Shares in AI cloud companies CoreWeave (CRWV) and Nebius (NBIS) jumped by roughly 7% and 12%, respectively, on Friday. This followed a price target raise for the former and a key acquisition by the latter.
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New trading tool for AMZN bullsCiti Raises CoreWeave Stock Forecast by 23%
CoreWeave’s rally came after Citi analyst Tyler Radke raised his price target on CRWV by 23%, from $126 to $155, implying about 30% upside in the months ahead. Radke also reaffirmed his Buy rating on CoreWeave, arguing that he sees rising demand for the New Jersey-based company’s offering.
The Citi analyst also noted that he expects continued massive spending by AI hyperscalers to generate more gains for CoreWeave — which last month expanded its deal with Meta (META) in a $21 billion contract. Radke also expects CoreWeave to show at least a 35% to 40% quarter-over-quarter growth in its backlog in its first-quarter 2026 earnings report expected on May 20th.
The analyst’s note comes days after hyperscalers such as Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) delivered earnings beats and stated plans to further double down on spending on their AI infrastructure buildout. Wall Street now sees collective AI capital expenditure rising sharply to top $1 trillion next year.
Nebius Acquires Eigen AI for $643M
Meanwhile, Nebius’ rally came after the Amsterdam-based company ramped up its U.S. expansion by agreeing to acquire Eigen AI, a startup focused on optimizing AI models, in a $643 million deal. Nebius has been partnering with Eigen since at least March and will now work with the startup to strengthen the Nebius Token Factory, its platform for AI inference — that is the process of using AI systems to execute tasks such as responding to user queries.
As part of the deal, both companies will work together to establish “a Nebius engineering and research presence” in the San Francisco Bay Area.
Which Neocloud Stock Is the Better Buy?
TipRanks’ Stock Comparison tool shows that Nebius, based on analysts’ consensus, has the better rating (a Strong Buy) and offers the bigger upside of roughly 9%. This is based on an average price target of $167.70.
