Nebius Group NASDAQ:NBIS has become one of the most exciting small-cap projects in the AI infrastructure space. The company’s shares are up nearly 45% over the past week, bringing year-to-date gains to an impressive 64%. The rise comes after the company announced a $700 million private placement with high-profile investors including NVIDIA. NASDAQ: NVDAAccel and other institutional sponsors. The investment not only injected fresh capital into Nebius, but also strengthened its position as a trusted player in the fast-growing artificial intelligence sector, attracting the attention of both retail and institutional investors.
Nebius Group today
(As of 12/6/2024 6:15 PM ET)
- 52 week range
- $14.09
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$36.84
A transformative game in artificial intelligence infrastructure
Nebius develops cutting-edge AI-focused infrastructure, including GPU clusters, cloud platforms, and tools for machine learning applications. Its offerings include Toloka AI, a solution supporting every stage of the GenAI lifecycle, Avride, an autonomous mobile platform for ride-hailing and logistics, and TripleTen, an EdTech service focused on equipping students with essential STEM skills.
Nebius, based in Amsterdam and led by former Yandex CEO Arkady Volozh, returned to the market in October 2024 after spinning off Yandex’s Russian assets in a deal valued at $5.4 billion. This strategic pivot has allowed the tech company to shed geopolitical risks and position itself as a global player to compete with tech giants like Amazon. NASDAQ: AMZN and Microsoft NASDAQ: MSFT.
Recent Catalysts Promote NBIS
NVIDIA’s participation in Nebius’ $700 million funding round is a powerful endorsement of its growth potential. This capital will allow Nebius to scale its GPU clusters, which is critical to AI deployments. The announcement also drew praise from Citron Research, which called Nebius “the future darling of Wall Street in artificial intelligence,” highlighting its underappreciated potential compared to competitors such as CoreWeave. Citron estimates the stock could reach $60 per share, which represents significant upside from current levels.
Operationally, Nebius is pursuing an ambitious expansion strategy. The company recently launched a GPU-based data center in Kansas City, and another facility in the US is in advanced stages of planning for 2025. The firm also has a large-scale data center in Finland, underscoring its strategy of building bi-continental infrastructure to support a growing economy. global demand for AI.
Ready to implement growth plans
Nebius plans to invest $1 billion in AI infrastructure by 2025, leasing capacity to businesses looking to scale their AI operations. The company recently raised its revenue guidance, projecting annual revenue of $750 billion to $1 billion by the end of 2025, up from previous estimates of $500 billion to $1 billion. With cash reserves of nearly $2 billion and minimal debt, Nebius is financially positioned to effectively implement its growth plans.
Should you invest before Wall Street gives notice?
The company currently lacks analyst coverage, making it an intriguing opportunity for early investors. NVIDIA’s strategic investments and Citron’s bullish outlook suggest the company is well positioned to capitalize on growing demand for artificial intelligence infrastructure. While challenges remain, including its loss-making status and competition from established giants, Nebius’ financial strength, rapid revenue growth and presence in one of the market’s hottest sectors make it an attractive option for investors willing to take some risk.
The stock’s recent 6% pullback from 52-week highs could be a timely entry point for those looking to get into the AI race before broader institutional acceptance. For a conservative investor looking to take a small speculative position, a reasonable approach may be to wait for the price to return to previous resistance around $25. If this key area holds as newfound support, it will indicate that buyers have moved higher and the stock is in line with a new uptrend.
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