Core Viewpoint - Nebius is positioned as a leading player in the AI infrastructure sector, providing essential GPU resources for enterprises to develop and deploy AI models, with significant growth potential anticipated in the coming years [1][8]. Growth Drivers - Electricity availability is a critical challenge in the global AI infrastructure expansion, prompting Nebius to target securing 2.5 gigawatts of contracted power by the end of 2026, an increase from its previous goal of 1 gigawatt [3]. - The company has presold much of its capacity at new data centers in the UK and Israel, which will utilize Nvidia's latest Blackwell GPUs [3]. - Nebius reported a remarkable 355% year-over-year revenue increase in Q3, reaching $146 million, as it effectively sold its available capacity [4]. Demand Visibility - Nebius has secured significant contracts, including a $3 billion, five-year agreement with Meta Platforms and a $17.4 billion, five-year deal with Microsoft, indicating strong demand visibility [5]. - The company aims for an annualized run rate of $7 billion to $9 billion by the end of 2026 based on its current outlook [5]. Revenue Projections - Analysts predict Nebius' revenues will grow from an expected $555.9 million in 2025 to $27.1 billion by 2031, reflecting a substantial growth trajectory [6]. - The current valuation of Nebius is approximately 64 times sales, but if the revenue growth continues and the price-to-sales ratio compresses to 8.5 by 2031, the market capitalization could exceed $230 billion, significantly higher than its current market cap of $21.4 billion [6].