Hypergrowth artificial intelligence (AI) stocks aren’t all that common. Many of the fastest-growing AI companies are still private, and most investors can’t own their shares or trade them freely. However, there are a couple of stocks available right now posting incredible growth numbers that investors should be aware of.
The two hypergrowth AI stocks investors should take a closer look at are Nebius (NASDAQ: NBIS) and CoreWeave (NASDAQ: CRWV). These two operate in similar spaces and are each seeing incredible demand. I think both of these stocks can make for smart portfolio additions, but investors must be aware of the roller-coaster ride they will be taken on when owning this duo, as high growth and risk are a recipe for volatility.
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The neocloud space is seeing huge growth
Both Nebius and CoreWeave are known as neocloud companies. This is similar to the cloud computing space that has been well established over the past decade, but it is AI-focused. By offering a product tailored to AI, clients can easily set up, train, and run AI models in an optimized manner. This is incredibly attractive, and both companies have already captured major clients, like Meta Platforms and Microsoft.
It may be a bit of a headscratcher why companies like Meta and Microsoft want to partner with Nebius and CoreWeave, since they are already building their own data centers. Still, it all boils down to having as much computing power as possible as quickly as possible. Additionally, Meta and Microsoft have spent a ton on data centers, and renting some space instead of owning it gives them some flexibility.
Nvidia (NASDAQ: NVDA) is also a major investor in both companies. Nvidia is a rapidly growing company itself, and if it thought that its own business could do better than these two, it wouldn’t be investing. That’s a vote of confidence for both stocks, and after looking at their growth rates, you can see why Nvidia is investing.
During its most recent quarter, CoreWeave posted an impressive 112% year-over-year revenue growth. That brought its quarterly revenue total up to $2.1 billion, but that’s nothing compared to its backlog. CoreWeave has a nearly $100 billion revenue backlog, showcasing how in-demand its platform is. About a third of that is expected to be realized over the next two years, delivering even more growth for CoreWeave in a short time frame.
If you’re impressed with CoreWeave’s growth, wait until you see Nebius’. In Q1, Nebius posted a stunning 684% year-over-year revenue growth rate, reaching $399 million. Nebius is expanding at a much faster rate than CoreWeave, mainly because of its model’s popularity and its smaller starting point. In 2026, Nebius is adding several more data centers to its portfolio, which will raise its annual run rate from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026. That’s solid growth, and makes it a great stock to buy and hold.
Each of these companies is delivering strong growth, but there is one holdup.
Both companies are using debt to fund the build-out
Unlike the major cloud computing providers, these two don’t have a core business to fund their data center build-outs. Instead, they must take on debt or issue shares to raise capital to fund expansion. That makes these stocks much riskier than other AI names.
You don’t get maximum returns without taking on risk, and that’s exactly what CoreWeave and Nebius investors must understand.
These two stocks are quite promising, but if something goes wrong, they could collapse. However, I’m confident in AI demand, which has proven insatiable, and I think these two will be fantastic stocks to buy and hold for the next decade.
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Keithen Drury has positions in Meta Platforms, Microsoft, Nebius Group, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
2 Hypergrowth AI Stocks to Buy and Hold for the Next Decade was originally published by The Motley Fool
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