Nvidia (NVDA), the largest company by market value, has gained about 7% this year, lagging behind several emerging AI stocks. Notably, CoreWeave (CRWV), Nebius (NBIS), and Applied Digital (APLD) have all outperformed Nvidia, with CoreWeave up over 65% since April and Nebius soaring more than 80% in 2026. Both companies are backed by Nvidia, which indicates strong confidence in their growth potential driven by the increasing demand for AI computing infrastructure.

CoreWeave’s business model focuses on providing GPU computing resources for AI training, while Nebius offers a full-stack cloud computing solution. Wall Street projects Nebius will see a staggering 523% revenue growth in 2026, further solidifying its position as a high-growth investment. Conversely, Applied Digital, which has seen a 37% increase this year, acts as a data center landlord for cloud companies, indicating robust demand for its services.

Investors should consider the higher risk associated with these stocks, as none are currently profitable and are leveraging debt for expansion. While Nvidia remains a safer bet with established profitability, the potential for explosive growth in CoreWeave and Nebius might attract those willing to accept the associated risks.

Source: fool.com