What Nick Stock Cafe said in this video:
- CRWVneutralThe host thinks CoreWeave still has a chance of a 10x rise because computing power is scarce, but he personally would not invest due to extreme leverage, short-term liabilities far exceeding liquid assets, unprofitable customers, and the risk that customers may change how they obtain compute; debt risk is severe.Source
- AI Capexneutrallong-termThe host notes that while the small-cloud compute leasing industry benefits from demand for computing power, companies are heavily leveraged with massive capex, slow cash flow recovery, and many may fail to recoup investments before 2030, making the industry's debt risk relatively high.Source
- NBISneutralIf forced to choose one in the small-cloud compute leasing space, the host would pick Nebius over CoreWeave because Nebius has much lighter debt, current assets far exceeding current liabilities, more diversified business, and a more reassuring financial position.Source
- CEGneutralThe host believes the endgame of compute is electricity; while the ways to obtain compute may change, the ways to obtain electricity are unlikely to be replaced in the short term, so if not investing in the small-cloud space, he is more willing to invest in an energy company like CEG.Source