William Blair identified CoreWeave as a strategic supplier to major hyperscalers and AI labs, with a substantial $130 billion in committed backlog. The firm's second-quarter revenue of $2.58 billion likely surpassed the combined revenue of all other neocloud providers, according to the analyst.

Ader noted that CoreWeave differentiates itself through a proprietary AI-native architecture and software, even as it uses the same Nvidia chips as its rivals. However, the primary debate for investors centers on whether the company's rapid growth can generate attractive returns, given its significant capital spending of approximately $37 billion this year, high debt levels, and deeply negative free cash flow. The analyst pointed to encouraging signs in recent contract economics, which show higher pricing and improving margins on new capacity.

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Nebius's Full-Stack Expansion

For Nebius Group, William Blair highlighted its evolution from renting raw computing power to becoming a full-stack AI cloud platform. This transition has been accompanied by rapid growth, with its annualized revenue run rate increasing from about $1.25 billion in 2025 to roughly $3 billion in the second quarter.

The company has secured long-term commitments from major clients like Microsoft and Meta and has increased its contracted power target to approximately 5 gigawatts. Ader emphasized that Nebius's stronger balance sheet and lower debt compared to peers provide it with greater flexibility to fund its expansion plans.