CoreWeave and Nebius are two of the most undervalued stocks in the entire AI infrastructure space (Save this).
Milk Road AI Twitter · Milk Road AI (@MilkRoadAI) · 2026-07-02
Milk Road AI argues CoreWeave and Nebius are undervalued AI infrastructure stocks trading at roughly half the per-gigawatt valuation Meta just validated by announcing its own cloud compute business at $20 billion per gigawatt.
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Topics: ai-infrastructurecloud-computeneocloudstock-analysis
Claims
- Meta's announcement of a cloud compute business priced at $20 billion per gigawatt validates CoreWeave and Nebius at roughly twice their current market valuation of ~$10 billion per gigawatt.
- CoreWeave reported Q1 2026 revenue of $2.08 billion, up 112% year-over-year, with a contracted backlog of $99.4 billion — nearly double its current market cap.
- Nebius grew Q1 2026 revenue 684% year-over-year to $399 million and turned Adjusted EBITDA positive at $129.5 million in a single quarter.
- Meta has committed over $35 billion to CoreWeave across multiple take-or-pay contracts, and Nvidia invested $2 billion and designated CoreWeave the Exemplar Cloud for GB200 NVL72 inference.
- Meta entering cloud compute signals demand shortage rather than oversupply, benefiting existing neocloud providers rather than threatening them.
Key quotes
Meta entering the cloud business is a positive signal about underlying demand and unit economics and not a competitive threat, it validates the pricing power of the entire neocloud category.
CoreWeave and Nebius built this infrastructure before the demand was obvious. Now the world's largest tech platform is chasing the same market and pricing it at twice what the market currently gives these two companies credit for.
Its contracted backlog reached $99.4 billion, up 50% in a single quarter, which management called its strongest bookings quarter ever.