Core Insights - Microsoft has entered into a deal with Nebius Group to enhance its capabilities in creating large language models and a consumer AI assistant [2] Group 1 - The partnership will provide Microsoft with additional computing power for its internal teams [2] - The collaboration is expected to strengthen Microsoft's position in the AI market [2]

Core Viewpoint - Analysts express optimism about certain stocks, suggesting potential for significant gains despite current high valuations in the market [1][2]. Group 1: Nebius Group - Nebius Group is a Netherlands-based AI hyperscaler operating large-scale GPU clusters for AI applications and developing autonomous vehicle technology [3]. - The stock has seen a remarkable increase, with its price more than quadrupling year to date, and analysts project a 34% upside potential over the next 12 months [4]. - In Q2 2025, Nebius Group's revenue more than doubled compared to the previous quarter, indicating strong demand for AI infrastructure [5]. Group 2: On Holding - On Holding is a rapidly growing athletic sportswear company with a presence in over 80 countries and has sold over 50 million products [6]. - Despite a year-to-date decline of over 20%, analysts predict a rebound, with an average 12-month price target suggesting a 55% increase from the current share price [7]. - The company reported a 32% year-over-year increase in net sales for Q2, reaching record highs, and expects at least 31% growth for the full year [7]. Group 3: The Trade Desk - The Trade Desk operates a leading technology platform for digital advertising, enabling targeted campaigns online and on streaming services [9]. - The stock has experienced a significant decline of almost 60% in 2025, but analysts foresee a recovery with a consensus price target indicating a 43% upside potential [10]. - In Q2, the company's revenue grew by 19% year over year, although this is a slowdown compared to the previous year's growth [11]. The company's strong customer retention rate of 95% and the growth potential in ad-supported connected TV contribute to the optimistic outlook [12].

Core Viewpoint - Nebius Group, formerly known as Yandex, has transformed into a cloud-based AI infrastructure provider after divesting its core search engine and Russian assets, and it resumed trading on Nasdaq in October 2024 [2][3] Company Overview - Nebius owns one data center in Finland and leases additional data centers in Missouri, France, Iceland, and is constructing another in New Jersey while securing a colocation deal in the U.K. [4] - The company utilizes Nvidia's H100, H200, and L40S GPUs for AI tasks and offers its AI infrastructure as a cloud-based service, integrating managed services and developer tools [5] Competitive Landscape - Nebius positions itself as a "full stack" AI infrastructure company, contrasting with CoreWeave, which focuses primarily on GPU-intensive workloads [6] - Nvidia holds a 0.5% stake in Nebius, indicating potential growth in cloud-based GPUs as the AI market expands [7] Strategic Partnerships - In September, Nebius signed a five-year $17.4 billion AI infrastructure deal with Microsoft, which is a significant revenue source for both Nebius and CoreWeave [8] Growth Metrics - Nebius' revenue surged 462% to $117.5 million in 2024, with a projected CAGR of 231% from 2024 to 2027, reaching $4.25 billion [9] - Adjusted EBITDA is expected to turn positive in 2026, with a forecasted increase of 186% to $852 million by 2027, driven by partnerships and data center capacity expansion [10] Valuation Analysis - Nebius has an enterprise value of $25.02 billion, trading at approximately 6 times its projected sales for 2027, while CoreWeave is valued at $83.19 billion, trading at less than 5 times its expected sales [11][12] Investment Outlook - Despite potential cash burn and increased debt, Nebius is positioned to benefit from the shift towards cloud-based AI processing, suggesting that its stock remains a viable investment opportunity [13]

Nebius Group N.V. (NASDAQ:NBIS) is one of the Unstoppable Stocks to Buy and Hold for the Next 5 Years. On September 22, the company announced that, in connection with its previously announced underwritten public offering of Class A ordinary shares, the underwriters exercised in full their option to purchase an additional 1,621,621 shares. This has been done at the offering price of $92.50, less underwriting discounts and commissions, resulting in Nebius Group N.V. (NASDAQ:NBIS)’s aggregate gross proceeds o ...

Nebius Group N.V. (NASDAQ:NBIS) is one of the Best WallStreetBets Stocks to Invest In. On September 15, Seaport Research initiated coverage of the company’s stock with a “Neutral” rating, as reported by The Fly. As per the firm, in the near term, the neocloud space is expected to benefit from healthy demand from hyperscalers for extra GPU and electricity capacity, but business models will matter, with the space expected to consolidate over the longer term. Elsewhere, in Q2 2025, Nebius Group N.V. (NASDAQ:N ...

The ongoing surge in the Nebius stock price has led to divisions in Wall Street. Many investors believe that it has more room to grow, while others expect it to crumble, citing its hefty valuation. ...

Hello. I am a graduate from Bocconi University with a degree in Economics and a concentration in Quantitative Economics. I am currently working at a management consultancy. Previously, I have done internships in private equity (technology buyouts) and venture capital (seed-stage space-tech and climate-tech) at small boutiques. I primarily invest in growth stocks, with a focus on highly innovative sectors, particularly tech and energy. My portfolio consists of mainly high-conviction growth plays - ranging fr ...

Core Insights - Nebius Group N.V. (NBIS) is emerging in the AI infrastructure market, while Microsoft Corporation (MSFT) is a well-established leader in the tech industry [1][2] - AI infrastructure spending is projected to exceed $200 billion by 2028, benefiting both companies but in different magnitudes [2] Nebius Group N.V. (NBIS) - NBIS reported a remarkable revenue increase of 625% year-over-year, reaching $105.1 million, with AI cloud infrastructure revenues growing over nine times [3][9] - The company has raised its year-end Annual Recurring Revenue (ARR) guidance to between $900 million and $1.1 billion, up from a previous estimate of $750 million to $1 billion [4] - NBIS has secured a significant deal with Microsoft, providing dedicated GPU capacity valued at approximately $17.4 billion through 2031, with potential to increase to $19.4 billion [5][9] - The company plans to achieve a connected power capacity of 220 megawatts by 2025 and aims for a 1 GW capacity target by 2026 [4] - NBIS has raised $4 billion in debt and closed a public offering, with proceeds aimed at business growth and data center expansion [7] Microsoft Corporation (MSFT) - MSFT's Azure cloud platform is the second-largest globally, with annual revenues of $75 billion and a growth rate of 34% [9][10] - The company has invested $13 billion in OpenAI, gaining exclusive rights to OpenAI's IP for its products [12] - MSFT's AI business has surpassed a $13 billion annual revenue run rate, growing 175% year-over-year in the fourth quarter of fiscal 2025 [13] - The company plans over $30 billion in capital expenditures for the first quarter of fiscal 2026, supported by a significant cash reserve of $94.56 billion [14] Stock Performance and Valuation - Over the past month, NBIS shares have increased by 57.7%, while MSFT stock has seen a modest rise of 1% [15] - Both companies are considered overvalued, with NBIS trading at a Price/Book ratio of 6.73X and MSFT at 11.07X [18] - Current earnings estimates for NBIS have been significantly revised downward, while MSFT has seen marginal upward revisions [20][22] Investment Outlook - NBIS currently holds a Zacks Rank of 3 (Hold), while MSFT has a Zacks Rank of 2 (Buy), indicating a preference for MSFT as a more favorable investment at this time [23]

Market Overview - September has been a record-breaking month for stocks, with the S&P 500 reaching new all-time highs following the Federal Reserve's first rate cut since 2024 [1] - Various asset classes, including stocks, gold, cryptocurrencies, housing, and trading cards, have seen significant increases in value [1] Nebius Group - Nebius Group has emerged as a 'picks and shovels' play in the AI infrastructure sector, focusing on providing computing solutions through its "neo cloud" platform and optimized data centers [4] - The company recently secured a transformative deal with Microsoft worth $17.4 billion, with an option for an additional $2 billion, which has significantly boosted its market position [5][6] - Following the announcement of the Microsoft deal, Nebius Group's shares surged over 47%, establishing its presence among major AI infrastructure providers [6] - The company's Q2 2025 earnings exceeded expectations, with a full-year annualized run rate (ARR) guidance raised to between $900 million and $1.1 billion, resulting in a 120% increase in stock price over the last three months [9] Hut 8 - Hut 8 Corp. has transitioned from a Bitcoin mining company to a diversified AI infrastructure platform, gaining investor attention due to its revenue rebound [11] - The company reported Q2 2025 earnings with a narrower-than-expected EPS loss and a quarterly revenue of $41.3 million, reflecting a 17% year-over-year gain [12] - Hut 8 has announced plans for four new U.S. sites and signed a five-year deal with the Ontario Independent Electricity System Operator, while maintaining over $200 million in digital assets [13] - The stock has seen a 60% increase in the last month, supported by analyst price target boosts, although technical indicators suggest potential overextension [15][16]

Core Insights - Nebius (NASDAQ: NBIS) is experiencing significant demand due to its focus on artificial intelligence (AI) functionalities, operating a network of data centers tailored for AI technology [1] - The stock has seen substantial appreciation, with a $10,000 investment growing to $43,590 in six months [2] - Revenue growth is impressive, with a 625% year-over-year increase to over $105 million in Q2, although the company reported a net loss of over $91 million [3][4] - The company is expanding its capacity to 1 gigawatt next year and has a strong cash position of approximately $1.7 billion [4] - Current valuations are high, with a price-to-sales ratio nearing 100 and a price-to-book ratio exceeding 7, indicating that strong growth expectations are necessary to justify these levels [5] - Despite its potential in the AI data center market, the stock is considered prohibitively expensive at present [6] Financial Performance - Nebius reported a revenue increase of 625% year-over-year, reaching over $105 million in the second quarter [3] - The company faced a net loss of over $91 million, worsening from a loss of under $62 million in the previous year [3] Market Position - Nebius is positioned as a significant player in the AI data center market, but it faces competition and high valuations that may deter investment at current levels [6]