Nebius Explodes 16% Higher on NVIDIA Stake Stunner; CoreWeave Surges 8%, Oracle Adds 5% as AI Cloud Plays Pay Off

David MoadelTue, July 21, 2026 at 6:53 PM UTC

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NVIDIA's 9.3% stake disclosure sent Nebius (NBIS) stock surging 16% and pulled CoreWeave (CRWV) stock up 8% on a sympathy bid.

Mizuho's $320 Oracle (ORCL) stock price target implies 164% upside, yet credit default swaps just hit their highest level since 2008, flagging serious bond-market stress.

The First Trust Cloud Computing ETF (SKYY) offers diversified AI cloud exposure, sidestepping single-stock risk from Nebius's 82x P/E or CoreWeave's unprofitable balance sheet.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Nebius Group's (NASDAQ:NBIS) stock is catapulting 16% higher Tuesday to $212 after NVIDIA (NASDAQ:NVDA) disclosed a 9.3% beneficial ownership stake in the AI cloud specialist. The move extends Nebius stock's run to 155% year to date (YTD), a pace that has Wall Street debating whether the valuation has outrun the fundamentals.

CoreWeave (NASDAQ:CRWV) stock is following Nebius higher, up 8% to $79 versus a milder 10% YTD gain. Meanwhile, Oracle (NYSE:ORCL) stock is climbing 5% to $127, though Oracle shares remain down 35% YTD even after today's bounce.

NVIDIA's Stake Filing Ignites the Rally

NVIDIA disclosed in a Schedule 13G filing that it beneficially owns 22,256,412 Class A shares of Nebius stock, or 9.3% of the class. Most of that stake comes from a pre-funded warrant tied to a $2 billion private placement Nebius completed in March, with the rest held outright.

Contractual restrictions bar NVIDIA from exercising the warrant or selling the underlying shares before September 11, and NVIDIA's use of a 13G rather than a 13D signals it isn't seeking control of Nebius. Nebius stock's trailing 12-month (TTM) P/E ratio of 82.36x, along with a roughly $46 billion market value, shows just how much the company's assumed growth is already priced in.

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CoreWeave Catches a Sympathy Bid

CoreWeave stock doesn't have an obvious company-specific catalyst behind today's 8% pop to $79. The move looks more like a sympathy trade off Nebius's headline news, layered on top of the NASDAQ 100's 1.9% advance today. That leaves CoreWeave stock's 10% YTD gain lagging Nebius stock's 155% climb by a wide margin, especially since CoreWeave carries no TTM P/E ratio while it remains unprofitable on a trailing twelve-month basis.

Traders adding CoreWeave stock here are largely betting on momentum continuing rather than on any fresh, company-specific data point. That makes CoreWeave's move today more fragile than Nebius stock's catalyst-driven surge, even though both stocks are moving in the same direction.

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Oracle's Bulls and Bears Square Off

Mizuho reiterated its Outperform rating and kept a $320 price target on Oracle stock, implying 164% upside from Monday's close. The brokerage noted Oracle stock trades at just 14x projected 2027 non-GAAP earnings, a discount to peers, while Oracle stock's TTM P/E ratio of 21.74x looks comparatively reasonable next to Nebius stock's 82.36x multiple.

On the other hand, Oracle's credit market signals point to rising unease. The cost of five-year credit default swaps on Oracle's debt climbed to 2.03 percentage points this week, the highest level since records began in 2008. S&P Global Ratings recently cut Oracle to BBB-, just one notch above junk status, and Moody's Ratings holds Oracle at Baa2 with a negative outlook.

A Diversified Play, and the Next Catalysts to Watch

For investors who don't want to pick a single winner among Nebius, CoreWeave, and Oracle stock, they may choose to get exposure via a cloud-focused ETF. In that vein, the First Trust Cloud Computing ETF (NASDAQ:SKYY) offers diversified exposure to the AI cloud theme. The ETF isn't immune to sector risk, though, since its holdings stay concentrated in cloud and data-infrastructure names rather than spread across unrelated industries.

Nebius stock appears to be the most speculative of the trio given its rich multiple and reliance on NVIDIA's stamp of approval, while CoreWeave's sympathy rally could prove fragile without a catalyst of its own. Oracle stock's comparatively modest TTM P/E ratio of 21.74x may make it the best value of the three, provided the widening credit spreads don't point to deeper trouble ahead.

Considering how differently these three stocks are priced for risk, investors might choose to keep their position sizes modest across the group, especially in the richer-multiple names. Investors can watch for whether Oracle's September 9 earnings report shows capacity monetization catching up with the AI-spending worries pressuring Oracle's bonds, and whether Nebius stock holds above $210 throughout the week.

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Source: “AOL Money”