D.A. Davidson & Co. analyst Alexander Platt initiated coverage on Nebius Group N.V. NBIS with a Buy rating and a price forecast of $50.
It's been a rollercoaster start to the year for shares of Nebius Group NASDAQ: NBIS. The AI infrastructure stock has seen dramatic swings, hitting new 52-week and all-time highs, only to retreat sharply following its recent earnings report.
Nebius: The Earnings Miss Shouldn't Bother You
The artificial intelligence (AI) revolution is upon us, and its progress hinges on a critical, often overlooked foundation: robust and scalable infrastructure. The demand for this specialized infrastructure is exploding, creating a massive investment opportunity.
Investors are curious about Nebius Group (NBIS -9.07%) stock after Nvidia (NVDA -3.09%) announced it owned a stake in the AI company.
Nebius (NBIS -9.07%) delivered big news to investors by elaborating on its 2025 plans.
Last year, shares of a small artificial intelligence (AI) stock called SoundHound AI witnessed an unprecedented rise. While SoundHound AI's voice recognition technology is an exciting pocket of the AI realm, the main contributor to the company's outsized price movement was linked to a strategic investment by Nvidia.
Investors thinking capital spending to build artificial intelligence (AI) infrastructure will continue to soar were thrown a curveball earlier this year. China's privately held DeepSeek announced its new R1 large language model (LLM) cost only $6 million to build, and big AI tech stocks plunged.
Nebius Group N.V. is an AI infrastructure firm, recently reintroduced to the market after splitting from Yandex and shedding Russian ties. The company operates globally, offering AI-centric cloud platforms and full-stack infrastructure, including large-scale GPU clusters and tools for developers. Q4 Earnings were a mixed catalyst, but there was a clear growth narrative present in the report.
In this video, I will cover Nebius Group's (NBIS -4.22%) recent earnings report and comments from management during the call. Watch the short video to learn more, consider subscribing, and click the special offer link below.
First public buy rating on Nebius Group N.V., following a buy at the author's investing service. Despite 'missing' revenue estimates, Nebius Group's core AI infrastructure business grew 602% year-over-year, with total revenue increasing 466% annually. The company is cash-rich with $2.45 billion, enabling continued expansion; ARR expected to reach up to $1 billion by year-end 2025.
Nebius Group N.V.'s Q4 report shows revenue hitting $37.9M, a 5.65x YOY increase, and improved EBITDA loss. The firm raised $700M from top-tier partners, ensuring sufficient cash reserves, and targets $750M-$1B ARR by December 2025. The firm has a cash pile of $2,449.6 million, its EBITDA loss is about $266.4 million for FY2024 (and trending lower.) No additional capital is required now.