re: Nebius - NBIS - AI Infrastructure Company

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Nvidia chose Nebius for agentic and inference and the market is beginning to understand.

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The market's "understanding" can be fleeting. Any stability we have will come once they recognize the obscene revenue and profits this growth company will produce. That's the universal language that investors understand.

I'm not sure the market understands why NVDA chose NBIS. They only understand that they did, and that's why we're up today. We may be down tomorrow, but this collaboration is going to help NBIS be more profitable down the road, and the stock price will eventually catch up when they realize that NBIS is not headed for capex armageddon...

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I'm not sure the market understands why NVDA chose NBIS. They only understand that they did, and that's why we're up today.

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You're absolutely right about this.

I was listening to Amit this morning on the way to work, and I consider him pretty damn knowledgeable on the overall market.
He had no clue.

He was wondering if IREN would be next for NVDA to invest in. Maybe??
But NOT in the same way.

Also, he owns NBIS and not IREN.

I made that assumption earlier, that they were getting more money on top of 60% capex, so thanks for clarifying.

Get this damn war over and Nebius will be over $200 in a matter of weeks.

The bull case here is pretty wild, especially if you factor in the Avride valuation. Europe is desperate for its own sovereign AI infrastructure, so the timing for their GPU cluster expansion in Paris and Finland is perfect.

It’s a crowded space with the big players, but having a specialized, "pure-play" AI cloud could carve out a massive niche if they execute.

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especially if you factor in the Avride

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And Clickhouse. And Toloka. And TripleTen.

And Tavily integration into the software platform.

Today is just a shifty market day. War, and whatnot.

Could expect some pullback after yesterday, but the market selloff is a drag, too.

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I'm sick of all the shite. This market should be poppin'

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As we were saying yesterday, the market doesn't see NBIS for what it is, yet. Even today, they articles were that NBIS stock was up because NBIS gave them $2B for a data center build out. A one time thing.

The thing that will change their mind is the next two earnings reports. I have said that I expect this to really take off in June/July. Like you said, this company will be profitable AND have $30B in revenue in a couple of years. At that point, I don't care how much in debt CRWV is...

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So how do I get out of my 4/17 $105 call that I sold lol? I almost bought to close a few weeks ago when the stock fell. Kicking myself now.

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You wait, you buy it back now, or you roll out in date and up in strike price for a similar price per contract, or possibly more premium received.

I would not sweat it too much with the current state of things (war, interested rates, etc.)

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I have always just let my options get assigned with a wheel strategy but I have a feeling this one is fixing to break out and run. My cost basis is $101.

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It's certainly running, and yes, it could run more.
Arete upgraded Price Target from 211 to $291