Nebius - NBIS - AI Infrastructure Company

I did so much damn reading and copy/pasting on this stock last night that dammit, y'all are getting a thread!



I stated this yesterday, then I did a lot of copy/pasting:

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I think I'll be adding NBIS to my retirement account soon.
This could be huge.
Look into the CEO, Arkady Volozh.
This may be my no. 1 pick for 2025.

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WEBSITE

Now, I am long 330 shares. My average is $29.94

ABOUT NEBIUS

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Nebius is a technology company building full-stack infrastructure to service the explosive growth of the global AI industry, including large-scale GPU clusters, cloud platforms, and tools and services for developers. Listed on Nasdaq (ticker: NBIS), Nebius is growing a global footprint with hubs across North America, Europe and Israel.

Nebius’ core business is an AI-centric cloud platform built for intensive AI workloads that gives AI builders the compute, storage, managed services and tools they need to build, tune and run their models. A preferred cloud service provider in the NVIDIA Partner Network, Nebius’s team of around 400 skilled engineers delivers a true hyperscale cloud experience tailored for AI builders.

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Additional: NBIS has a market cap of just over 7 bn and a cash position of upwards of $10/share or 2.4 bn.
Yes, the CEO is Russian. He essentially lost his previous company, Yandex, due to the Russian invasion of Ukraine. He IPO'd Yandex in 2011 at a valuation of 1.4bn, which was essentially the Google of Russia and proceeded to grow the company to 30 bn until things fell apart.

After he and his company received sanctions he moved to Israel and renounced his Russian citizenship so that sanctions could finally be lifted two years later. He spun off his company for 5.4 bn and invested 90% of his personal wealth into NBIS, which was listed on the NASDAQ last fall. Think Pheonix rising from the ashes. This is a good and well respected CEO. Just ask Jenson Huang.
They are now in Amsterdam and are on their way to becoming the largest AI Infrastructure provider in Europe. They have recently expanded into the US as well (see pic below).
Remember, they have a lot of cash, and they plan on using it!

From Q3 earnings:

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The customer base expanded to over 40 managed clients in Q3 2024, up from 30 in Q2, with additions from the Fortune 500.
Nebius began executing its plan to invest over USD 1 billion(2) in AI infrastructure across Europe by mid-2025. In September 2024, Nebius announced the launch of a GPU cluster in Paris, which will become one of the first in Europe to feature NVIDIA H200 Tensor Core GPUs. Shortly afterwards, Nebius announced a major expansion of its data center in Finland to triple capacity to 75 MW by the end of 2025 or early 2026. This will enable Nebius to accommodate up to 60,000 GPUs(3) at this location alone, with annual revenue potential of over USD 1 billion at full capacity utilization.(4)

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Y'all get the picture. I'm going to let others tell the rest of the tale, or at least their version.

But first, a published valuation model:


This comes from a 6 December 2024 write up from Crossroads Capital entitled From Russia with Cash.

There is currently NO Wall Street analyst coverage on this stock. It's early.


US Expansion. A GPU Cluster in Kansas City that will house NVDIA's Blackwell Platform after a recent 700 million dollar investment from NVDA.


Now for the fun stuff...