Back in early September, I reiterated my buy rating on Nebius Group N.V. ( NBIS ) despite a high valuation, as the fundamentals were truly extraordinary for the company. Even after a significant recent pullback dueI'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency ...

Core Insights - Nebius Group N.V. (NBIS) stock has increased by 73.8% over the past six months, significantly outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry, which grew by 22.7% and 2.1% respectively [1][7] - The company is facing challenges such as macroeconomic uncertainty, rising operating costs, and substantial capital expenditures, with a notable increase in sales, general, and administrative expenses by 87% year over year in Q3 2025 [3][4] - Nebius has tightened its full-year revenue guidance to $500–$550 million, anticipating results near the midpoint due to delays in capacity expansion [5] Company Challenges - The company is experiencing elevated capital expenditure levels, increasing its guidance from around $2 billion to approximately $5 billion for full-year 2025, which poses a risk if revenue growth does not keep pace [3][4] - Execution risks are present as Nebius scales aggressively with multiple data centers, and while adjusted EBITDA is expected to turn slightly positive by year-end 2025, it will remain negative for the full year [5][16] - Nebius faces stiff competition from major players like Microsoft, Amazon, and CoreWeave, with Microsoft’s capital spending raising concerns about return on investment [8][9] Company Valuation - Nebius appears overvalued with a Value Score of F, and its shares are trading at a Price/Book ratio of 4.59X, higher than the industry average of 3.84X [10][11] Company Tailwinds - Nebius operates in a supply-constrained AI infrastructure market, targeting 2.5 gigawatts of contracted power by 2026, up from an earlier projection of 1 gigawatt [12] - The company has secured significant hyperscale agreements, including a $3 billion contract with Meta and a $17.4–$19.4 billion deal with Microsoft, indicating strong demand visibility [13] - Nebius plans to expand its data centers in the UK, Israel, and New Jersey, aiming for $7–$9 billion in annual recurring revenue (ARR) by 2026, with a target of $900 million-$1.1 billion in ARR by the end of 2025 [15] Investment Considerations - Despite long-term growth potential from large contracts and rapid expansion, near-term risks such as stretched valuation, execution challenges, and rising costs may impact performance [16] - Existing investors may consider exiting positions to mitigate potential downside, while prospective investors might remain cautious [17]

Core Insights - Several large-cap stocks experienced significant declines last week, indicating a broader market weakness affecting various sectors [1][2][3][4][5][6] Technology Sector - Credo Technology Group Holding Ltd saw a drop of 20.09% due to weakness in the technology sector, influenced by Broadcom's cautious outlook and Oracle's delayed data center projects for OpenAI [2] - Oracle Corporation's shares fell 14.31% after reporting Q2 sales below estimates, leading to multiple analysts lowering their price targets [5] - Marvell Technology, Inc. decreased by 6.37% amid reports of Microsoft potentially switching to Broadcom for custom AI chip designs [4] Energy and Nuclear Sector - Bloom Energy Corporation's shares slumped 20.68%, reflecting overall market weakness affecting electrical equipment companies [1] - Oklo Inc. decreased by 16.73%, with uranium and nuclear-linked stocks facing pressure from Oracle's delayed data centers [3] Mixed Earnings and Guidance - AeroVironment, Inc. decreased by 15% after reporting mixed earnings and guidance, although Goldman Sachs maintained a Buy rating while lowering the price forecast from $486 to $429 [4] - Alnylam Pharmaceuticals, Inc. saw a decline of 11.06% this week, contributing to the overall negative sentiment in the market [4] Other Notable Declines - Vertiv Holdings, LLC decreased by 13.55% following a downgrade from Wolfe Research [3] - CoreWeave, Inc. fell by 5.52%, caught in the broader tech sell-off triggered by Oracle's mixed fiscal second-quarter earnings [5] - Nebius Group N.V. experienced a decline of 9.61% this week, reflecting the overall market trend [6]

Core Insights - Nebius Group (NBIS) has achieved significant milestones that many AI infrastructure startups do not reach, including securing hyperscaler-scale contracts and raising capital at institutional levels, which positions the company favorably in the market [1] Group 1: Company Achievements - Nebius Group has crossed a threshold by securing multi-year demand visibility, indicating strong future revenue potential [1] - The company has established contracts that are comparable to those of hyperscalers, showcasing its competitive edge in the AI infrastructure sector [1] Group 2: Investment Strategy - The investment approach focuses on identifying high-potential winners before they break out, emphasizing asymmetric opportunities with a potential upside of 3-5 times the downside risk [1] - The strategy includes leveraging market inefficiencies and contrarian insights to maximize long-term compounding while safeguarding against capital impairment [1]

Core Viewpoint - Data center infrastructure stocks experienced a decline over the past week, indicating potential volatility in the sector [1] Group 1: Market Impact - The recent surge in space data is expected to have a significant impact on companies such as Nebius, Iren, and CoreWeave, suggesting a shift in market dynamics [1] Group 2: Earnings Review - Oracle's earnings report will be reviewed, providing insights into the company's performance and its implications for the data center infrastructure market [1]

Core Insights - Nebius (NBIS) is recognized as a leader in the AI neo cloud space, particularly noted for its technological advancements rather than revenue leadership [1] Company Overview - The company is led by Bert Hochfeld, who has a strong background in economics and an MBA from Harvard, with extensive experience in the tech industry [1] - Hochfeld has previously worked for notable companies such as IBM, Raytheon Data Systems, and BMC Software, and has been recognized for his analytical work in the software sector [1] - In 2001, Hochfeld established Hochfeld Independent Research Group, providing research services to major institutions and hedge funds [1] - The Hepplewhite Fund, operated by Hochfeld, was rated as the best performing small-cap fund for five years ending in 2011 [1] Performance and Recognition - Hochfeld has published over 500 articles on Seeking Alpha, focusing on information technology companies, and is highly regarded for his investment insights [1] - He ranks in the top 0.1% of Tip Ranks analysts for his successful selection of information technology stocks [1]

Core Insights - The investment in AI infrastructure is projected to reach $3 trillion to $4 trillion by 2030, according to Nvidia CEO Jensen Huang [1] - There is a growing demand for data center capacity as companies prefer cloud environments for AI training due to high costs associated with purchasing and powering chips [2] Company Summaries Nebius Group - Nebius Group, formerly known as Yandex N.V., has transitioned from a Russian internet company to an AI infrastructure provider, rebranding and resuming trading on Nasdaq after selling its Russian assets [5][6] - The company reported a revenue of $146.1 million in Q3, marking a 355% increase year-over-year, and secured a $3 billion deal with Meta Platforms for AI infrastructure [7] - Despite significant revenue growth, Nebius reported a net loss of $100.4 million for the quarter and $273.7 million for the year, indicating high operational costs in building and running data centers [9][10] Iren Limited - Iren Limited, an Australian company, generates most of its revenue from Bitcoin, allowing it to remain profitable while expanding its AI infrastructure [11] - The company has three data centers in Canada and one in Texas, with plans for further expansion, including a $9.7 billion deal with Microsoft for cloud computing services [12][14] - In the first quarter of fiscal 2026, Iren reported revenue of $240.3 million, a 335% increase from the previous year, and a net income of $384.6 million, contrasting with a loss of $51.7 million a year ago [14][15] Investment Considerations - Iren Limited is viewed as a more favorable investment compared to Nebius Group due to its lack of debt and profitability from Bitcoin mining, which provides a financial cushion for its AI infrastructure expansion [16][17]

Core Insights - Nebius Group N.V. (NBIS) has experienced a share price decline of approximately 17% since the last bullish outlook, indicating that share price growth is not always linear despite strong fundamentals [1] Company Analysis - The company is positioned within the technology sector, with a focus on navigating complexities associated with technology stocks [1] - The analyst emphasizes a commitment to providing clear and accessible insights for investors of all experience levels, aiming to foster a collaborative exploration of market opportunities [1] Investment Perspective - The analyst has a beneficial long position in NBIS shares, indicating confidence in the company's potential for future growth [2] - The article reflects personal opinions and insights, with no external compensation influencing the analysis [2]

Core Insights - Nebius Group N.V. (NASDAQ:NBIS) is recognized as one of the top 15 AI stocks to watch due to significant hedge fund interest and potential for upside [1] Group 1: Company Strategy and Market Position - The co-founder of Nebius Group, Roman Chernin, expressed optimism about a ten- to hundred-fold increase in demand for AI infrastructure as enterprises adopt evolving AI models [2] - Nebius Group is focusing on building high-margin services and long-term customer relationships to prepare for potential market downturns, positioning itself as a consolidator [2] - The company has secured multibillion-dollar agreements with Microsoft and Meta, including a $17 billion deal with Microsoft and a $3 billion partnership with Meta, contributing to a 248% rise in its stock price in 2025 and a market cap exceeding $25 billion [3] Group 2: Analyst Ratings and Market Sentiment - BWS Financial reaffirmed a "Buy" rating for Nebius Group, citing strong demand for its AI cloud services and viewing the Meta agreement as a sign of growing market confidence despite operational challenges [4] - Citizens JMP initiated coverage with a price target of $175 and an "Outperform" rating, noting a shift in sentiment towards the company as a credible ecosystem player due to its partnerships with Microsoft and Meta [5] Group 3: Product Offerings - Nebius Group provides advanced AI infrastructure solutions through its assets, including Avride and TripeTen, as well as stakes in Toloka and ClickHouse, supporting large-scale compute and data workloads [6]

Core Insights - The article discusses the investment strategies and focus areas of The Pragmatic Investor, led by economist James Foord, emphasizing the importance of building diversified portfolios to preserve and increase wealth [1] Group 1: Investment Focus - The Pragmatic Investor covers a wide range of areas including global macro, international equities, commodities, technology, and cryptocurrencies [1] - The investment group aims to guide investors of all levels through various features such as a dedicated portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for discussions [1]