Why Nebius Is A High-Conviction Play
Summary
- Nebius reported 600% AI cloud revenue growth YoY, with Q4 2024 revenue surging 466% to $37.9M.
- A $700M oversubscribed funding round included Nvidia, Accel, and Orbis, reinforcing confidence in Nebius’s AI cloud expansion.
- Plans to deploy 22,000 Nvidia GPUs by 2025, positioning Nebius as a cost-effective alternative to AWS and CoreWeave.
- Burning $1.1B annually, but $2.45B in cash reserves provides a 2-3 year runway to achieve $1B+ ARR in 2025.
- With a $7B market cap vs. CoreWeave’s $23B, NBIS stock could double or triple if it scales successfully in the AI cloud race.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NBIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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