Rothschild Puts Red Flag on Nebius and CoreWeave, Warns of AI Infrastructure Funding Limits

Rothschild & Co. Redburn has initiated coverage of several companies in the AI and crypto space, issuing 'Sell' ratings for neoclouds Nebius (NBIS) and CoreWeave (CRWV), while assigning 'Neutral' ratings to Bitcoin miners pivoting into AI infrastructure.

The firm believes that credit markets are pricing risks that AI equities largely ignore, and that hyperscalers have more economic leverage once off-balance-sheet commitments are included. This could limit their ability to fund the next phase of the massive AI infrastructure buildout.

Rothschild stated that Nvidia-backed Nebius carries the greatest downside risk, with CoreWeave facing less but still significant risk. The firm also noted that companies with direct exposure to the neocloud model face greater valuation concerns.