Can NBIS AI Cloud 3.1's Blackwell Ultra Launch Trigger Growth Momentum?

Core Insights - Nebius Group N.V. (NBIS) has launched Nebius AI Cloud 3.1, addressing operational challenges related to GPU availability and resource management for enterprises scaling AI workloads [1][4] - The new version incorporates NVIDIA Blackwell Ultra infrastructure, enhanced GPU capacity management, and improved security features, positioning it as a competitive platform in the AI cloud market [1][2] Infrastructure and Operations - Nebius is the first cloud provider in Europe to deploy NVIDIA Blackwell Ultra systems in production, including the GB300 NVL72 with 800 Gbps NVIDIA Quantum-X800 InfiniBand [2] - The introduction of Capacity Blocks and a real-time dashboard allows enterprises to manage GPU capacity and costs more effectively [2][8] - Nebius AI Cloud 3.1 has achieved top MLPerf Training v5.1 results, reinforcing its competitive edge [2] Ecosystem and Development - The platform simplifies access to NVIDIA BioNeMo NIM microservices for healthcare and life sciences, enhancing the developer experience with improved orchestration and billing features [3] - Security enhancements include HIPAA-ready audit logs and granular access controls, catering to regulated workloads [3] Market Position and Competition - Nebius' revenue guidance for 2025 has been raised to $500–$550 million, reflecting confidence in capacity expansion despite near-term risks from power constraints and competition [4][8] - Competitors like CoreWeave and Amazon are ramping up investments in AI infrastructure, with CoreWeave securing significant GPU inventories and Amazon doubling its power capacity by 2027 [5][6] Financial Performance - Nebius shares have increased by 179% over the past year, outperforming the Internet – Software and Services industry, which grew by 26.8% [9] - However, Nebius is considered overvalued with a Price/Book ratio of 3.95X compared to the industry average of 3.74X [10] - The Zacks Consensus Estimate for NBIS' 2025 earnings has seen downward revisions, indicating potential challenges ahead [11][12]