Nebius: A Top AI Investment Pick

The Asian Investor
29.07K Followers
(9min)

Summary

  • Nebius Group is capitalizing on AI market growth, raising $1.0B in convertible notes and posting 385% Y/Y revenue growth in Q1.
  • The AI start-up's recurring revenue business is surging, with management guiding for $750M-$1.0B run-rate revenue by year-end and positive adjusted EBITDA in the second half of the year.
  • Shares are trading at a similar valuation multiplier as Nvidia, despite a lack of profitability.
  • However, strong business momentum and AI tailwinds translate to upside potential for Nebius Group's valuation.
  • With generative AI spending surging and the company expecting to post positive adj. EBITDA in H2 2025, Nebius makes a strong investment case in the hot AI market.

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Nebius Group (NASDAQ:NBIS) just announced that it is raising $1.0B in convertible notes to support its growth strategy in the AI market. Nebius also reported strong first-quarter results last month that showed growing momentum in its core business of

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29.07K Followers
I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, 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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