Core Insights - Nebius Group N.V. (NBIS) is projecting a return to positive adjusted EBITDA in the second half of 2025, driven by increasing revenues, global expansion, and a focus on technological innovation [1][9] - The company reported a significant year-over-year revenue increase of 385% in Q1 2025, reaching $55.3 million, and expects full-year revenues between $500 million and $700 million [4][9] - Nebius is enhancing its AI infrastructure with a $2 billion capital expenditure plan for 2025, up from an earlier estimate of $1.5 billion [3] Company Performance - Nebius is experiencing strong growth in its core AI business, benefiting from a full-stack approach that includes high-performance GPU cloud infrastructure and AI development tools [1] - The company has expanded its global infrastructure with data centers in the United States, Europe, and the Middle East, which is expected to enhance its market share in AI cloud computing [2][9] - Nebius has upgraded its AI cloud infrastructure significantly in Q1 2025, improving reliability and reducing downtime to boost customer retention [2] Competitive Landscape - Nebius competes with major players like CoreWeave, Inc. and Microsoft Corporation, both of which are also experiencing substantial growth in the AI cloud computing sector [6] - CoreWeave reported a 420% year-over-year revenue increase to approximately $981.6 million in Q1 2025, highlighting the competitive nature of the market [7] - Microsoft Corporation's operating income increased by 16% year-over-year, indicating strong performance among competitors [8] Financial Outlook - Despite the anticipated positive adjusted EBITDA in H2 2025, management has indicated that adjusted EBITDA will remain negative for the full year of 2025 due to high capital expenditures and operational costs [5] - Nebius expects EBIT margins to be in the range of 20% to 30% over the medium term, supported by the scaling of its AI cloud business [4] Market Performance - Shares of Nebius have increased by 85.4% year-to-date, outperforming the Internet – Software and Services industry's growth of 28.4% [10] - The company's shares are currently trading at a price/book ratio of 3.83X, lower than the industry's ratio of 4.25 [11]

Core Viewpoint - Applied Digital has entered into a $7 billion lease agreement with CoreWeave, indicating a strategic move into AI infrastructure [1] - The partnership is supported by Nvidia and major financial institutions, raising questions about the potential for significant growth versus the risk of being a speculative investment [1] Company Strategy - The deal with CoreWeave represents a major shift for Applied Digital towards focusing on artificial intelligence [1] - The involvement of Nvidia suggests a strong technological backing, which could enhance the company's market position in AI infrastructure [1] Financials - The $7 billion lease is a substantial financial commitment that could impact Applied Digital's future revenue streams and growth trajectory [1] - The financial backing from prominent institutions may provide stability and confidence in the company's strategic direction [1] Market Position - The collaboration with CoreWeave positions Applied Digital as a potential key player in the rapidly growing AI infrastructure market [1] - The market's response to this deal will be critical in determining whether Applied Digital can capitalize on this opportunity or if it will face challenges ahead [1]

Group 1 - The video discusses the deal between CoreWeave and Core Scientific, highlighting its potential impact on other AI infrastructure players [1] - Stock prices referenced were from July 8, 2025, indicating the relevance of the timing of the analysis [1]

Group 1 - Gorilla Technology Group (NASDAQ: GRRR) exemplifies the disconnect between ambitious claims and actual performance in the emerging AI infrastructure sector [1] - The company has positioned itself as a significant player in the AI infrastructure market, but its follow-through has been inconsistent [1] Group 2 - The analysis focuses on small- to mid-cap companies, which are often overlooked by investors, while also occasionally addressing large-cap companies for a broader market perspective [1]

Core Viewpoint - The Nasdaq Composite has declined over 13% since February 18 due to U.S. tariffs and weak economic data, creating potential buying opportunities in the stock market [1] Company Overview: Nebius Group - Nebius Group is an artificial intelligence infrastructure company that has become attractive due to its involvement in the AI sector [3][4] - The company was formed from a $5.4 billion deal involving the split of four business divisions from the Russian search company Yandex, which was delisted from Nasdaq following the Ukraine invasion [5] - Nebius rejoined Nasdaq in October and secured $700 million in private financing led by Nvidia [5] Business Model and Financials - Nebius specializes in building data centers with GPU clusters for AI workloads, partnering with Nvidia to offer advanced chip technology [6] - The company has a strong financial position with approximately $2.45 billion in cash and minimal debt [7] - In 2024, Nebius is projected to grow revenue by 462% compared to 2023, with a forecasted annualized revenue run rate of $750 million to $1 billion by the end of 2025 [7] Market Comparison - Coreweave, another AI data center company, is seeking to raise $4 billion in an IPO, valuing it at around $35 billion, and reported over $1.9 billion in revenue for 2024 [8] - Nebius is investing in infrastructure improvements in Finland and the U.S., aiming for a similar revenue growth trajectory as Coreweave [9] - Currently, Nebius has a market cap of approximately $6.1 billion, indicating significant upside potential compared to Coreweave [9]