The Motley Fool·2025-12-03 05:00Core Insights - The AI sector has significantly benefited both Nebius Group and Astera Labs, with Nebius focusing on data center infrastructure and Astera providing components for data centers [1][2] Nebius Group - Nebius has experienced a remarkable sales growth of 355% year-over-year in Q3, reaching $146.1 million, driven by strong demand from tech giants like Microsoft and Meta [3] - The company is expanding its infrastructure, opening a new facility in the U.K. to support a 20-fold increase in computing capacity by 2030, resulting in capital expenditures of $955.5 million in Q3, a substantial rise from $172.1 million in the previous year [4] - Nebius has accumulated over $4 billion in debt as of Q3, compared to just $6.1 million in 2024, and reported a net loss of $119.6 million in Q3, worsening from a loss of $94.2 million in 2024 [5] Astera Labs - Astera Labs reported record Q3 revenue of $230.6 million, a 104% increase year-over-year, and anticipates Q4 revenue between $245 million and $253 million, significantly up from $141.1 million in 2024 [7] - The company is profitable, with a Q3 net income of $91.1 million, a notable improvement from a net loss of $7.6 million in the previous year [7] - Industry forecasts predict AI infrastructure spending will grow from $59 billion in 2025 to $356 billion by 2032, benefiting Astera's business, which has also strengthened through the acquisition of aiXscale Photonics [8] Investment Comparison - Astera Labs is considered a better investment than Nebius due to its stronger financials and superior share price valuation, as indicated by a lower price-to-sales (P/S) ratio compared to Nebius [10][11] - Nebius's unprofitability and rapid debt accumulation raise concerns about its higher valuation, while Astera's capital expenditures remain manageable at $18.9 million in Q3, only slightly up from $18.8 million the previous year [13]