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]
1 Nvidia-Backed Artificial Intelligence (AI) Stock to Buy Hand Over Fist in 2025 (Hint: It's Not SoundHound AI)