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$NBIS UBS fireside was very reassuring. CRO Marc Boroditsky clearly said it “We are building a Hyperscaler” 🎯💥 “Two thirds of the opportunity for the next 3-5 years will be servicing in the enterprise level but Nebius is going for all segments”✅ “some customers are doubling every 6-8 weeks & inference is growing on a monthly basis 40% more than Capex investment. The demand is there”🟢 “Very conscious of shareholders to minimize dilution. The subs will help create added value. Our deals bring 20-30% EBIT margin” 📈

$NBIS With headlines of $NVDA crushing numbers & CEO Jensen Huang putting the AI bubble talk to rest for good... now the fun resumes. Our NEBIUS thesis remains unchanged in fact it got even better. Could $NBIS be the best stock to own for the next decade of AI Expansion? NEBIUS explosive performance in the third quarter demonstrates how the company is benefiting from explosive demand for AI-optimized computing capacity. Revenue rose 355% year over year to $146 million. Its core AI infrastructure business accounted for nearly 90% of total revenue, and grew 400%. NEBIUS pre-sells GPU capacity as soon as it becomes available, and management has emphasized that its growth has been limited only by available capacity, not demand. The annualized revenue run rate for its core infrastructure business was $551 million at the end of the third quarter. Profitability is also moving in the right direction, as the adjusted margin of the core infrastructure business reached 19% based on earnings before interest, taxes, depreciation, and amortization. That was an impressive performance considering that the company is investing aggressively in new data centers and GPU deployments. Mega-deals NEBIUS' multiyear, multibillion-dollar deals for computing capacity with Microsoft and Meta Platforms have dramatically increased the credibility, scale, and visibility of its data centers. The company has entered into a $17.4 billion, five-year deal with Microsoft, and that value can expand to $19.4 billion if Nebius can provide it with added service capacity. It has also entered into a $3 billion deal with Meta Platforms and plans to deploy the required data center capacity by the end of 2025. The company noted that its limited available capacity constrained the deal's value. While the Microsoft deal isn't expected to reach its full annual revenue run rate until 2027, the Meta deal will be mostly at its full annual run rate in 2026. For a company with a market capitalization of nearly $22.3 billion, contracts worth over $20.4 billion in total could have a dramatic impact on future share prices. Expanding its data center footprint As noted, limited capacity is the major constraint in NEBIUS' growth trajectory, but the company is working hard to reduce that bottleneck. It has plans to boost the amount of electrical power it has under contract to 2.5 gigawatts by the end of 2026. This will include connected power (power linked to fully-built data centers that are ready for use) of around 800 megawatts to 1 gigawatt (1,000 megawatts). Management is focused on expanding its data center footprint in the U.S., as well as in international markets such as Finland, Israel, and the United Kingdom. NEBIUS has increased its 2025 guidance on capital expenditures (capex) from about $2 billion to $5 billion. The company plans to allocate about 1% of its total capex to securing land and power, and nearly 18% to 20% to building data centers, including shells, cooling systems, and connected power. The remaining 80% or so of capex will be allocated for real-time GPU deployment, which is only undertaken in cases of contracted or visible demand. Hence, a significant chunk of Nebius' capital will not be blocked if the AI cycle cools down. However, the company will also have sufficient available capacity to ramp up if demand for AI-capable data center infrastructure continues to surge. The software stack NEBIUS has also strengthened its AI-optimized software stack by introducing the third version of its AI cloud platform, called Aether. This provides enterprises with security, compliance, identity, and administrative tools. It has also launched an inference platform called Nebius Token Factory to deploy open-source models at scale with guaranteed performance and transparent pricing. With the increasing frequency of AI inference workloads, Nebius Token Factory can help improve customer stickiness. A robust runway Nebius is exposed to the natural execution risks associated with heavy capital expenditures. The company has already announced plans to use corporate debt, asset-backed financing, and secondary equity sales to support its aggressive growth strategy. This will increase the company's overall debt, dilute current shareholders' equity, or both. Despite the risks, Nebius' growth runway is too impressive to ignore. The company is guiding for an annual run rate of $900 million to $1.1 billion by the end of 2025 and $7 billion to $9 billion by the end of 2026. That explosive forecast rise in revenue highlights the company's potential as it rapidly expands its data center capacity. Given that its offerings have the validation of major deals with tech sector giants, Nebius looks like the best stock to ride the next AI wave, especially for investors who can handle some short-term volatility.

🚨JUST IN: $NBIS JP Morgan $JPM has released 13F adding NEBIUS massively with another 526K shares. Total 1.37M ✅ shares or $154.32M Top #9 Institutional shareholder. 🐳