Nebius Group Nasdaq:NBIS It has emerged as one of the most exciting small companies in the AI infrastructure space. Over the past week, its stock has risen nearly 45%, pushing year-to-date gains to a staggering 64%. This rise comes after the company announced a private placement worth $700 million with the participation of prominent investors, including NVIDIA. Nasdaq: NVDAand Accel and other institutional backers. This investment not only injected new capital into Nebius, but also strengthened its position as a credible player in the rapidly expanding AI sector, attracting the attention of retail and institutional investors alike.
Nebius Group Today
(As of 6/12/2024 at 08:54 PM ET)
- 52 week range
- $14.09
▼
$36.84
A transformative play in AI infrastructure
Nebius develops cutting-edge AI-centric infrastructure, including GPU clusters, cloud platforms and tools for machine learning applications. Its offerings include Toloka AI, a solution that supports every stage of the GenAI lifecycle, Avride, an autonomous mobility platform for passenger transportation and logistics services, and TripleTen, an EdTech service focused on equipping students with essential STEM skills.
Headquartered in Amsterdam and led by former Yandex CEO Arkady Voloz, Nebius returned to the market in October 2024 following the spin-off of Yandex’s Russian assets in a $5.4 billion deal. This strategic pivot has allowed the tech company to deflect geopolitical risks and position itself as a global player competing with tech giants like Amazon Nasdaq: AMZN And Microsoft Nasdaq: MSFT.
Recent catalysts drive NBIS
NVIDIA’s participation in Nebius’ $700 million funding round is a strong endorsement, underscoring its growth potential. This capital will enable Nebius to scale its GPU portfolios, which is critical to AI deployment. The announcement also received praise from Citron Research, which referred to Nebius as a “future AI darling on Wall Street,” highlighting its underappreciated potential compared to competitors like CoreWeave. Citron estimates the stock could reach $60 per share, a significant rise from current levels.
Operationally, Nebius is implementing an ambitious expansion strategy. It recently launched a GPU-powered data center in Kansas City, with another US-based facility in advanced planning stages for 2025. The company also maintains a large-scale data center in Finland, underscoring a bi-continent infrastructure strategy to support ramping growth. Global demand for artificial intelligence.
Positioned to implement growth plans
Nebius plans to invest $1 billion in AI infrastructure by 2025, leasing the capabilities to organizations looking to scale their AI operations. The company recently raised its revenue guidance, forecasting an annual revenue run rate of between $750 million and $1 billion by the end of 2025, up from previous estimates of $500 million to $1 billion. With approximately $2 billion in cash reserves and minimal debt, Nebius is in a financial position to effectively execute its growth plans.
Should you invest before Wall Street notices?
The company currently lacks analyst coverage, making it an interesting opportunity for early investors. NVIDIA’s strategic investment and Citron’s bullish outlook indicate that the company is well positioned to benefit from the increase in demand for AI infrastructure. While challenges remain, including its unprofitable position and competition from established giants, Nebius’ financial strength, rapid revenue growth, and presence in one of the hottest market segments make it a compelling choice for investors willing to take some risk.
The stock’s recent 6% pullback from its 52-week highs could represent a timely entry point for those seeking to enter the AI race ahead of broader institutional recognition. For a conservative investor looking to initiate a small speculative position, a wise approach may be to wait until the price rebounds to previous resistance near $25. If this key area remains as new support, it indicates that buyers have rallied and the stock is in line with a new uptrend.
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