Nebius Vs. Navitas: Two Nvidia Darlings With Diverging AI-Driven Fortunes

Summary

• Nebius and Navitas, despite catering to different industries, have emerged as market AI favourites, reinforced by their respective tie-ups with AI juggernaut Nvidia.
• Both stocks have experienced multifold appreciations in the LTM, with Navitas most recently catching up after disclosing it's become a key power supplier for Nvidia's next-generation 800V HVDC architecture.
• Yet fundamentals remain the key driver of premium valuations. With both stocks diverging on this aspect, only one is poised to excel from current levels.
• The following analysis will dive into the drivers of each of Nebius and Navitas' AI-driven upsurges and dissect the fundamental strength of each to gauge their respective valuation outlooks.

Oselote

Navitas (NASDAQ:NVTS) and Nebius (NASDAQ:NBIS) have emerged as AI-winning investments this year. Although both companies operate across different components of the AI value chain, both have captured increasing investor attention due to their respective associations with industry leader Nvidia (

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.