Core Insights - Nebius, formerly Yandex, has transitioned from a Russian search engine to an AI infrastructure services provider based in Amsterdam, following the divestment of its Russian assets and rebranding [2][3] - The company's stock has experienced significant growth, trading at approximately $100, driven by the booming AI market and strategic partnerships with major tech firms [3][10] Business Model - Nebius operates one first-party data center in Finland and leases additional data centers in Missouri, France, Iceland, and the U.K., with plans for a second data center in New Jersey [4] - The company utilizes Nvidia's high-performance GPUs in its data centers, allowing clients to outsource their AI processing needs instead of investing in their own infrastructure [5] - Nebius differentiates itself by offering managed software services and dedicated solutions for specific markets, positioning itself as a full-stack AI infrastructure provider [6] Financial Performance - In 2024, Nebius reported a revenue increase of 462% to $117.5 million, although it recorded an adjusted EBITDA of negative $266.4 million [8] - For the first nine months of 2025, revenue surged another 437% year over year to $302.1 million, with adjusted EBITDA improving from negative $162.4 million to negative $79.9 million [8] - The company anticipates an annualized revenue run rate of $7 billion to $9 billion by the end of 2026, driven by significant contracts with Microsoft and Meta [9][10] Future Projections - Analysts project Nebius' revenue to rise 392% to $578.2 million in 2025, 191% to $1.68 billion in 2026, and 158% to $4.34 billion in 2027, with expectations of positive adjusted EBITDA in 2026 [11] - The company's market cap is currently $25.7 billion, trading at 15 times next year's sales, with potential for significant growth if it meets or exceeds analyst expectations [13][14]

Core View - CoreWeave reported a significant revenue increase of 420% year-over-year, achieving $980 million in Q1, but warned that AI cloud business revenue expectations are "unstable," projecting a slowdown in annual revenue growth to 190% [1][3][23]. Financial Performance - Q1 revenue was $981.6 million, up from $188.7 million in the same period last year, with adjusted revenue reaching $163 million, a 550% increase [2]. - The company reported a net loss of $314.6 million, compared to a loss of $129.2 million in the previous year, with an adjusted EBITDA margin of 62% [2][20]. - Q1 earnings per share were a loss of $1.49, with capital expenditures ranging from $3 billion to $3.5 billion for Q2 and $20 billion to $23 billion for the full year [2][22]. Revenue Guidance - Despite strong Q1 performance, the company anticipates a significant reduction in annual revenue growth guidance to 190%, less than half of Q1's growth rate [3][23]. - For Q2, revenue is expected to be between $1.06 billion and $1.1 billion, with adjusted revenue between $140 million and $170 million [22][23]. Contracts and Client Relationships - CoreWeave's remaining performance obligations (RPO) decreased from $15.1 billion to $14.7 billion, with a new agreement with OpenAI valued at up to $11.9 billion not yet included in the RPO [7][18]. - The company signed a new agreement with a "hyperscale customer" and expanded a contract with a large AI enterprise worth $4 billion, which will be reflected in future revenue [7][9]. Market Position and Strategy - CoreWeave's business model relies on signing contracts before purchasing NVIDIA AI chips and other data center equipment, positioning it as a barometer for AI-related spending [3][10]. - The company is focused on expanding its capabilities, financing infrastructure, differentiating its platform, and enhancing market outreach [13][15]. Industry Outlook - The demand for advanced AI infrastructure is rapidly increasing, with expectations that AI will contribute $20 trillion to the global economy by 2030 [12]. - CoreWeave has raised over $21 billion to expand its infrastructure and data center capabilities, with the recent IPO seen as a significant milestone in its financing strategy [12][13].