Key Takeaways
- On June 22, CoreWeave (CRWV) and Nebius Group (NBIS) will be added to the Nasdaq‑100, joining Astera Labs, Rocket Lab Corp., and Teradyne; Charter Communications, Cognizant, Insmed, Verisk Analytics, and Zscaler are being removed.
- Index inclusion typically triggers forced buying by index‑tracking funds and ETFs, lifting demand and trading volume for the newly added stocks.
- Retail sentiment on Stocktwits turned bullish for CRWV (from neutral) while NBIS sentiment stayed neutral; traders cited expected ETF inflows as a catalyst for upside.
- CoreWeave and Nebius are fast‑growing independent cloud‑infrastructure providers that have benefited from the AI boom, supplying GPU‑heavy compute power to hyperscalers and AI developers.
- CoreWeave reported 111% year‑over‑year revenue growth to $2.08 billion in its latest quarter, with sales doubling each quarter since its March 2023 IPO; Nebius posted a 342% 12‑month stock gain after securing a $27 billion Meta contract and a $2 billion Nvidia investment.
- Analysts are more optimistic about CoreWeave: 23 of 36 rate it “Buy” or higher, versus 9 of 16 for Nebius.
- Despite the positive news, CoreWeave’s share price is still down 35% from its recent high but remains above double its IPO level; Nebius trades near its 12‑month peak.
Summary
The Nasdaq‑100’s semi‑annual rebalancing will bring two AI‑focused cloud companies—CoreWeave (CRWV) and Nebius Group (NBIS)—into the index on June 22. They will be joined by Astera Labs (AI chips), Rocket Lab Corporation (satellite launch services), and Teradyne (chip‑testing solutions). Conversely, Charter Communications, Cognizant, Insmed Incorporated, Verisk Analytics, and Zscaler will be dropped from the benchmark.
Historically, stocks that gain entry to a major index experience a short‑term price lift because index‑tracking mutual funds and exchange‑traded funds must purchase the newly added shares to maintain replication. This forced buying raises demand, boosts trading volume, and often fuels a rally that can persist for several weeks as the market digests the new composition.
Retail investors reacted quickly on Stocktwits. The sentiment gauge for CRWV shifted from “neutral” to “bullish,” reflecting expectations that ETF inflows will drive the stock higher. One trader summed up the view, forecasting an easy $120 price target—about a 26% upside from Thursday’s close. NBIS’s sentiment remained neutral, indicating a more cautious retail outlook despite the same index‑addition catalyst.
Both firms have ridden the wave of generative AI demand. CoreWeave positions itself as one of the largest independent providers of on‑demand GPU cloud capacity, trailing only the hyperscalers Amazon Web Services, Microsoft Azure, and Google Cloud. Its latest quarterly results showed revenue of $2.08 billion, a 111% increase year over year, with sales having doubled in every quarter since its March 2023 IPO. The rapid growth reflects a surge in AI training and inference workloads that require massive parallel compute power.
Nebius, headquartered in Amsterdam, emerged in 2024 after Yandex spun off its international assets amid the Russia‑Ukraine conflict, refocusing the business exclusively on AI infrastructure. Since landing a major Microsoft contract last September, Nebius has pursued an aggressive expansion path, acquiring AI startups Eigen AI and Tavily. In March the company announced a landmark $27 billion agreement with Meta Platforms to supply AI‑optimized compute, followed by a $2 billion strategic investment from Nvidia. These deals have propelled Nebius’s stock up 342% over the past year, underscoring investor confidence in its AI‑centric growth story.
Analyst coverage tilts favorably toward CoreWeave. Of the 36 analysts tracking CRWV, 23 rate the stock a “Buy” or higher, compared with only 9 of 16 analysts giving NBIS a similar rating. The disparity likely stems from CoreWeave’s longer operating history, larger revenue base, and clearer path to profitability, whereas Nebius is still in an aggressive investment phase, balancing high‑growth contracts with substantial capital expenditures.
Despite the optimistic backdrop, CoreWeave’s share price has retreated roughly 35% from its recent peak, though it remains more than double its IPO level. Nebius, meanwhile, trades close to its 12‑month high, reflecting the market’s enthusiasm for its recent mega‑contracts and Nvidia backing. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq‑100, has risen about 35% over the same period, indicating that the broader index’s strength is providing a tailwind for the newcomers.
In summary, the June 22 Nasdaq‑100 inclusion of CoreWeave and Nebius underscores the growing importance of specialized AI cloud providers in the tech ecosystem. Index‑driven buying should deliver a near‑term boost to both stocks, with CoreWeave attracting more bullish analyst sentiment and Nebius drawing strength from its massive AI‑infrastructure wins and strategic retail optimism. Investors will watch how the forced ETF flows translate into sustained price appreciation versus the underlying fundamentals of each company’s AI‑focused cloud business.