In this piece, we will discuss the 15 Best AI Stocks to Watch in December 2025.Amid rising valuations, increased capital spending, and cautionary signals from global investors and policymakers, the AI sector continues to draw attention. The intense competition that is shaping the sector was highlighted by Bill Gates, who spoke at Abu Dhabi Finance Week on November 8, 2025. He warned that not all companies with high valuations will end up as winners, even though he regards AI as “a deeply profound technology ...

As has been the case so many times before, investors "bought the rumor and sold the news."It's been a tough past couple of months for Nebius Group (NBIS 3.11%) shareholders. The stock's down nearly 30% from its mid-October peak, starting with worries that artificial intelligence (AI) stocks are in a bubble, followed by mid-November news that its widening losses were even worse than expected. The market's understandably worried.As veteran investors can attest, however, there's always more to the story. Nebiu ...

Key Takeaways Nebius boosts 2025 capex from $2B to $5B to speed data center and GPU expansion.NBIS still expects to exit 2025 slightly adjusted EBITDA-positive (group level) despite higher spending.Nebius will use debt and equity financing as it scales toward up to 1 GW of power by 2026.Nebius Group N.V.’s (NBIS) third-quarter 2025 results not only highlight a business that is moving at a breakneck speed but also reflect dramatically accelerated investments to keep up with AI demand.  As it doubles down on ...

AI is driving sales growth for both companies, but one stands out as a superior investment.The arrival of artificial intelligence (AI) has been a boon for ASML Holding (ASML 1.78%) and Nebius Group (NBIS +2.21%). Both are seeing sales growth as customers seek out their AI-related offerings.ASML provides the extreme ultraviolet (EUV) lithography equipment necessary to manufacture the most advanced semiconductor chips, which are used in AI tech. Nebius operates data centers delivering the computing capacity n ...

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior [1] - It highlights the author's extensive experience in asset management, particularly in equity analysis and research [1] Group 1: Professional Background - The author has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1] - The professional background includes advising on and implementing multi-asset strategies, with a strong emphasis on equities and derivatives [1] Group 2: Investment Philosophy - The article advocates for accessible and empowering investing, aiming to inspire confidence in long-term investment strategies [1] - It encourages collaboration among investors to share insights and improve investment knowledge [1]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Summary of Nebius Group Conference Call Company Overview - **Company**: Nebius Group (NasdaqGS:NBIS) - **Market Cap**: $25 billion [2] Industry Context - **Industry**: Emerging cloud infrastructure - **Growth Trajectory**: Nebius is positioned among the fastest-growing players in the tech sector, particularly in cloud infrastructure [2] Key Points and Arguments Company Strengths - **Experienced Team**: Nebius has a team of 1,000 engineers from Yandex, providing a significant advantage in scaling operations and infrastructure [6][7] - **AI Infrastructure**: The company focuses on delivering software and infrastructure tailored for AI engineers, catering to both startups and large enterprises [9] - **Scale and CapEx**: Nebius is one of the few gigawatt-scale organizations in the cloud infrastructure space, emphasizing the importance of scale in meeting market demands [10] - **Custom Solutions**: The company builds its infrastructure from scratch, allowing for tailored solutions that optimize cost and efficiency [11] Full-Stack Vision - **Integrated Platform**: Nebius aims to create a vertically integrated platform that allows AI engineers to manage their entire workflow from training to optimization without needing to switch platforms [13][14] - **Ecosystem Partnerships**: The company plans to partner with ecosystem suppliers to enhance its offerings without needing to own every component [14][15] Customer Base and Market Strategy - **Diverse Customer Segments**: Nebius intends to serve various market segments, with a focus on enterprises, which are expected to account for two-thirds of compute spending in the next three to five years [18][19] - **Anchor Customer**: Microsoft has signed a five-year agreement with Nebius worth up to $19 billion, utilizing Nebius's infrastructure for various business needs, including AI model development [20][21] Demand Environment - **Surge in Demand**: There has been a notable increase in demand for compute resources, with Nebius reporting a 70% quarter-on-quarter increase in pipeline production, generating $4 billion in the last quarter [24][25] - **Market Trends**: Startups and established companies are increasingly focusing on AI, leading to a broader range of use cases and a growing dependence on infrastructure [26] Financial Health and Capital Strategy - **Capital Raising**: Nebius has raised approximately $8.5 billion to date, enabling significant expansion and the establishment of multiple data center locations [40][41] - **Profitability Focus**: The company aims for EBITDA margins of 20%-30% in the medium term, with a focus on operational efficiency and cost management [45][46] Challenges and Bottlenecks - **Infrastructure Delivery**: The complexity of delivering infrastructure in a timely manner is a significant challenge, requiring careful project management and unique configurations [34][36] - **Market Concerns**: There are concerns about whether the current demand for AI infrastructure will sustain, especially in light of recent market corrections [27][39] Future Outlook - **Growth Projections**: Nebius expects to scale its annual recurring revenue (ARR) significantly by 2026, leveraging its experienced team and operational efficiencies [46] - **Long-Term Vision**: The company is committed to expanding its capabilities and customer base while maintaining a disciplined approach to capital management and profitability [44][47] Additional Insights - **AI-First Transition**: Many companies are transitioning to AI-first strategies, indicating a broader market shift that Nebius is well-positioned to capitalize on [26] - **Emerging Use Cases**: The expansion of AI applications beyond traditional models to include voice, video, and imagery is driving demand for Nebius's infrastructure [26]

Group 1 - Nebius Group N.V. (NBIS) has experienced increased volatility recently due to a reassessment of the AI trade, leading to investor speculation about potential entry points [1] - The analysis suggests a bullish outlook on NBIS, while also advocating for a more cautious approach to investment decisions [1] - The investment strategy focuses on identifying undervalued companies with strong balance sheets and management teams, particularly in sectors with long-term growth potential [1] Group 2 - The leader of the investing group Best Of Breed Growth Stocks emphasizes the importance of combining growth-oriented principles with strict valuation criteria to enhance investment safety [1] - The investment group offers exclusive access to high-conviction stock picks, comprehensive research reports, real-time trade alerts, and macro market analysis [1]

Nebius is up over 200% this year, but the best is yet to come.In this video, I will talk about the recent updates regarding Nebius (NBIS 3.90%) and explain why this is my largest AI position. Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Nov. 28, 2025. The video was published on Nov. 28, 2025. ...

Core Insights - The AI sector has significantly benefited both Nebius Group and Astera Labs, with Nebius focusing on data center infrastructure and Astera providing components for data centers [1][2] Nebius Group - Nebius has experienced a remarkable sales growth of 355% year-over-year in Q3, reaching $146.1 million, driven by strong demand from tech giants like Microsoft and Meta [3] - The company is expanding its infrastructure, opening a new facility in the U.K. to support a 20-fold increase in computing capacity by 2030, resulting in capital expenditures of $955.5 million in Q3, a substantial rise from $172.1 million in the previous year [4] - Nebius has accumulated over $4 billion in debt as of Q3, compared to just $6.1 million in 2024, and reported a net loss of $119.6 million in Q3, worsening from a loss of $94.2 million in 2024 [5] Astera Labs - Astera Labs reported record Q3 revenue of $230.6 million, a 104% increase year-over-year, and anticipates Q4 revenue between $245 million and $253 million, significantly up from $141.1 million in 2024 [7] - The company is profitable, with a Q3 net income of $91.1 million, a notable improvement from a net loss of $7.6 million in the previous year [7] - Industry forecasts predict AI infrastructure spending will grow from $59 billion in 2025 to $356 billion by 2032, benefiting Astera's business, which has also strengthened through the acquisition of aiXscale Photonics [8] Investment Comparison - Astera Labs is considered a better investment than Nebius due to its stronger financials and superior share price valuation, as indicated by a lower price-to-sales (P/S) ratio compared to Nebius [10][11] - Nebius's unprofitability and rapid debt accumulation raise concerns about its higher valuation, while Astera's capital expenditures remain manageable at $18.9 million in Q3, only slightly up from $18.8 million the previous year [13]