Core Insights - SoundHound AI experienced a significant stock increase of 836% in 2024, largely due to its connection with Nvidia [2] - Nvidia's investment in SoundHound AI was originally made years ago when the company was still private, and the size of the investment was not substantial for Nvidia [3] - Nvidia exited its entire position in SoundHound AI in Q4 2024, indicating a shift in focus [4] Nebius Group - Nebius Group, a Dutch data center operation, was spun off from Yandex and has received investment from Nvidia [5] - Nebius specializes in AI chipware architecture for data centers and is equipping facilities in multiple locations with Nvidia's Blackwell GPU chipsets [5][6] - The rising investment in AI infrastructure positions Nebius favorably for expansion in Europe and the U.S. [6] CoreWeave Comparison - CoreWeave generated 35 billion for its IPO, which would result in a price-to-sales ratio of about 17.5 [9] - The success of CoreWeave's IPO could positively impact Nebius as investors may seek similar under-the-radar companies [11] Market Dynamics - The market is currently favoring companies connected to AI, particularly those involved in AI infrastructure and GPU development [10] - Nebius is expected to provide strategic value to Nvidia, potentially leading to a closer relationship as demand for AI infrastructure rises [12]
Prediction: Buying This Nvidia-Backed Artificial Intelligence (AI) Data Center Stock Now Could Be Like Catching SoundHound AI in 2024