We came across a bullish thesis on Nebius Group N.V. on MVC Investing’s Substack by M. V. Cunha. In this article, we will summarize the bulls’ thesis on NBIS. Nebius Group N.V.'s share was trading at $94.87 as of November 28th. NBIS’s trailing  P/E was 163.47 according to Yahoo Finance. Fermi (FRMI) Drops to All-Time Low Nebius Group NV, a technology company, engages in building full-stack infrastructure to service the global AI industry in the Netherlands, Europe, North America, and Israel. NBIS is the ...

Core Insights - Nebius, an AI cloud service provider, is launching a new product called "Token Factory" to enhance its market share in the AI sector by providing access to open-source models and the necessary computing power [1][2] - The Token Factory focuses on inference workloads, allowing customers to choose from leading open-source models like OpenAI's GPT-oss and Meta's Llama, while offering secure computing capabilities [1] - Nebius competes with cloud products from Amazon and Microsoft, with Microsoft recently agreeing to acquire AI computing capabilities from Nebius worth up to $19.4 billion [1] Company Overview - Nebius, based in the Netherlands, spun off from Russian internet company Yandex last year and has become a notable "new cloud service" provider, selling AI cloud service resources from data centers in the US, Europe, and Israel [2] - The company possesses one of the first publicly available clusters of NVIDIA's latest AI chips in Israel [2] - Nebius aims to attract more customers with a diverse product line rather than focusing solely on profit growth, as stated by co-founder and CBO Roman Chernin [2][3] Market Trends - There is a shift among AI application developers towards relying on powerful models from top AI labs, which are often closed-source or proprietary, leading to a demand for more flexible and cost-effective solutions [2][3] - Chernin noted that developers are moving away from closed ecosystems to adopt a more diverse product portfolio, which Nebius aims to provide through its scalable and reliable platform [3] Client Engagement - Early clients of Token Factory include Amsterdam-based tech company Prosus and AI video platform Higgsfield, with HuggingFace also utilizing Nebius's infrastructure for inference [3]