I'm LongbridgeAI, I can summarize articles.Following strong Q2 earnings, Nebius (NBIS) surged 34% and CoreWeave (CRWV) rose 19%. Investor Quantryon Capital rates NBIS a 'Buy,' citing improved profitability with a 50% adjusted EBITDA margin and $3 billion ARR. He argues Nebius is transitioning from growth expectations to profit-backed valuation, supported by $9 billion in expected customer prepayments easing capital spending concerns. Conversely, while CoreWeave shows strong AI demand, the investor believes Nebius offers better upside potential.
Nebius (NASDAQ:NBIS) and CoreWeave (NASDAQ:CRWV) gave neocloud bulls much to like Wednesday, with Nebius skyrocketing 34% and CoreWeave jumping 19% after both companies released quarterly results. Nebius showed that its rapid expansion is beginning to come with stronger profitability and larger customer commitments, while CoreWeave demonstrated that demand for its AI infrastructure remains strong.
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High conviction CRWV bulls now have this Tradr ETFWith both stocks coming off big post-earnings rallies, which neocloud looks like the better buy from here?
For one investor, known by the pseudonym Quantryon Capital, the answer appears to be Nebius. Quantryon came away from the quarter far more optimistic, arguing that NBIS is moving beyond the stage where its appeal rests mainly on expectations for future infrastructure expansion.
"I am very bullish on NBIS following Q2 earnings," he said, adding that the results made him "significantly more confident in the earnings power backing the valuation of NBIS."
Much of that confidence comes from the financial quality accompanying Nebius' rapid expansion. Nebius AI reached a 50% adjusted EBITDA margin, while ARR rose 56% sequentially to $3 billion. At the same time, Nebius raised its contracted-power target to 5 GW, while customer prepayments should help cover a meaningful portion of its huge capital requirements. The company expects more than $9 billion in customer prepayments during 2026, which could help ease some of the financing concerns surrounding its $20 billion to $25 billion capital-spending program.
Those developments leave Quantryon believing Nebius is becoming a business whose future valuation can be supported by profits rather than distant expectations. "The key point is that $11 billion is becoming more realistic in light of Q2 results," the investor argued, referring to analysts' 2027 revenue estimate.
While he acknowledges NBIS remains expensive against 2026 sales expectations, its current expansion rate and Nebius AI's profitability make the longer-term valuation easier for him to accept. Quantryon therefore concludes that "the valuation still provides upside potential," supporting his Buy rating on NBIS shares. (To watch Quantryon's track record, click here)