Nvidia (NVDA) just made its preference clear. The company recently disclosed a 9.3% stake in Nebius Group (NBIS), sending the stock up more than 18% in a single day. CoreWeave (CRWV) also rose about 9% alongside it, though that looked more like a sympathy move than news of its own. Both companies rent out Nvidia-powered computing for AI, and both count Nvidia as a backer. If you can only own one, however, Nebius is the clearer choice.
Part of that comes down to momentum. Nebius is growing at a remarkable pace, with first-quarter revenue up nearly 700% from a year earlier. Management expects its revenue run rate to reach $7 billion to $9 billion by the end of the year. Nebius is also starting to generate positive cash flow, with margins improving quickly. This week’s Nvidia investment news adds a fresh vote of confidence on top of that.