Nebius: Potential European AI Darling

(7min)

Summary

  • Nebius Group N.V., a leading AI infrastructure company in Europe, is attractively priced after a nearly 50% stock slump amid booming ARR growth projections.
  • The company is well-positioned for a European boost, with significant investments in data centers across Europe and expansion plans in the U.S.
  • Despite missing Q4 targets, Nebius reported 466% revenue growth and has ambitious ARR goals, aiming for up to $1 billion by December 2025.
  • With a strong cash balance and backing from major investors like Nvidia, NBIS stock is a compelling buy at just 7x 2026 revenue targets.
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EU and AI legislation

J Studios

Nebius Group N.V. (NASDAQ:NBIS) is a leading AI infrastructure company ideally positioned in Europe. The stock has slumped nearly 50% from the highs in the recent AI sell-off, while the company guided to booming ARR growth. My investment thesis

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Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NBIS over the next 72 hours. 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.

The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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