Core Viewpoint - The Nasdaq Composite has declined over 13% since February 18 due to U.S. tariffs and weak economic data, creating potential buying opportunities in the stock market [1] Company Overview: Nebius Group - Nebius Group is an artificial intelligence infrastructure company that has become attractive due to its involvement in the AI sector [3][4] - The company was formed from a $5.4 billion deal involving the split of four business divisions from the Russian search company Yandex, which was delisted from Nasdaq following the Ukraine invasion [5] - Nebius rejoined Nasdaq in October and secured $700 million in private financing led by Nvidia [5] Business Model and Financials - Nebius specializes in building data centers with GPU clusters for AI workloads, partnering with Nvidia to offer advanced chip technology [6] - The company has a strong financial position with approximately $2.45 billion in cash and minimal debt [7] - In 2024, Nebius is projected to grow revenue by 462% compared to 2023, with a forecasted annualized revenue run rate of $750 million to $1 billion by the end of 2025 [7] Market Comparison - Coreweave, another AI data center company, is seeking to raise $4 billion in an IPO, valuing it at around $35 billion, and reported over $1.9 billion in revenue for 2024 [8] - Nebius is investing in infrastructure improvements in Finland and the U.S., aiming for a similar revenue growth trajectory as Coreweave [9] - Currently, Nebius has a market cap of approximately $6.1 billion, indicating significant upside potential compared to Coreweave [9]
Nasdaq Correction: This Magnificent AI Stock Is a Bargain Buy