ZACKS·2025-07-24 14:25Core Insights - Nebius Group N.V. (NBIS) is emerging in the AI sector, providing a robust cloud platform for diverse industries, including tech and life sciences, with tailored solutions beyond standard GPU-as-a-service offerings [1][2] - The company reported a strong annualized run rate revenue of $310 million in April, with continued sales momentum into the second quarter, reflecting high demand for AI compute [2][9] - Nebius was selected by the Israel Innovation Authority to develop the national AI supercomputer, with a project budget exceeding NIS 500 million ($140 million), marking a significant infrastructure initiative [3][9] - The company aims for a run-rate revenue of $750 million to $1 billion by 2025, with expectations for adjusted EBITDA to turn positive in the second half of 2025 [4][9] Competitive Landscape - CoreWeave (CRWV), a U.S.-based AI infrastructure company, is focused on scaling generative AI workloads and has guided revenues between $4.9 billion and $5.1 billion for 2025 due to rising demand [5][6] - Microsoft Corporation (MSFT) is a major player in AI infrastructure with its Azure platform, which is seeing increased adoption among customers for mission-critical workloads, supported by significant investments in OpenAI [6][7] Financial Performance - Nebius shares have increased by 87.3% year-to-date, outperforming the Internet – Software and Services industry's growth of 30% [8] - The company's shares are trading at a price/book ratio of 3.87X, lower than the industry's ratio of 4.31X [10] - The Zacks Consensus Estimate for NBIS' earnings for 2025 has remained unchanged over the past 30 days, with current estimates indicating negative EBITDA [11][12]