Core Insights - Nebius has announced an agreement to acquire Tavily, enhancing its AI cloud platform with agentic search capabilities, which is crucial for the rapidly growing agentic AI market [1] - The acquisition aims to create a unified platform for enterprises to build and operate autonomous AI agents, integrating real-time search infrastructure into Nebius's existing offerings [1] - The agentic AI market is projected to grow significantly, from approximately $7 billion in 2025 to between $140 billion and $200 billion by the early 2030s, indicating a compound annual growth rate exceeding 40% [1] Company Overview - Nebius is positioned as an AI cloud company focused on providing a full-stack platform for developers and enterprises to manage their AI initiatives, from data and model training to production deployment [1] - The company is listed on NASDAQ (NASDAQ: NBIS) and is headquartered in Amsterdam, serving a diverse range of clients including startups and Fortune 500 companies [1] Acquisition Details - The acquisition of Tavily will allow Nebius to enhance its software stack, providing developers with the necessary tools to create enterprise-grade agentic systems without relying on multiple vendors [1] - Tavily's technology will complement Nebius's existing offerings, particularly the Nebius Token Factory, which provides high-performance inference for AI agents [1] - The transaction is expected to close in the coming weeks, although the transaction value has not been disclosed [1] Market Potential - The agentic AI market is anticipated to see exponential growth as enterprises increasingly deploy autonomous AI systems, with Tavily's agentic search representing a critical capability in this landscape [1] - Tavily has achieved over 3 million monthly SDK downloads and serves a developer community of more than one million users, indicating strong product-market fit [1] - Major clients of Tavily include Fortune 500 companies such as IBM, showcasing its relevance across various industries including financial services and logistics [1]

Key Takeaways NBIS will report Q4 results Feb. 12, with the consensus implying a 44-cent loss and $232.2 million in revenue.Nebius is scaling its AI cloud with new platform releases and expanded global data center capacity.NBIS began contributions from Microsoft and Meta contracts in Q4, while facing heavy capex and supply woes.Nebius Group N.V. (NBIS) will report fourth-quarter 2025 results on Feb. 12, before market open.The Zacks Consensus Estimate for the bottom line for the to-be-reported quarter is peg ...

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 - Nebius Group N.V. (NBIS) stock has increased by 29.9% in the past month and 97% over the last six months, outperforming the Zacks Computer & Technology sector and the S&P 500 composite [2][8] - The company is aggressively expanding its infrastructure to meet the high demand for AI capabilities, raising its contracted power target to 2.5 gigawatts by 2026 [5][12] Company Performance - NBIS has outperformed major peers such as Microsoft Corporation (MSFT), which fell by 0.9%, while Amazon.com, Inc. (AMZN) and CoreWeave, Inc. (CRWV) increased by 20.9% and 9%, respectively [3] - The company has secured multibillion-dollar contracts with Microsoft, valued between $17.4 billion and $19.4 billion, and with Meta, up to $3 billion, expected to contribute significantly to revenue starting late in Q4 2025 [6][8] Infrastructure Expansion - Nebius is launching new cloud platforms, including Aether 3.0 and Nebius AI Cloud 3.1, designed to enhance AI capabilities and enterprise security [9][10] - The company is also expanding its global data center footprint, with new facilities planned in the U.K., Israel, and New Jersey, targeting $7–$9 billion in annual recurring revenue (ARR) by 2026 [11][12] Financial Outlook - Nebius has raised its capital expenditure outlook from approximately $2 billion to about $5 billion for 2025, indicating a significant investment in growth [13] - The company is projected to generate between $900 million and $1.1 billion in ARR by the end of 2025 [12] Valuation Metrics - NBIS shares are currently trading at a Price/Book ratio of 5.52X, which is higher than the Internet Software Services industry's average of 3.99X [15]

Core Insights - Nebius Group N.V. (NBIS) is set to deploy the NVIDIA Rubin platform across its AI Cloud and Token Factory in the second half of 2026, positioning itself as a leader in next-generation AI technology [1][8] - The Vera Rubin NVL72 platform is designed for complex workloads, optimizing cost per token for extensive inference chains, and will support Nebius' enterprise-ready inference platform [2][8] - Nebius aims for an annual recurring revenue (ARR) of $7–$9 billion by the end of 2026, driven by strong demand and capacity expansion, despite facing challenges from power constraints and competition [4] Technology and Infrastructure - The Rubin platform complements existing NVIDIA GB200 and Grace Blackwell Ultra NVL72 capacities, ensuring optimal performance for various AI workloads [3] - Nebius AI Cloud 3.1 integrates enhanced GPU management and security features, addressing the growing challenges of GPU availability and capacity planning [3] Competitive Landscape - Competitors like CoreWeave are also deploying NVIDIA Rubin in 2026, leveraging significant partnerships with NVIDIA to enhance their AI cloud capabilities [5] - Amazon is expanding its AWS infrastructure significantly, which includes doubling its capacity by 2027, thereby intensifying competition in the AI cloud space [6] Financial Performance - Nebius shares have increased by 217.8% over the past year, outperforming the Internet – Software and Services industry, which grew by 32.2% [7] - Despite strong performance, Nebius is considered overvalued with a Price/Book ratio of 5.25X compared to the industry average of 4.01X [10] Earnings Estimates - The Zacks Consensus Estimate for NBIS' 2025 earnings has been revised downward, indicating potential challenges ahead [12]

Core Insights - Nebius will start offering NVIDIA's Vera Rubin NVL72 GPU in the second half of 2026 in the US and Europe, becoming one of the first AI cloud providers to deploy this computing platform [1] - The integration of Vera Rubin NVL72 into Nebius's full-stack infrastructure will enable customers to build next-generation AI applications with regional availability and control [1] - Nebius Token Factory is described as a post-training platform for enterprises, aimed at facilitating the development of AI systems [1] Product and Technology Overview - The Rubin computing platform will complement Nebius's existing NVIDIA GB200 NVL72 and Grace Blackwell Ultra NVL72 capacities, expanding customer options [2] - NVIDIA's CEO Jensen Huang announced that Vera Rubin has entered full-scale production, positioning it as the successor to Grace Blackwell [2] - Vera Rubin is characterized as an AI supercomputer composed of six core components, including Vera CPU, Rubin GPU, and others, designed for next-generation AI workloads in cloud and large data centers [2] Performance and Cost Efficiency - The Rubin GPU features a third-generation Transformer engine with NVFP4 inference performance of 50 PFLOPS, which is five times that of the previous Blackwell GPU [3] - The Vera Rubin platform can train large-scale Mixture of Experts (MOE) models in the same training time while requiring only a quarter of the GPUs, reducing the training cost per token to one-seventh of the previous generation [3] - Vera Rubin will support third-generation confidential computing technology, becoming the industry's first rack-level trusted computing platform, catering to AI scenarios with high demands for security isolation, data privacy, and multi-tenant environments [3]

Core Insights - Nebius will deploy the NVIDIA Rubin platform through its AI Cloud and Token Factory, enabling next-generation AI capabilities starting in H2 2026 [1] - Nebius is among the first AI cloud providers to offer NVIDIA Vera Rubin NVL72, integrating it across its infrastructure in the US and Europe [2] - The Vera Rubin NVL72 is designed for complex AI workloads, including advanced reasoning and large-scale mixture-of-experts models, optimizing cost per token [3] Company Overview - Nebius is a technology company focused on building full-stack cloud infrastructure for the global AI industry, headquartered in Amsterdam and listed on Nasdaq [7] - The company has a global presence with R&D hubs in Europe, North America, and Israel [7] Product and Infrastructure - Nebius AI Cloud provides direct infrastructure access with benchmark-validated performance, allowing customers to utilize NVIDIA platforms effectively [5][6] - The Nebius Token Factory serves as an enterprise-ready platform for training and serving open-source models with predictable performance and cost [5] - Nebius's infrastructure is validated against NVIDIA reference architectures, ensuring reliable performance for Rubin-based workloads [6] Strategic Vision - The integration of Vera Rubin into Nebius's offerings aims to accelerate AI innovation, providing the necessary infrastructure for enterprises to develop advanced AI systems efficiently [4] - The Rubin platform will complement existing NVIDIA capacities, expanding options for customers based on different AI workload profiles [4]

Core Insights - AI infrastructure spending is projected to exceed $758 billion by 2029, creating significant investment opportunities in the sector [2] - Nebius Group N.V. (NBIS) and Microsoft Corporation (MSFT) represent two distinct investment approaches in AI infrastructure, with Nebius as a fast-growing pure play and Microsoft as a dominant technology giant [1][2] Group 1: Nebius Group N.V. (NBIS) - Nebius is operating in a supply-constrained AI infrastructure market, with demand for GPU capacity significantly outpacing available resources [3] - The company has raised its contracted power target to 2.5 gigawatts by 2026, up from an earlier goal of 1 gigawatt, and expects to have between 800 megawatts and 1 gigawatt of capacity operational by the end of next year [3][5] - Nebius secured major contracts, including a five-year, $3 billion agreement with Meta and a deal with Microsoft valued between $17.4 billion and $19.4 billion [4] - The company aims for $7–$9 billion in annual recurring revenue by 2026 and plans to expand data-center operations in the U.K., Israel, and New Jersey, while also establishing new facilities in the U.S. and Europe [5] - Nebius has tightened its full-year revenue guidance to $500–$550 million, with adjusted EBITDA expected to turn slightly positive by year-end 2025 [7] - The company faces challenges such as rising operating costs, increased capital expenditure guidance from $2 billion-$5 billion, and execution risks associated with rapid expansion [6][7] Group 2: Microsoft Corporation (MSFT) - Microsoft has integrated AI capabilities across its product ecosystem, enhancing its competitive position in enterprise AI adoption [10] - The company plans to increase total AI capacity by over 80% this year and nearly double its overall data center footprint in the next two years [11] - Microsoft announced $23 billion in new AI investments, including a $17.5 billion commitment in India, emphasizing its focus on expanding cloud infrastructure [12] - For the second quarter of fiscal 2026, Microsoft expects revenues between $79.5 billion and $80.6 billion, reflecting a growth of 14% to 16% [13] - Microsoft is contending with competition from AWS and Google Cloud, as well as rising capital expenditure requirements for AI infrastructure [14] Group 3: Valuation and Performance - Nebius shares have decreased by 15%, while Microsoft stock has seen a slight increase of 0.1% over the past month [15] - Valuation metrics indicate that Microsoft appears undervalued with a VGM Score of B, while Nebius is considered overvalued with a Value Score of F [17] - In terms of Price/Book ratio, NBIS is trading at 4.46X compared to MSFT's 9.98X [18] - Analysts have revised earnings estimates downward for Nebius, while there has been a marginal upward revision for Microsoft [20][21] - Currently, Nebius holds a Zacks Rank 4 (Sell), while Microsoft has a Zacks Rank 3 (Hold), suggesting that Microsoft may be a better investment choice at this time [22]

Core Insights - The AI infrastructure market is projected to grow from $60.23 billion in 2025 to $499.33 billion by 2034, with a CAGR of 26.6% [2] - Companies like CoreWeave (CRWV) and Nebius Group N.V. (NBIS) are positioned as key players in the AI infrastructure space, focusing on GPU-based cloud services [1][3] CoreWeave (CRWV) - CRWV has experienced a 134% year-over-year revenue increase in Q3, driven by strong demand for its AI cloud platform and a robust backlog of $55.6 billion [5][7] - The company has secured significant contracts, including a multi-year deal with Meta worth up to $14.2 billion and an expanded partnership with OpenAI totaling approximately $22.4 billion [9] - Despite supply chain challenges affecting revenue guidance, CRWV remains confident in its operational agility and ability to scale infrastructure [4][10] Nebius Group N.V. (NBIS) - NBIS has raised its capital expenditure (CapEx) guidance to around $5 billion to expand its power capacity, but has faced delays that have lowered its 2025 revenue outlook to $500–$550 million [7][12][13] - The company has secured major contracts with Meta and Microsoft, valued between $3 billion and $19.4 billion, enhancing its revenue visibility [15] - NBIS is focused on expanding its data center capacity and enhancing its enterprise portfolio, with ambitious annual recurring revenue (ARR) goals of $900 million–$1.1 billion by the end of 2025 [13][15] Market Performance - In the past month, CRWV's stock has declined by 0.9%, while NBIS has seen a more significant drop of 12.6% [17] - Valuation metrics indicate that NBIS may be overvalued with a Price/Book ratio of 4.59X compared to CRWV's 9.63X, suggesting CRWV may be a more attractive investment option [18] Investment Outlook - Both companies are experiencing rapid growth, but CRWV currently leads in revenue generation and customer backlog, while NBIS is in a phase of aggressive expansion [22] - CRWV is viewed as a better investment option based on its stronger market position and growth potential, reflected in its Zacks Rank of 3 (Hold) compared to NBIS's 4 (Sell) [23]