Core Insights - Nvidia has exited its position in SoundHound AI and taken a stake in Nebius Group, a data center stock [2] - Nebius is playing a critical role in the AI revolution and its current valuation appears reasonable [3] Company Background - Nebius was spun off from Yandex, a Russian internet conglomerate, following sanctions imposed by the U.S. and E.U. after Russia's invasion of Ukraine [4] - Nebius raised $700 million in an equity financing round shortly after its Nasdaq debut, with Nvidia participating in this round [5] Strategic Developments - Nebius is investing $1 billion in AI infrastructure across Finland and France, constructing data centers equipped with Nvidia's Hopper and Blackwell GPUs [7] - The company is also expanding its presence in the U.S. with a new data center in Kansas City featuring more Blackwell GPUs [7] Market Position and Valuation - Nebius expects its annual recurring revenue (ARR) to reach at least $220 million by the end of the first quarter, with a long-term goal of $750 million to $1 billion by December [9] - Comparatively, Nebius could be valued between $13.1 billion and $17.5 billion based on a price-to-sales multiple derived from CoreWeave's rumored valuation, while its current market capitalization stands at $10.9 billion [10][11]
Meet The Under-the-Radar Artificial Intelligence (AI) Data Center Stock That Nvidia Just Plowed Millions Into