Core Viewpoint - Nebius Group N.V. (NBIS) experienced significant volatility in its share price during the second half of 2025, influenced by fluctuating AI sentiment and investor uncertainty regarding the future of neocloud operators [1] Group 1: Company Performance - The shares of Nebius Group N.V. saw wild swings, indicating a high level of market speculation and investor reaction to AI trends [1] Group 2: Industry Context - The performance of neocloud operators, including Nebius Group, is closely tied to the broader sentiment surrounding artificial intelligence, which has been variable [1]

Group 1 - The report outlines the strategic importance of computing power as a new type of infrastructure and its collaborative relationship with data and algorithms [3][4] - The global computing power market is characterized by a significant scale and growth, with North America leading and the Asia-Pacific region rapidly catching up [4][5] - The report highlights the evolution of computing power technology, with heterogeneous computing architectures becoming mainstream [4][5] Group 2 - During the "14th Five-Year Plan" period, China's computing power scale has expanded significantly, with the total computing power surpassing previous levels [5][6] - The report discusses the impact of the East Data West Computing project on the geographical restructuring of computing power in China [5][6] - The establishment of a domestic computing ecosystem is underway, with a notable increase in the annual growth rate of domestic AI chip shipments [6][7] Group 3 - The report identifies key segments of the computing power industry chain, including advancements in chiplet technology and optical interconnects that enhance computing density [4][5] - The deployment of edge computing nodes in industrial and automotive internet applications is increasing, reflecting a shift towards more decentralized computing solutions [5][6] - The demand for computing power in various applications, such as AI model training, scientific computing, and smart manufacturing, is analyzed, indicating a growing need for high-performance computing resources [6][7] Group 4 - The competitive landscape of the global computing power industry is dominated by American companies, with major players like NVIDIA, AMD, and Intel leading the high-end computing ecosystem [6][7] - In China, the report highlights the emergence of a "national team" in domestic computing power, with traditional hardware manufacturers transitioning to computing service providers [7][8] - Key competitive dimensions include hardware performance, software ecosystem compatibility, and the ability to deliver comprehensive solutions [6][7] Group 5 - The report forecasts significant growth in the computing power market from 2026 to 2032, with an expected compound annual growth rate and a shift in the market structure towards AI computing power [10][11] - The analysis indicates that the domestic market share of Chinese computing power is projected to exceed 50% under certain scenarios [10][11] - The report emphasizes the importance of establishing a sustainable and efficient computing power ecosystem, with a focus on energy efficiency and green technologies [10][11]

Core Insights - The stock market narrative has shifted towards infrastructure investments, with major technology companies investing heavily in data centers and GPUs, raising questions about the timeline for these investments to yield consumer products that generate revenue [3] - Amazon launched Alexa+ Web, a new browser-based interface for its AI assistant, which has led to a significant stock price increase, indicating a potential shift in the company's business model [3][4] - This transition positions Amazon as a company that enhances consumers' digital lives, suggesting the beginning of a new growth phase for the company [5] Investment Strategy - Amazon's strategy includes offering advanced AI tools for free as part of its Amazon Prime membership, contrasting with competitors who charge subscription fees, thereby increasing the perceived value of Prime [6] - The bundling of premium AI tools with Prime subscriptions creates a high barrier to exit for consumers, enhancing customer retention [7] - Analysts view the shift towards a subscription-based utility model as a key driver for future stock price appreciation [7]

Core Viewpoint - Wall Street is increasingly focused on Amazon's ability to leverage improvements in AI execution at Amazon Web Services (AWS) to drive stock momentum in 2026 [1] Analyst Take - BofA Securities analyst Justin Post reiterated a Buy rating on Amazon with a price target of $303, highlighting that improved sentiment around AWS's AI capabilities could be a key driver for Amazon in 2026 after cloud concerns negatively impacted the stock in 2025 [2] - Amazon's stock gained 5% last year, underperforming the S&P 500's 16% rise and the Nasdaq's 20% gain, as strong retail execution and margin expansion were not enough to alleviate investor concerns regarding AWS's AI competitiveness [2] AWS Positioning and Growth Outlook - Weaker confidence in AWS's positioning contributed to a 15% year-over-year decline in Amazon's forward EV/EBITDA multiple [3] - Expectations for AWS growth to accelerate in 2026 are based on new capacity coming online and leadership changes that may enhance the company's AI narrative, alongside strong growth in Rufus usage supporting Amazon's retail business [3] - Long-term investors may benefit if AWS can leverage its proprietary technology, including large language models and Trainium chips, to improve its competitive stance and become a lower-cost provider as enterprises focus on AI inference cost efficiency [4] Valuation and Financial Estimates - Amazon is currently trading at approximately 11x Street 2027 EBITDA and 25x GAAP EPS, which is slightly above Microsoft Corp at 23x but below Alphabet Inc and Walmart Inc at 26x and 35x respectively [5] - The valuation reflects uncertainty regarding AWS's positioning, but Post considers Amazon the top large-cap internet stock for 2026 due to AWS AI exposure, anticipated cloud acceleration, and a strong retail position [6] - Projected GAAP operating income growth of over 20% in 2026 is supported by retail margin expansion driven by advertising growth, inbound efficiencies, robotics, and headcount leverage [6] - Revenue for 2026 is estimated to grow 12% year-over-year to $801 billion, with GAAP EPS projected at $7.75, while AWS revenue is estimated at $156 billion, slightly above the Street's estimate [7]

Core Insights - Amazon.com, Inc. is a global leader in e-commerce and cloud computing, competing with major players like Microsoft and Google in cloud services and Walmart in e-commerce [1] - Wells Fargo has set a price target of $301 for Amazon, indicating a potential increase of about 21.7% from its current price of $247.34 [2][6] - Amazon-backed Anthropic has launched Claude for Healthcare, a suite of AI tools aimed at improving medical environments and competing with OpenAI's ChatGPT Health [3][6] - Amazon's market capitalization is approximately $2.64 trillion, reflecting its significant market presence [4][6] - Recent stock performance shows a slight increase of 0.43%, with a trading range between $242.25 and $247.86 [4][6] - The company's investment in AI, particularly in healthcare, is expected to drive future growth and impact stock performance [5]

Amazon Inc. (NASDAQ:AMZN) is among the best software infrastructure stocks to buy according to hedge funds. On January 5, Jefferies hiked the stock price target from $275 to $300 and reiterated its Buy rating. The firm acknowledged that Amazon’s shares have underperformed in 2025, partly due to negative investor sentiment stemming from a perceived lag in AI development relative to peers such as Microsoft and Google. However, the firm believes Amazon is in a very strong position, with a large-scale cloud c ...

Shares of cloud computing name Akamai Technologies Inc (NASDAQ:AKAM) were last seen up 5.6% to trade at $93.09, after a rare double upgrade from Morgan Stanley to "overweight" from "underweight." The firm also lifted its price target to $115 from $83, citing the stock's low valuation and growth prospects. On the charts, Akamai Technologies stock has yet to fully recover from the 21.7% post-earnings drop that occurred in February, which took it from $98.03 to $76.73. Today's pop has shares breaking above the ...

Key Points Many AI stocks have struggled recently, following several years of spectacular performance. Investors are questioning high valuations and intense spending on AI infrastructure. One stock, in particular, has seesawed since becoming a major AI data center player last September. 10 stocks we like better than Oracle › The artificial intelligence (AI) sector has been in the spotlight for several years now. Much of the ride has been up and to the right, but recently a cohort of the market h ...

Core Insights - ISG has initiated studies focused on providers of private and hybrid cloud data center services, particularly for data-intensive and AI-led workloads [1] Group 1 - The studies aim to evaluate the capabilities and offerings of various cloud service providers [1] - The focus is on understanding how these providers can support the growing demand for data-intensive applications driven by artificial intelligence [1]

Core Insights - JB Global Capital reported an 8.9% decline in Q4 2025, primarily due to a significant drop in Alibaba, its largest holding, while global markets experienced modest gains [1] - Despite the quarterly setback, the fund achieved a strong full-year return of 67.5% and has delivered 108.9% returns since inception, outperforming major benchmarks [1] - The fund's strategy focuses on avoiding mega-cap tech companies due to valuation discipline, with an emphasis on fundamentals for long-term performance [1] Company-Specific Insights - Alibaba Group Holding (NYSE:BABA) experienced a 34% year-over-year growth in cloud revenue and nine consecutive quarters of triple-digit revenue growth in AI-related products [2] - At the end of Q4 2025, Alibaba's stock traded at approximately $146 per share, with $41 billion in net cash and nearly $35 billion in quarterly revenue from core businesses [2] - JB Global Capital reduced its exposure to Alibaba by about 10% at $172 per share after an 85% price increase, indicating a shift in the risk/reward profile rather than a loss of confidence in the company's value [3]