Group 1: Nvidia - Nvidia's stock has decreased over 12% year to date despite strong earnings and product innovations, leading to a forward P/E ratio of 26, which is lower than peers like Apple and Microsoft [2][4] - Over the past year, Nvidia's diluted EPS has increased by 72%, with revenue up over 340% and earnings up over 680% over the last three years, although future growth is expected to slow [4][5] - Nvidia maintains a strong balance sheet with more cash and marketable securities than long-term debt, allowing for continued investment in R&D even during downturns [7] Group 2: Vertiv Holdings - Vertiv's shares have dropped 22% year to date due to a market sell-off in AI stocks and disappointing near-term news regarding European orders [8][9] - Despite flat orders year over year in Q4, full-year orders rose by 30%, and management forecasts a 16% organic revenue growth and a 25% increase in adjusted operating profit for 2025 [10][11] - Vertiv is currently trading at 17.7 times Wall Street estimates for free cash flow in 2026, which is considered cheap for a stock with double-digit revenue growth prospects [11] Group 3: Nebius Group - Nebius is an AI infrastructure company that is less recognized than Nvidia but is expected to grow as the industry expands, providing indirect exposure to Nvidia [12][15] - The AI infrastructure segment accounts for over 50% of Nebius's revenue, with plans to launch its first Nvidia GPU cluster in the U.S. and deploy over 22,000 Blackwell GPUs in 2025 [13][14] - Nebius reported sales of 750 million to $1 billion by December 2025, although the company is currently incurring losses [14][15]
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