Nebius Stock: A Software Company The Market Insists On Renting Out (NASDAQ:NBIS) | Seeking Alpha
HomeStock IdeasLong IdeasTechSummaryNebius Group is rated a buy with 15-20% upside, driven by a shift from GPU rental to full-stack AI cloud ownership. NBIS posted 840% AI cloud revenue growth and a 45% EBITDA. . .
HomeStock IdeasLong IdeasTechSummaryNebius Group is rated a buy with 15-20% upside, driven by a shift from GPU rental to full-stack AI cloud ownership. NBIS posted 840% AI cloud revenue growth and a 45% EBITDA margin, signaling a successful transition to higher-margin, software-driven offerings. Anchor contracts with Meta and Microsoft underpin a $20-25B capex plan, securing funding and reducing demand risk while building a structural moat with 4 GW of contracted power. Despite customer concentration and financing risks, NBIS's rapid growth, premium positioning, and strong backlog support a re-rating and continued outperformance. Trevor Williams/DigitalVision via Getty ImagesThesisThere is a lot of focus on GPU counts and capex burn when it comes to Nebius Group (NBIS), which is warranted given the scale of the buildout. But most of this commentary268 FollowersAnalyst’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. 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.