Core Insights - Microsoft has signed a transformative $17.4 billion deal with Nebius, a data center company, marking a significant shift in the AI infrastructure landscape [5][6] - The AI ecosystem is seeing increased interest beyond major tech companies, with Oracle and CoreWeave also gaining attention for their roles in providing cloud-based GPU access [1][2] Industry Dynamics - The demand for GPUs, primarily produced by Nvidia and AMD, is outpacing supply, creating a critical opportunity for companies offering GPU-as-a-service [2][3] - The partnership between Microsoft and Nebius allows Microsoft to secure necessary compute resources without incurring high capital expenditures or risks associated with expanding its own data center capacity [7] Company Positioning - Nebius has positioned itself alongside established players like Oracle and CoreWeave by securing Microsoft as a flagship customer, enhancing its credibility in the AI infrastructure market [10] - Following the announcement of the Microsoft deal, Nebius shares surged approximately 39%, indicating strong market interest and confidence in the company's future [11] Financial Outlook - Prior to the Microsoft agreement, Nebius projected an annual recurring revenue (ARR) of $1.1 billion, but the new deal could increase this to approximately $4.6 billion annually when spread over five years [12] - With a current market cap of $21.3 billion, Nebius trades at an implied forward price-to-sales ratio of 4.6, which appears discounted compared to peers like Oracle and CoreWeave [12] Competitive Landscape - While Nebius shows promise, the competitive landscape is evolving rapidly, and potential customer churn must be considered in future projections [14] - Comparisons with Oracle and CoreWeave are complicated by their larger existing contracts, such as Oracle's $300 billion deal with OpenAI, raising questions about the sustainability of such agreements [15] Investment Consideration - The structural demand for AI infrastructure is expected to create durable growth opportunities, making Nebius an attractive buy-and-hold candidate as the AI narrative continues to develop [16]

BigBear.ai stock has been a huge AI winner over the past year. But the company's falling revenues and lack of profits are big red flags.The S&P 500 has continued to notch new record highs this year, thanks in large part to soaring interest in artificial intelligence (AI) technology, which is fueling massive spending on both hardware and software. But as impressive as the S&P 500's 17% gains over the past year have been, they pale in comparison to AI data analytics company BigBear.ai Holdings' (BBAI 9.63%) 2 ...

Bitcoin is only one block in a broad fintech business.The number of companies adding Bitcoin (BTC -1.09%) to their corporate treasuries has soared this year. Block (XYZ -0.34%) ranks 13th in BitcoinTreasuries' list of public companies that hold the top cryptocurrency. But Block, which started adding Bitcoin to its balance sheet in 2020, differs from other businesses on the list. First, its Bitcoin holdings align with its business operations. Second, unlike companies like Strategy, Block isn't raising money ...

Beth Kindig of the I/O Fund thinks Nvidia will become a $6 trillion stock by next year.Beth Kindig, CEO of the technology research firm I/O Fund, has built a reputation for bold calls in the tech sector. Much like Cathie Wood's long-standing conviction in Tesla, Kindig has consistently expressed unwavering enthusiasm for semiconductor giant Nvidia (NVDA 0.34%).In a recent interview with Bloomberg, Kindig sparked debate after revealing her forecast that Nvidia could reach a $6 trillion market cap by the end ...

Do investors need to be worried about Micron's sell-off today?Micron (MU -3.63%) stock got hit with a valuation retracement in Friday's trading. The company's share price fell 3.6% in the day's trading, and had been off as much as 5.6% earlier in the session. Meanwhile, the S&P 500 (^GSPC 0.49%) gained 0.5% in the session, and the Nasdaq Composite (^IXIC 0.72%) rose 0.7%.Micron stock lost ground today despite gains for the broader market and little in the way of clear-cut, company-specific news. Even with t ...

This nuclear stock was on a tear late this week. Here's why.Shares of Oklo (OKLO 28.83%) flew higher this week, finishing up 63.5%. The jump comes as the S&P 500 (^GSPC 0.49%) and the Nasdaq-100 gained 1.2% and 2.2%.The advanced nuclear reactor developer's stock surged after the U.K. and U.S. announced they will work together to advance nuclear energy technology and slash permitting wait times.U.K. and U.S. partner to boost nuclear energyA memorandum of understanding between the two countries was made publi ...

The current presidential administration continues to boost the case for nuclear energy.Uranium miner and processor Energy Fuels (UUUU 5.64%) had quite a run over the last few days on the stock market. Thanks to a top-down government initiative, investors piled into the stock to leave it with a nearly 25% gain on the week, according to data compiled by S&P Global Market Intelligence.The nuclear optionOn Monday, at the annual conference of the International Atomic Energy Agency (IAEA), U.S. Energy Secretary C ...

Dave & Buster's is having a tough time getting its groove back.Dave & Buster's (PLAY -3.82%) made headlines this week, and not in a good way. The company's stock dropped more than 17% following the release of a disappointing second-quarter earnings report and a cautious tone from new CEO Tarun Lal. Investors were hoping for signs of a rebound or new energy in the business, but what they got instead were signs of deeper problems and a tough road ahead. Based on the current outlook, it's becoming harder to vi ...

The beaten-down solar inverter manufacturer began shipments from its new U.S.-based facility.Shares of SolarEdge Technologies (SEDG 2.13%) rallied 22.4% this week, according to data from S&P Global Market Intelligence.SolarEdge, like most solar stocks, has had a horrible few years, ever since interest rates shot up after the pandemic, followed by the Trump administration cutting incentives for U.S. residential solar purchases earlier this year.However, SolarEdge investors received some good news this week, ...

Coca-Cola is an excellent stock for the right investor.Coca-Cola (KO 0.09%) is the largest beverage company in the world, with $47 billion in trailing-12-month sales. It makes beverages you know and love, and you might be surprised to hear that the stock is back to lagging the market this year after a strong run for a few months.There might be other surprising things you'd want to know about Coke before you buy the stock. Here are five important things to keep in mind. 1. Revenue is still off the company re ...