Prediction: This AI Cloud Infrastructure Stock Can Be the Next Nvidia in the 2030s

Core Insights - Nebius is experiencing significant demand that exceeds its current data center capacity, aiming to achieve 220 megawatts of connected power by the end of 2025, with approximately 100 megawatts from its New Jersey and Finland data centers [1] - The company is expanding its customer base to include major technology firms and AI-native startups, enhancing long-term revenue visibility [2] - Nebius is transitioning from a niche AI cloud provider to a comprehensive AI infrastructure platform, improving its cloud infrastructure and software capabilities [3] Financial Performance - In Q2 of fiscal 2025, Nebius reported a revenue increase of 625% year-over-year and 106% sequentially, reaching $105.1 million, driven by strong demand in its AI cloud infrastructure business [5] - The company has raised its annualized run-rate revenue guidance from $750 million to $1 billion to a new range of $900 million to $1.1 billion [4] Market Position and Strategy - Nebius is focusing on expanding its GPU compute clusters business, maintaining high utilization rates and stable pricing despite upcoming next-generation GPU releases [4] - The company aims to secure 1 gigawatt of power by the end of 2026, which will involve both expanding existing data centers and establishing new sites [8] - Nebius is following a strategy similar to Nvidia's, rapidly adding capacity and building a software layer to create a scalable platform [11] Software Development - The company is enhancing its software stack to support larger GPU clusters and improve performance, including the development of an inference-as-a-service platform [12][13] - This platform aims to address challenges such as latency and GPU scarcity, potentially shifting revenue towards higher-margin software and services [13] Valuation and Market Expectations - Nebius shares have increased by 222% in 2025, with a market capitalization of approximately $22.3 billion, trading at 88 times sales, indicating high expectations from investors [14] - The company is still in the early stages of its AI journey, with significant growth potential as it aims to replicate Nvidia's success in the AI infrastructure market [14][17]