Monday was a tough day for the AI market. News spread that DeepSeek had outperformed OpenAI's model in efficiency while requiring significantly fewer computing resources for training compared to current models with similar performance. This led to a sell-off in AI-relatedI am the head of research for the pre-IPO and venture division of the investment bank. Prior to that, I have been working as a global equity research analyst in an investment bank for the past 5 years. My specialization are Biotechnology, I ...

Group 1 - The article is the third in a series discussing Nebius Group N.V. (NASDAQ: NBIS) and presents a bullish investment thesis on the company [1] - The author has a beneficial long position in the shares of NBIS, indicating confidence in the company's future performance [1] Group 2 - The previous articles on Seeking Alpha have laid the groundwork for a positive outlook on Nebius, suggesting potential growth and investment opportunities [1]

Core View - The DeepSeek sell-off is considered a golden buying opportunity, with Nebius Group N V (NASDAQ: NBIS) highlighted as a top stock in the AI space [1] - This investment is characterized as high-risk/high-reward, suitable for portfolios targeting significant returns [1] Investment Opportunity - Nebius Group N V is positioned as the best stock to buy in the AI sector currently [1] - The opportunity aligns with strategies focused on high return potential, such as the YOLO portfolio [1] Additional Benefits - Subscribers to the Pragmatic Investor gain access to a weekly Macro newsletter [1] - Access to specialized portfolios like the End of The World and YOLO portfolios is provided [1] - Trade ideas and weekly video content are also included for subscribers [1]

Group 1 - The service Beyond the Wall Investing offers significant savings on equity research reports, potentially saving thousands of dollars annually for subscribers [1] - The investing group provides a fundamentals-based portfolio, weekly insights from institutional investors, and alerts for short-term trade ideas based on technical signals [2] - Community engagement is facilitated through ticker feedback requests and chat features, enhancing the overall investment experience [2] Group 2 - The article emphasizes that past performance does not guarantee future results, highlighting the importance of independent analysis [3] - It clarifies that no specific investment recommendations are provided, and opinions expressed may not reflect the views of the broader platform [3] - The analysts contributing to the platform include both professional and individual investors, some of whom may not be licensed or certified [3]

Subscription Offer - Beyond the Wall Investing offers a subscription service providing access to the latest and highest-quality analysis of Wall Street buying and selling ideas [1] - The service includes a free trial and a special 10% discount for new subscribers [1] Analyst Background - Daniel Sereda is the chief investment analyst at a family office with investments across continents and diverse asset classes [1] - He specializes in filtering vast amounts of data to extract critical investment ideas [1] - Sereda runs the investing group Beyond the Wall Investing, which provides institutional-level market analysis to subscribers [1] Disclosure - The analyst has no current stock, option, or derivative positions in the mentioned companies but may initiate a long position in NBIS within the next 72 hours [1] - The article expresses the analyst's personal opinions and is not compensated by any company mentioned [1]

AI Industry and Stock Opportunities - The emergence of AI has created significant opportunities in the market, with potential for high returns in certain stocks [1] - Nebius (NASDAQ: NBIS) is highlighted as an interesting stock within the AI sector, suggesting it may have growth potential [1] Analyst's Perspective - The analyst has no current positions in the mentioned companies but may initiate a long position in Nebius (NBIS) or NVIDIA (NVDA) within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with the mentioned companies [2] Seeking Alpha's Disclaimer - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide investment advice or recommendations [3] - The views expressed in the article may not represent those of Seeking Alpha as a whole, and the platform is not a licensed securities dealer or investment adviser [3]

Career and Expertise - Bert Hochfeld holds a degree in economics from the University of Pennsylvania and an MBA from Harvard [1] - He has a long career in the tech industry, working for companies such as IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software [1] - Starting in the 1990s, he worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space [1] - In 2001, he founded Hochfeld Independent Research Group, providing research services to major institutions like Fidelity, Columbia Asset, and SAC Capital [1] - He operated the Hepplewhite Fund, a hedge fund specializing in technology investments, which was rated as the best-performing small-cap fund for the 5 years ending in 2011 by Hedge Fund Research [1] Publications and Recognition - Bert Hochfeld has published over 500 articles on Seeking Alpha, all focused on companies in the information technology space [1] - He is highly esteemed for his investment wisdom and ranks in the top 0.1% of Tip Ranks analysts for his selection of information technology stocks and their subsequent successes [1] Legal Issues - In 2012, Bert Hochfeld was convicted of misappropriating funds from a hedge fund he operated [1]

Providing alpha-generating investment ideas. I am an independent investor managing my family's portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge me on my performance.I have a generalist approach as I explore, analyze and invest in any sector so long there is perceived alpha potential vs the S&P500. The typical holding period ranges between a few quarters to multiple years ...

Company Overview - Nebius Group (NBIS) is an AI company backed by Nvidia, with its stock price at 7.35% as of Jan 8, 2025 [1] - The company is highlighted as a potential AI darling on Wall Street for the year [1] Stock Performance - Stock prices referenced are from the trading day of Jan 8, 2025 [1]

Nvidia's Investment Strategy - Nvidia has invested in an Amsterdam-based AI infrastructure company, Nebius Group, as part of its strategy to expand its portfolio in the AI sector [1][3] - Nvidia holds ownership positions in six publicly traded companies, including SoundHound AI, which has seen a 950% increase in share price over the last 12 months [2] Nebius Group Overview - Nebius Group, previously affiliated with Yandex, became an independent entity after Yandex divested its non-Russian assets due to sanctions imposed after Russia's invasion of Ukraine [4][5][6] - Nebius raised $700 million through a private placement, issuing 33.3 million shares at $21 each, with Nvidia and venture capital firm Accel as key investors [7] Nebius Group's Business and Financial Performance - Nebius operates in AI infrastructure, generative AI, autonomous driving, and technology-based education through subsidiaries Toloka, Avride, and TripleTen [8] - The company reported a 766% year-over-year revenue increase to $43.3 million in Q3 2024, with AI infrastructure accounting for two-thirds of total sales [9] - Nebius' cloud business grew almost threefold quarter-over-quarter, reaching an annualized run rate of $120 million [9] - The company projects its annual recurring revenue (ARR) run rate to reach up to $1 billion by the end of 2025, supported by $2.3 billion in cash and equivalents as of Sept. 30 [10] Nebius Group's Growth Prospects - Nebius is positioned to benefit from the projected $1 trillion spending on AI infrastructure and its role in Nvidia's Blackwell GPU rollout [11] - The company is expanding its data center operations across Paris and Finland, driven by demand for Nvidia GPU clusters [13] - Nebius' potential partnerships with other chip players like Advanced Micro Devices and cloud hyperscalers such as Oracle, Microsoft, Amazon, and Alphabet could further enhance its growth [14] Investment Considerations for Nebius - Nebius' share price of $31 is near the midpoint of its high and low points since its Nasdaq listing, making it an attractive option for AI investors [12] - The company's international presence and ties to Nvidia provide diversification and growth potential, making it a compelling opportunity for patient investors [15]