Nebius Group NV (NASDAQ:NBIS) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, analyst Josh Baer from Morgan Stanley maintained a Hold rating on Nebius Group NV (NASDAQ:NBIS), with a price target of $126. The analyst is bullish on the company’s lower total cost of ownership driven by custom infrastructure, its strong software capabilities backed by an experienced developer base, and a diversified customer mix that includes large, investment‑grade clients and strategic equ ...

Core Insights - Nebius Group N.V. (NBIS) and Amazon.com, Inc. (AMZN) present distinct investment profiles in the AI cloud sector, with NBIS focusing on high growth and direct exposure to AI infrastructure demand, while AMZN offers stability and diversification through its established AWS platform [1][2] Group 1: Nebius Group N.V. (NBIS) - Nebius operates in a supply-constrained AI infrastructure market, targeting a contracted power capacity increase to 2.5 gigawatts by 2026 from 1 gigawatt, with 800 megawatts to 1 gigawatt expected to be operational by the end of 2026 [3] - The company has secured significant long-term contracts with Microsoft, valued between $17.4 billion and $19.4 billion, and with Meta, up to $3 billion, with revenue contributions anticipated to begin in Q4 2025 [4][9] - Nebius is expanding its global data center footprint, planning to enhance existing facilities in the U.K., Israel, and New Jersey, while targeting $7–$9 billion in annual recurring revenue (ARR) by 2026 [6][9] - The company has raised its capital expenditure outlook from approximately $2 billion to about $5 billion for 2025, which increases execution risk if revenue growth does not align with capital-intensive strategies [7] Group 2: Amazon.com, Inc. (AMZN) - Amazon continues to lead in e-commerce and cloud computing, with innovations like AI-powered shopping assistants enhancing customer engagement and driving sales [10] - AWS remains a key growth driver, offering extensive infrastructure and AI-focused services that simplify the deployment of AI models, reinforcing Amazon's leadership in cloud-based AI [11][12] - Amazon's substantial investments in AI infrastructure, including custom chips and AI clusters, position the company to meet rising demand for AI workloads, although these investments also strain financial resources [13] Group 3: Comparative Analysis - Over the past month, NBIS shares have increased by 6.3%, while AMZN stock has risen by 2.8% [14] - Valuation analysis indicates that Nebius is currently overvalued, while Amazon is considered undervalued, with respective Value Scores of F and B [15] - Analysts have significantly revised earnings estimates upward for NBIS, while there has been a marginal downward revision for AMZN [20][21] - In terms of Zacks Rank, NBIS holds a Rank 3 (Hold), whereas AMZN has a Rank 2 (Buy), suggesting that AMZN may be a more favorable investment at this time [21]

Company Performance - Nebius Group NV (NASDAQ:NBIS) experienced a significant decline, falling 8.68% to close at $99.29, reflecting overall market pessimism due to geopolitical tensions triggered by President Trump [1][3] - The decline in Nebius's stock price was part of a broader market trend, with the tech-heavy Nasdaq index dropping by 2.39% [3] Geopolitical Impact - President Trump announced plans to impose 10% tariffs on goods from eight countries opposing his takeover of Greenland, prompting the EU to threaten retaliation with $108 billion in levies [2] Technological Developments - Nebius Group NV plans to deploy the NVIDIA Rubin platform through Nebius AI Cloud and Nebius Token Factory, aiming to enhance AI capabilities for its customers starting in the second half of the year [4] - As an NVIDIA Cloud Partner, Nebius will be among the first AI cloud providers to offer this platform across its full-stack infrastructure in the US and Europe [4] Market Outlook - Despite the current challenges, there is potential for Nebius as an investment, although some analysts believe other AI stocks may offer better returns with lower risk [6]

Core Insights - DDN announces collaboration with NVIDIA to enhance AI factory architecture, focusing on eliminating data bottlenecks for improved performance and faster operationalization of large-scale AI [1][2][3] Group 1: Collaboration and Technology Integration - The partnership aims to ensure that advanced AI platforms powered by NVIDIA Rubin and BlueField-4 are supplied with data efficiently, leading to higher GPU utilization and faster inference [3][5] - DDN's platform is optimized for NVIDIA's latest hardware and software innovations, including Spectrum-X Ethernet and DOCA-accelerated services, ensuring consistent performance across demanding AI environments [5][6] Group 2: Performance Metrics and Benefits - The collaboration enables up to 99% GPU utilization in large-scale AI environments and a 20-40% reduction in time-to-first-token for long-context inference workloads [7] - Organizations can expect faster model deployment through simplified data pipelines and lower infrastructure overhead by reducing CPU load and inefficient data movement [7][8] Group 3: Future of AI Infrastructure - The unified architecture represented by NVIDIA Rubin and BlueField-4 signifies a shift towards integrated compute, networking, and data, allowing data to become a competitive advantage [8][9] - DDN's collaboration with NVIDIA is transforming AI infrastructure into AI factories that deliver outcomes faster and at scale, enhancing operational confidence [9][10]

Core Viewpoint - CoreWeave, Inc. announced the integration of NVIDIA Rubin technology into its AI cloud platform, enhancing its offerings for customers focused on agentic AI, reasoning, and large-scale inference workloads [1] Group 1: Company Developments - CoreWeave is expected to be one of the first cloud providers to implement the NVIDIA Rubin platform in the second half of 2026, which will provide customers with increased flexibility and choice [1]

Core Insights - Red Hat is expanding its collaboration with NVIDIA to enhance enterprise open source technologies in alignment with the rapid evolution of enterprise AI and rack-scale AI advancements [1][2] - The partnership aims to provide Day 0 support for the latest NVIDIA architectures across Red Hat's hybrid cloud and AI portfolios, facilitating the transition of AI from experimentation to production for organizations [2][3] Group 1: Collaboration and Product Development - Red Hat Enterprise Linux for NVIDIA is a specialized edition optimized for the NVIDIA Rubin platform, designed to support the latest NVIDIA platform advancements at launch [5][6] - The collaboration will introduce support for NVIDIA Confidential Computing, enhancing security for AI workloads and providing cryptographic proof of data protection [4][10] - Red Hat OpenShift will offer NVIDIA Rubin platform customers access to a leading enterprise hybrid cloud platform, automating deployment and lifecycle management of accelerated computing [4][10] Group 2: Infrastructure and Performance - The NVIDIA Vera Rubin platform features innovations such as the Vera CPU and advanced GPUs, aimed at delivering significant improvements in intelligence for agentic AI [3][4] - Red Hat's hybrid cloud solutions will be optimized for NVIDIA's breakthroughs, ensuring enterprise-grade reliability and a consistent operational model across hybrid cloud environments [2][4] - The introduction of Red Hat Enterprise Linux for NVIDIA will coincide with the general availability of the NVIDIA Vera Rubin platform in the second half of 2026, providing customers with the latest drivers and integration tools [7][10] Group 3: Security and Interoperability - Red Hat Enterprise Linux is validated for NVIDIA's latest accelerators, ensuring seamless integration between hardware and software to reduce deployment friction [10] - Enhanced security features, including SELinux and proactive vulnerability management, are critical for protecting sensitive data in AI training and inference environments [10] - The unified platform offered by Red Hat Enterprise Linux across on-premises, edge, and public cloud environments aims to lower the total cost of ownership and reduce infrastructure silos [10]

Core Insights - NVIDIA launched the Rubin platform, featuring six new chips aimed at creating a powerful AI supercomputer that sets a new standard for AI system deployment and security at lower costs, facilitating mainstream AI adoption [2][4] - The platform utilizes extreme codesign across its components, which include the NVIDIA Vera CPU and NVIDIA Rubin GPU, to significantly reduce training time and inference costs [3][5] Innovations and Features - Rubin introduces five key innovations: advanced NVLink interconnect technology, Transformer Engine, Confidential Computing, RAS Engine, and the NVIDIA Vera CPU, enabling up to 10x lower inference costs and 4x fewer GPUs for training compared to the previous Blackwell platform [5][10] - The platform supports massive-scale mixture-of-experts (MoE) model inference, enhancing AI capabilities while reducing operational costs [5][10] Ecosystem and Partnerships - Major AI labs and cloud service providers, including AWS, Google, Microsoft, and OpenAI, are expected to adopt the Rubin platform, indicating broad ecosystem support [6][26] - Collaborations with companies like CoreWeave, Dell, and HPE aim to integrate Rubin into their AI infrastructures, enhancing performance and scalability [9][25] Performance and Efficiency - The Rubin platform is engineered to deliver exceptional performance, with the NVIDIA Vera Rubin NVL72 rack providing 260TB/s bandwidth, surpassing the entire internet's capacity [10][20] - Advanced Ethernet networking through Spectrum-6 technology enhances data center efficiency, achieving 5x better power efficiency and reliability compared to traditional methods [19][18] Market Readiness - The Rubin platform is in full production, with products expected to be available from partners in the second half of 2026, marking a significant step in AI infrastructure evolution [22][24] - Companies like Microsoft and AWS are set to deploy Rubin-based instances, further solidifying its role in next-generation AI capabilities [23][22]