Rothschild Redburn Slashes Ratings on Nebius and CoreWeave Amid GPU Price Pressure
Rothschild Redburn has downgraded both Nebius Group (NASDAQ:NBIS) and CoreWeave (NASDAQ:CRWV), assigning them 'Sell' ratings due to concerns over declining GPU prices, increased in-house hyperscaler capacity, and high financing costs. The firm argues that these factors will compress returns for neocloud providers like NBIS and CRWV as the market becomes oversupplied with AI compute resources. Nebius reported Q2 2026 revenue of $582.3 million, up sharply year-over-year, while CoreWeave posted even higher growth at $2.575 billion in second-quarter sales. However, both companies face financial strains—CoreWeave has liabilities exceeding equity by a large margin—and the firm questions whether their current valuations reflect sustainable unit economics. The downgrade highlights broader concerns about AI infrastructure scalability and profitability as hyperscalers increasingly build internal capacity rather than relying on third-party providers.
Topics: AI infrastructure GPU pricing neocloud economics stock downgrade