1 of Jensen Huang's Favorite Artificial Intelligence (AI) Stocks Just Signed a Blockbuster Deal, and Investors Can't Get Enough of It

Core Insights - Nvidia is a leading company in the AI ecosystem and has a multibillion-dollar stock portfolio that invests in AI stocks, including Nebius Group [1][2] - Nebius recently secured a significant multiyear deal with Microsoft, valued between $17.4 billion and $19.4 billion, which has positively impacted its stock price [6][8] - Nebius is expected to achieve an annual revenue run rate of $900 million to $1.1 billion by the end of this year, with potential revenue from the Microsoft deal reaching $2.9 billion annually from 2026 to 2031 [7][9] Company Overview - Nebius, which began trading on Nasdaq in October 2024, was formed from assets previously owned by Yandex and is now headquartered in Amsterdam [3][5] - The company operates data centers designed for AI applications and is equipped with Nvidia's latest GPUs, positioning it similarly to other successful AI data center companies [5][10] - Nebius has a solid financial position with $1.68 billion in cash and equivalents and a debt-to-equity ratio of 26% [10] Market Reaction - Following the announcement of the Microsoft deal, Nebius shares surged by nearly 50% [6] - Analysts have responded positively, with BWS Financial raising the price target for Nebius shares from $90 to $130, indicating significant upside potential [8] Future Prospects - Nebius is exploring additional deals, which could further enhance its revenue potential [7][10] - The company has stakes in various businesses, including autonomous driving and robotics, indicating a diversified growth strategy [11]