Core Viewpoint - Nvidia-backed Nebius Group is being considered for investment due to its potential growth opportunities in the market [1] Company Summary - Nebius Group is associated with Nvidia, indicating a strategic partnership that may enhance its technological capabilities and market position [1] - The stock price of Nebius Group was noted to have decreased by 5.22% on March 17, 2025, suggesting recent market volatility [1] Investment Consideration - The video discusses the rationale behind opening a position in Nebius Group, highlighting potential investment opportunities [1] - The publication date of the video is March 18, 2025, indicating the timeliness of the investment discussion [1]

Core Insights - SoundHound AI experienced a significant stock increase of 836% in 2024, largely due to its connection with Nvidia [2] - Nvidia's investment in SoundHound AI was originally made years ago when the company was still private, and the size of the investment was not substantial for Nvidia [3] - Nvidia exited its entire position in SoundHound AI in Q4 2024, indicating a shift in focus [4] Nebius Group - Nebius Group, a Dutch data center operation, was spun off from Yandex and has received investment from Nvidia [5] - Nebius specializes in AI chipware architecture for data centers and is equipping facilities in multiple locations with Nvidia's Blackwell GPU chipsets [5][6] - The rising investment in AI infrastructure positions Nebius favorably for expansion in Europe and the U.S. [6] CoreWeave Comparison - CoreWeave generated $1.9 billion in revenue in 2024, a 736% increase from 2023, but has a high customer concentration risk with over 75% of revenue from two customers [8] - CoreWeave is seeking a valuation of approximately $35 billion for its IPO, which would result in a price-to-sales ratio of about 17.5 [9] - The success of CoreWeave's IPO could positively impact Nebius as investors may seek similar under-the-radar companies [11] Market Dynamics - The market is currently favoring companies connected to AI, particularly those involved in AI infrastructure and GPU development [10] - Nebius is expected to provide strategic value to Nvidia, potentially leading to a closer relationship as demand for AI infrastructure rises [12]

Core Viewpoint - Nebius (NASDAQ: NBIS) is positioned for significant near-term growth, bolstered by a strong cash position resulting from major asset divestitures and recent funding, following its separation from Russia due to the Ukraine invasion [1] Company Summary - Nebius has a notably large cash position, which enhances its growth potential in the near term [1] - The company has successfully decoupled from Russia, a strategic move following geopolitical tensions [1] Analyst Profile - Oliver Rodzianko is an investment analyst with a focus on the technology sector, emphasizing value principles and resilient management [1] - His expertise includes AI, semiconductors, software, and renewable energy, targeting companies with lasting competitive advantages [1] - Rodzianko's investment strategy involves value trading at inflection points, typically holding investments for one to two years [1] Investment Strategy - Rodzianko anticipates an annual return of 30% or above for strong buy recommendations in value trading, and 20% or above for long-term investments [1] - For buy recommendations, expected annual returns are 22.5% or above for value trading and 15% or above for long-term investments [1] - Hold recommendations expect annual returns of 15% or above for value trading and 10% or above for long-term investments [1]

Core Viewpoint - Nebius Group, an AI infrastructure company, is emerging as a significant player in the technology sector following its restructuring and separation from Yandex, presenting potential investment opportunities for investors [1][2][3]. Company Overview - Nebius Group was publicly listed under its current name since October 2022 after restructuring from Yandex, a major Russian search engine [3]. - The company is led by Arkady Volozh, who has shifted focus towards AI infrastructure while maintaining three other growing segments: Toloka, educational technology, and Avride, which specializes in autonomous delivery robots [4]. Growth Segments - Each segment of Nebius Group contributes to its revenue model, with Avride recently partnering with Grubhub for robot delivery services on U.S. college campuses, operating nearly 100 robots as of January [5]. - The company has expanded its operations by establishing a new GPU cluster in the U.S. and increasing capacity in Europe, alongside launching an AI-focused cloud software platform and AI Studio [6]. Financial Performance - Nebius Group anticipates revenue of at least $55 million for the current quarter, indicating over 45% sequential growth from the previous quarter [8]. - The company projects an annualized run rate (ARR) of $750 million to $1 billion by the fourth quarter of this year, with potential revenue for that quarter possibly exceeding $250 million [9]. Strategic Positioning - As of December 31, 2024, Nebius Group had a cash reserve of $2.45 billion and negligible debt, positioning it strongly post-separation from Yandex [10]. - The company has a strategic relationship with Nvidia, which participated in a $700 million funding round and holds over 1 million shares of Nebius stock [10]. Valuation Insights - The stock valuation has improved, with a forward enterprise-value-to-revenue multiple projected to be below 5 for the next year if revenue targets are met [11]. - Management's confidence in the company's growth potential suggests that the current valuation may be attractive, especially if investor interest increases [12].

Group 1 - The analysis focuses on the growth prospects of companies, utilizing the Discounted Cash Flow (DCF) model for valuation purposes [1] - Insights are provided on cash flow generation under different business models, indicating a thorough review process [1] Group 2 - There is no indication of any stock, option, or derivative positions held by the analyst in the companies mentioned, ensuring an unbiased perspective [2] - The article reflects the author's own opinions and is not influenced by compensation from any company [2]

Core Insights - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Nebius Group [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has a disclosure policy regarding its investment positions [1] - Parkev Tatevosian is affiliated with The Motley Fool and may receive compensation for promoting its services [1]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nebius Group. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Viewpoint - Nebius Group N.V. (NBIS) has experienced significant stock performance, with shares rising over 60.7% year to date, contrasting with declines in the broader technology sector and the internet software industry [1] Financial Performance - Despite the year-to-date surge, NBIS shares have declined 3.8% since February 20, attributed to lower Annual Recurring Revenue (ARR) of $90 million in the December quarter as the company focused on sales and marketing team development and customer transitions to a new AI platform [2] - Revenues for the reported quarter reached $37.9 million, marking a 466% year-over-year increase, driven by a 602% year-over-year growth in the core AI infrastructure business [3] - For the March quarter, the company anticipates an ARR of at least $220 million, with full-year 2025 ARR expected to range between $750 million and $1 billion [3] Liquidity and Financial Health - The company has a strong liquidity position, having raised $700 million in a private placement with notable investors, including NVIDIA, Accel, and Orbis, in December 2024 [6] - At the end of the fourth quarter of 2024, NBIS reported $2.4 billion in cash, indicating a robust balance sheet [6] Market Position and Offerings - Nebius offers an AI-centric cloud platform designed for intensive AI and machine learning workloads, alongside other products like Toloka, TripleTen, and Avride [9] - The company launched its first U.S. NVIDIA GPU cluster in Kansas City, with an initial capacity of 5MW, set to go live by the end of the first quarter of 2025 [10] - A GPU cluster in Paris featuring NVIDIA H200 Tensor Core GPUs began operations in the reported quarter, with plans to deploy over 22,000 NVIDIA Blackwell GPUs in the U.S. and Finland in 2025 [11] Growth Potential - The Total Addressable Market (TAM) for GPU-as-a-service and AI cloud is projected to grow at a CAGR of over 35% from 2023 to 2030, with AI technologies expected to reach $800 billion by 2030 [13] - Nebius' other three business segments have a combined TAM of approximately $150 billion [13] Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 loss is set at 35 cents per share, with revenues expected to decline by 96.88% year-over-year to $77.5 million [14]

Core Viewpoint - Nebius is expanding its existing facilities and constructing new ones to meet the growing demand for artificial intelligence [1] Company Summary - Nebius is actively investing in infrastructure to enhance its capacity in response to the increasing market needs for AI solutions [1] Industry Summary - The artificial intelligence sector is experiencing insatiable demand, prompting companies like Nebius to scale operations significantly [1]

Core Viewpoint - D.A. Davidson & Co. analyst Alexander Platt initiated coverage on Nebius Group N.V. with a Buy rating and a price forecast of $50, positioning the company as a key alternative to hyperscalers like AWS, Azure, and GCP, which are facing pricing and supply constraints [1][2] Company Positioning - Nebius is specifically designed for AI workloads, offering dedicated AI computing services with transparent pricing and scalable infrastructure [2][3] - The company has a vertically integrated model and owns data centers, providing a structural advantage for handling next-generation AI needs [3] Market Demand - As AI adoption grows, companies will require scalable and cost-effective compute solutions, which hyperscalers often fail to provide without high premiums [3][4] - Nebius combines compute power with networking, workload scheduling, and AI-optimized services, making it a more scalable and efficient option for AI-focused businesses [4]