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Nebius: AI Discount Bin

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Updated - March 11, 2026

Nebius has bounced back above $105 on the NVDA investment deal and strong earnings from Oracle. The neocloud stocks finally look ready for a breakout rally. 

-Nvidia (NVDA) will invest $2B in Nebius (NBIS), and the two companies have formed a strategic partnership to develop and deploy the next generation of hyperscale cloud for the AI market.

-Shares of Nebius jumped about 10% premarket on Wednesday, while Nvidia was largely flat.

-The Dutch AI infrastructure provider said the partnership will help it deploy more than 5 gigawatts of Nvidia systems by the end of 2030.

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Finviz Chart

Original article posted on Feb. 15

  • Nebius Group N.V. reported a strong ending ARR total, but the market is stuck focused on short-term revenue hiccups.
  • NBIS is positioned as an AI cloud leader, suggesting strong long-term growth potential with a '26 ending ARR of $7 billion to $9 billion.
  • The AI cloud company will have less than 50% of '26 ARR from the hyperscalers, providing solid diversification and reduced counterparty risk.
  • The stock trades at 3x '26 ending ARR and less than 1x the ARR estimate for the targeted power capacity.
Nebius Group N.V. (NBIS) announced a strong quarter to end 2025, yet the stock initially dipped. The market no longer respects the progress being made by an AI cloud leader, likely due to a misperception of contracted power. My investment thesis remains ultra bullish on the stock after several months of the AI cloud leader trading sideways while the story improves.


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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