This AI Infrastructure Play Could Double Your Money

Core Insights - Nebius is positioned as a strong investment opportunity for those seeking high returns while being tolerant of short-term volatility [1] - The company is benefiting from a supply shortage in AI-optimized data center capacity, which enhances its pricing power [2][4] Company Overview - Nebius rents AI-optimized data center capacity, including Nvidia GPU clusters and liquid-cooling solutions, to large enterprises and AI start-ups [3] - The company reported a remarkable 355% year-over-year revenue increase in Q3, with an adjusted EBITDA margin of 19% [5] Financial Performance - Nebius has secured significant contracts, including a $17.4 billion deal with Microsoft and a $3 billion deal with Meta Platforms, validating its scale and strategy [5] - Revenue projections indicate growth from $554 million in 2025 to $3.2 billion in 2026, and $5.8 billion in 2027 [7] Market Position - The current market capitalization of Nebius is approximately $24 billion, with a price-to-sales ratio of 64.3 times [7] - If the price-to-sales multiple compresses to around 10 times by 2027, the market capitalization could reach approximately $58 billion, representing a potential increase of 162% [8]