The AI Stock That's Secretly Crushing Nvidia

Core Viewpoint - Nebius is positioned as a high-growth opportunity in the AI infrastructure space, potentially surpassing Nvidia's returns in the coming year [1][2]. Company Overview - Nebius rents AI-optimized data center compute capacity, utilizing dense GPU clusters and liquid cooling technology, targeting large hyperscalers and enterprises for AI workloads [2]. - The company's share prices have increased over 355% in the past year, significantly outperforming Nvidia's 30% gain [2]. Financial Performance - Nebius reported a 355% year-over-year revenue growth in the third quarter, with core AI infrastructure revenues increasing by 400% [4]. - The company has a market capitalization of $25 billion [5]. Growth Catalysts - There is a high demand for AI-optimized cloud computing capacity, leading Nebius to sell all available capacity and pre-sell new capacity in markets like Israel and the UK [4]. - Nebius has secured a multiyear GPU capacity supply deal with Microsoft worth $17.4 billion, expandable to $19.4 billion, and a five-year AI infrastructure deal with Meta Platforms valued at $3 billion [6]. Capital Expenditure and Future Plans - The company has increased its capital expenditure guidance from $2 billion to $5 billion by 2025, planning to add 800 megawatts to 1 gigawatt of connected power and 2.5 gigawatts of contracted power by the end of 2026 [7].