Nebius Group: My Biggest AI Portfolio Position

On the Pulse
14.66K Followers

Summary

  • Nebius Group is riding explosive AI infrastructure demand, posting 385% YoY sales growth and targeting $1B annual recurring revenue this year.
  • Despite current losses, Nebius has a clear path to EBIT profitability and aims for 20-30% EBIT margins, supporting a strong re-rating potential.
  • Valuation is justified by Nebius’ faster growth, versus peers like Nvidia, with a 10-12x 2026e sales multiple reflecting its intrinsic value.
  • I see a compelling risk/reward: Nebius is my largest AI position, with multi-year sales and profit runway as AI server demand accelerates.

Glass brain with connectors

Jonathan Kitchen

Nebius Group N.V. (NASDAQ:NBIS), a high-growth data center startup from the Netherlands, has captured the imagination of investors as of late with its break-neck speed of growth and expansion in the AI infrastructure market. Nebius Group is poised to

This article was written by

14.66K Followers
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

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.

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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