Core Insights - Louis Stevens is a highly regarded investment research analyst, ranking in the top 0.1% according to TipRanks [1] - He founded L.A. Stevens Research and developed the LAS Index, which has consistently outperformed market indices since its inception [1] Company Overview - L.A. Stevens Research is focused on investment research and equity analysis, catering to a diverse audience from beginners to seasoned professionals [2] - The LAS Index is a proprietary stock selection method that aims to identify high-potential investment opportunities [1]

Core Insights - The article highlights the significant growth of neocloud operators, particularly Nebius, as a key player in the AI revolution, driven by the increasing demand for AI processing resources [1][3][12] Neocloud Overview - Neoclouds are specialized cloud providers that focus on AI processing, utilizing a stockpile of graphics processing units (GPUs) and other necessary infrastructure, often referred to as GPU-as-a-service (GPUaaS) [5][6] Nebius Performance - Nebius has seen substantial stock performance, gaining 122% since resuming public trading in mid-October, and reported a revenue of $55.3 million in Q1, marking a 385% year-over-year increase [2][7] - The annualized run rate from its core AI services is $249 million, reflecting a remarkable increase of 684% [7] Expansion Plans - Nebius is not yet profitable but is expanding its data center network to meet growing AI demand, with plans to bring three new locations online in 2025 and achieve 100 megawatts (MW) of contracted capacity by year-end [8][9] Analyst Sentiment - Wall Street analysts are highly optimistic about Nebius, with all four analysts rating the stock as a buy or strong buy, and a consensus price target of $66.50 indicating a potential 50% upside [10][11] - Goldman Sachs analyst Alexander Duval has initiated coverage with a buy rating and a price target of $68, suggesting a potential upside of 53% [10] Competitive Positioning - Nebius is noted for its full-stack software, cost efficiencies, and scalability, trading at an enterprise-value-to-sales ratio of 3, which is lower than rival CoreWeave's ratio of 5, indicating potential undervaluation [11]

Group 1 - The S&P 500 and Dow Jones Industrial Average are trending lower, while Nebius Group's stock is up 11.2% due to a favorable analyst outlook [1] - Goldman Sachs analyst Alexander Duval initiated coverage on Nebius with a buy rating and a price target of $68, indicating a potential upside of 53.5% from the previous closing price [3] - Nebius is recognized as a leader in the neocloud market, benefiting from its full stack software offerings and cost advantages, particularly for applications requiring high-performance infrastructure for GPUs [4] Group 2 - Nebius shares have risen nearly 100% in the first half of 2025, reflecting strong growth prospects in the AI sector [3][5] - Investing in Nebius is seen as a good opportunity for gaining exposure to AI, supported by the company's merits and growth potential [5]

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today! Analyst's Disclosure:I/we have a beneficial long position in the shares of NBIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from See ...

Core Insights - Nebius Group's shares nearly doubled in the first half of 2025, rising 99.7% through June 30 [1] - The company is a rebranded version of Yandex, which divested its Russian assets and relocated to Amsterdam after the Ukraine invasion [2] - Nebius is positioned as a start-up with significant cash reserves and ongoing projects, showing explosive growth and optimism for becoming a major player in AI [3] Financial Performance - In Q1 2025, Nebius reported a remarkable revenue growth of 385% and a 684% increase in annualized recurring revenue (ARR), reaching $249 million [8] - Operating costs grew by 96% during the same period, indicating margin expansion alongside revenue growth [8] - The company aims to achieve between $750 million and $1 billion in ARR by the end of 2025, supported by strong initial guidance [8] Strategic Investments - Nebius made a majority investment in Toloka, an expert data provider for AI companies, highlighting the importance of quality data in AI development [9] - Toloka is backed by notable investors, including Jeff Bezos' venture company, indicating confidence in its value [9] Market Position and Growth Potential - Nebius raised $700 million in a private placement led by Nvidia, positioning itself as a key player in the neocloud space [4] - The company benefits from early access to Nvidia's latest GPUs, enhancing its competitive edge in AI infrastructure [5] - Despite trading at about 20 times this year's revenue estimates, if Nebius meets its ARR guidance, the valuation could adjust to a more reasonable 10 times forward ARR [11] Analyst Sentiment - Following a strong endorsement from Arete Research, Nebius' stock surged over 50% in June, with a price target set at $84, indicating significant upside potential [10] - The execution and embedded value of Nebius' AI clusters are viewed positively, especially amid a shortage of Nvidia GPUs [10]

Core Viewpoint - Nvidia is recognized as a leading player in the artificial intelligence (AI) sector, particularly due to its graphics processing units (GPUs) which are essential for training large language models (LLMs) [1] Nvidia's Investment Strategy - Nvidia, under CEO Jensen Huang, has leveraged its market position to invest in other AI-related companies, owning a total portfolio valued at approximately $1.14 billion as of April 27, 2025 [2][4] Nvidia's Stock Holdings - Nvidia's largest holding is in CoreWeave, valued at nearly $897 million, which has seen a significant increase of 286% since its IPO [4][5] - Arm Holdings, with a stake of $117.6 million, has increased by 146% since its IPO in 2023, providing essential intellectual property for CPUs, GPUs, and NPUs [6] - Applied Digital Corp, in which Nvidia holds a $43.4 million position, offers cloud services and digital infrastructure solutions for high-performance computing and AI [7][8] - Recursion Pharmaceuticals, with a stake of about $40.7 million, utilizes AI for drug discovery and collaborates with Nvidia [9][10] - Nebius Group, valued at $25 million, provides cloud solutions for AI applications, allowing customers to rent infrastructure [10][11] - WeRide, Nvidia's smallest investment at $23.6 million, focuses on commercializing self-driving vehicles using Nvidia's technology [12] Notable Investment: Nebius - Nebius is highlighted as the best stock in Nvidia's portfolio, recently listed on Nasdaq and raising $700 million in a private placement [13][14] - With a market cap of approximately $11.4 billion, Nebius is considered more affordable than CoreWeave and is projected to generate mid-single-digit billions in annual revenue at high margins [15] - Nebius's user-friendly AI solutions may attract less sophisticated companies beginning to implement AI, potentially expanding its customer base [16]

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades with a proven track record of success [1] - Quad 7 Capital has maintained an average position of 95% long and 5% short since May 2020, showcasing their strategic approach to market conditions [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, enhancing their research capabilities [1] Group 2 - BAD BEAT Investing offers benefits such as understanding market dynamics, executing well-researched trade ideas weekly, and access to multiple chat rooms for collaboration [2] - Members receive daily summaries of key analyst upgrades and downgrades, which aids in informed decision-making [2] - The platform also provides education on basic options trading and extensive trading tools to enhance investor proficiency [2]

Core Insights - Nebius Group N.V. is experiencing significant growth in the AI cloud market, with a reported 385% year-over-year revenue increase in Q1 2025, reaching $55.3 million [2][3] - The company has a strong Buy consensus rating from Wall Street analysts, indicating that the market has not fully recognized its potential, with a 12-month price target of $66.50, representing a 41.85% upside from the current price [11][12] Financial Performance - Nebius's Annualized Recurring Revenue (ARR) has surged to $310 million by April 2025, reflecting a stable and growing customer base, supporting management's revenue guidance of $500 million to $700 million for the full year [3] - Management anticipates reaching adjusted EBITDA break-even in the second half of 2025, which would signify a de-risking event for the stock [4] Competitive Advantage - Nebius differentiates itself in the crowded cloud market by offering a full-stack platform that optimizes the entire technology pipeline, from hardware design to proprietary software management [5][6] - The company's platform is specifically designed to handle the intensive data processing needs of AI models, avoiding bottlenecks common in general-purpose clouds [7] Strategic Partnerships and Investments - Nebius has established key industry partnerships, including being a launch partner for NVIDIA's latest chips, providing clients with early access to advanced AI hardware [8] - The company secured a $1 billion convertible note offering to fund its expansion and data center growth, ensuring it can meet increasing customer demand [9] Market Validation - A strategic investment in Nebius's Toloka business by Bezos Expeditions, led by Amazon founder Jeff Bezos, enhances the company's credibility and may attract further investment [10] Valuation and Future Outlook - Analysts maintain a strong Buy rating for Nebius, with an average price target of $66.50 per share, indicating optimism about the company's future growth and profitability [11][12] - The stock is viewed as potentially undervalued, with analysts suggesting that as Nebius executes its growth strategy, its stock price will be adjusted to reflect its role in the AI ecosystem [12][13]

Core Insights - The article discusses the performance of Nebius, highlighting an unrealized return of 85% since the position was acquired over March to May, with 17% sold in July to lock in profits [1] - Invictus Origin, founded by Oliver Rodzianko in May 2025, aims to deliver high annual returns through innovative portfolio strategies, particularly the High-Alpha Black Swan Portfolio, designed to outperform major indices like the Nasdaq-100 [1] - The Invictus Hydra Portfolio maintains about 20% in dynamic cash reserves, allowing for strategic value investing during market disruptions [1] Company Overview - Invictus Origin is characterized by resilience, performance, and disciplined capital stewardship, with a focus on lower-volatility capital preservation through a complementary family office structure [1] - Oliver Rodzianko has extensive experience as a macro-focused investment analyst, specializing in public equities, with a disciplined approach to fundamental valuation and long-term market cycles [1] Investment Strategy - The investment process of Invictus Origin integrates U.S. market specialization with a comprehensive understanding of international markets, particularly in sectors like technology, semiconductors, artificial intelligence, and energy [1] - The firm collaborates with top-tier editors to provide high-level, actionable insights to sophisticated investors, enhancing its reputation in the investment community [1]

Group 1: Nebius Group - Nebius Group (NBIS) trades at over 70 times trailing sales, but this valuation is misleading due to rapid growth driven by AI demand [3][4] - The company reported 385% year-over-year revenue growth in Q1 2025, with annual recurring revenue reaching $310 million and projected to hit $750 million to $1 billion by year-end [4][6] - Nebius builds GPU clusters for enterprises needing AI compute power, with a facility in Kansas City housing 35,000 Nvidia GPUs, making it one of the largest deployments outside Amazon or Microsoft [5][6] - The company has $1.44 billion in cash and manageable debt, allowing it to fund significant expansion [6] - Nvidia's investment in Nebius validates its technology and strategy, providing early access to Blackwell chips for competitive pricing advantages [7][8] - Nebius has secured $2.4 billion in total funding, creating a strong competitive moat in the AI compute market [8][9] Group 2: Rocket Lab - Rocket Lab (RKLB) trades at 41 times trailing sales, but this valuation does not reflect its transformation into a diversified space infrastructure provider [10][11] - Q1 2025 revenue reached $123 million, a 32% year-over-year increase, with over 50% of revenue now coming from spacecraft systems rather than launches [10][11] - The company was selected as one of five providers for the U.S. Space Force's $5.6 billion National Security Space Launch program, enhancing its position in high-priority defense missions [12][13] - Rocket Lab's involvement in multiple billion-dollar defense frameworks provides multiyear revenue opportunities and validates its technology [12][13] - The demand for satellite launches is expected to increase fivefold by 2030, positioning Rocket Lab for significant growth [14] Group 3: Investment Perspective - The market often applies traditional valuation metrics to innovative companies like Nebius and Rocket Lab, which may lead to undervaluation [14][15] - Both companies are positioned in industries with exponential growth potential, with Nebius benefiting from AI compute demand doubling every six months and Rocket Lab capitalizing on increasing satellite launch demand [14][15] - Investors willing to overlook conventional valuation fears may find significant opportunities in Nebius Group and Rocket Lab [15]