Shares of Wall Street’s favorite AI data center cloud capacity providers, CoreWeave (CRWV), IREN Limited (IREN), and Nebius (NBIS) have started to recover from their recent post-earnings fall. Analysts believe that Nebius is currently the best buy of the three.
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In recent days, shares of Sydney-based IREN and Amsterdam-based Nebius, alongside their American counterpart CoreWeave (CRWV), all experienced significant drops after releasing their latest quarterly earnings results. While CRWV stock, which has plunged almost 31% over the last five days, has only slightly exited the red zone, IREN and Nebius have rebounded more sharply following the recent rut.
As of 5:49 a.m. EST on Wednesday:
- CoreWeave (CRWV) rose 1.20% to $75.80, closing the gap of about half a percentage point from the previous day.
- Nebius (NBIS) rose over 1% to $91.72, adding to a gain of over 5% from the previous day.
- IREN (IREN) also gained over 2% to reach $49.68, adding to a jump of over 3% from Tuesday trading.
What Is Wall Street Saying?
Wall Street’s approach to CoreWeave remains split. While Compass Point analyst Michael Donovan believes that CRWV stock is worth buying based on the long-term contracts the company has secured, J.P. Morgan analyst Mark Murphy does not share the sentiment. Murphy highlighted project delay issues that shifted the neocloud company’s revenue into subsequent quarters.
On Nebius, Goldman Sachs analyst Alexander Duval has reaffirmed his Buy rating on NBIS stock, with a price target of $155 per share that implies over 71% upside. Duval continues to see Nebius as one of the best ways to benefit from the boom in AI infrastructure investments.
Defending his position, the four-star analyst pointed at Nebius’s robust client demands and new contracts with hyperscalers — tech firms that run large-scale AI workloads. He believes that these factors will serve as a key anchor for the Amsterdam-based company’s long-term growth potential.
Similarly, Bernstein analyst Gautam Chhugani remains upbeat about IREN and has maintained his Outperform (Buy). Chhugani raised his price target to $125 per share, representing more than 155% upside.
The five-star analyst contended that IREN — unlike its rivals such as CoreWeave — does not rely on co-location deals but operates its own AI cloud vertical. This means that IREN is building out its own full infrastructure, from power, cooling, servers, and cloud capacity.
The Bernstein analyst added that IREN is “guiding for an exponential scale-up” in its AI cloud business to generate $500 million in annual recurring revenue.
Which Is the Best Neocloud Stock to Buy?
The TipRanks Stock Comparison tool shows that CoreWeave currently offers the biggest upside of the three, followed by Nebius and then IREN. However, only NBIS currently enjoys a Strong Buy consensus rating from Wall Street — as the image below shows.
