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]

Core Insights - The AI sector is experiencing rising valuations and increased capital spending, but caution is advised due to potential overvaluations and market sentiment shifts [2][4] - Bill Gates emphasized that not all high-valuation AI companies will succeed, indicating a competitive landscape [2] - BlackRock's Ben Powell highlighted that the AI infrastructure ecosystem, including chipmakers and energy suppliers, may benefit more from investments than model developers [3] Industry Overview - European regulators are urging caution regarding concentrated exposure among U.S. hyperscalers like Nvidia, Alphabet, Microsoft, and Meta, noting that market sentiment could change if growth expectations stall [4] - The European Central Bank's 2025 Financial Stability Review pointed out the need for differentiation among AI stock picks due to a mix of FOMO-driven investment and solid earnings growth [4] Investment Methodology - The list of the 15 best AI stocks to watch was curated based on financial media, ETFs, and hedge fund interest as of Q3 2025, focusing on stocks with significant upside potential [7][8] Company Highlights - Workday, Inc. (NASDAQ:WDAY) has a hedge fund holder count of 64 and an upside potential of 25.31%, but faces mixed growth signals due to market saturation [9][10] - Block, Inc. (NYSE:XYZ) has a hedge fund holder count of 64 and an upside potential of 37.47%, with sustained momentum in its Square and Cash App ecosystems [14][15] - Nebius Group N.V. (NASDAQ:NBIS) has a hedge fund holder count of 65 and an upside potential of 66.40%, with significant partnerships with Microsoft and Meta driving its growth [19][20]

Core Viewpoint - Nebius Group has experienced significant stock price volatility, with a nearly 30% decline since mid-October, driven by concerns over AI stock valuations and disappointing financial results [1][6]. Company Overview - Nebius specializes in cloud-based artificial intelligence data center services, focusing on AI model training and inference training, achieving a remarkable revenue growth of 355% to $146.1 million in Q3 2024 [4][6]. Financial Performance - The company reported a loss of $119.6 million for the three months ending in September, a significant increase from a loss of $43.6 million in the same quarter the previous year, and worse than analysts' expectations of a $97 million loss [6][11]. - The stock's market capitalization is currently $24 billion, with a current price of $93.41 [5]. Market Dynamics - The initial surge in Nebius's stock price was fueled by a multiyear, multibillion-dollar service contract with Microsoft, which attracted significant investor interest [8][9]. - The subsequent sell-off was influenced by broader market concerns regarding the overvaluation of AI stocks, leading to profit-taking among investors [9][10]. Future Outlook - Despite current losses, the company is positioned for potential growth due to its contract with Microsoft and the increasing demand for specialized AI data center solutions [11].