Core Viewpoint - The article discusses the potential rebound of AI infrastructure stocks, particularly Nebius Group, following its upcoming quarterly report, despite recent sell-offs in the AI sector due to investor concerns about business disruptions and heavy spending on AI data centers [1][2][3]. Company Overview - Nebius Group is a neocloud company that provides AI hardware and software solutions through dedicated data centers powered by accelerators from Nvidia and AMD. The company rents out its computing capacity for AI workloads and offers various managed software services [5]. - Nebius has secured significant contracts with major hyperscalers like Meta Platforms and Microsoft, totaling over $20 billion over the next five years, which positions it for long-term success [7][8]. Financial Performance - Nebius is projected to generate $550 million in revenue in 2025, reflecting a 368% increase from the previous year. Analysts expect revenue to rise more than sixfold in 2026, reaching nearly $3.5 billion [8][10]. - The company currently has a market capitalization of $22 billion and trades at a high valuation of 57 times sales, which is justified by its impressive growth and demand for AI infrastructure [11][12]. Market Dynamics - The demand for Nebius' AI infrastructure is currently exceeding supply, driven by large contracts with major clients. This demand is expected to continue, especially with Microsoft's substantial revenue backlog, which may lead to additional contracts for Nebius [7][9]. - The upcoming quarterly report on February 12 is anticipated to provide a solid outlook for Nebius, potentially leading to a stock price increase [10][11].

There was a lot of talk in 2025 that artificial intelligence (AI) was headed to a bubble. After all, the bears reasoned, there's no way that companies will continue to accelerate their spending on AI technology. Right? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » But now we have the answer, definitively. The AI run-up is just getting started. Amazon announced it would spend $200 bi ...

Core Insights - Nebius, an AI cloud computing service provider, has agreed to acquire Tavily, a startup specializing in proxy search services, to enhance its AI cloud platform [1] - The integration of Tavily's technology will allow Nebius to expand its software stack necessary for building and operating enterprise-level proxy systems [1] - The acquisition is expected to be completed in the coming weeks, with an initial payment of $275 million, potentially rising to $400 million based on specific milestones [1] Company Developments - Nebius aims to combine high-performance inference with real-time information sourcing to provide core building blocks for next-generation AI applications [1] - The acquisition will enable developers to focus on application development without managing multiple vendors, aligning with Nebius's strategy to offer an open platform for clients ranging from startups to large enterprises [2] - Tavily, founded in 2024, has offices in Tel Aviv, New York, and Abu Dhabi, and its CEO Rotem Weiss and approximately 30 employees will join Nebius to continue product development [1] Industry Outlook - The proxy AI market is projected to grow from $7.5 billion in 2025 to nearly $200 billion by 2034, indicating significant growth potential in the sector [2]

Stocks our strategists [music] feel are poised to deliver positive returns are featured now in their top stock picks of the week. Welcome to another edition of Top Stock Picks. I am Brian Boland.I'm the aggressive growth stock strategist here at Zachs and I have a top stock pick for this week. It's a company that's reporting earnings on February 12th before the market opens. So that's uh that's important.It's before the market opens. So look for it for a big move that day. Uh the name of the stock is Nbius ...

Core Insights - Amsterdam-based cloud computing company Nebius is acquiring agentic search provider Tavily for approximately $275 million, aiming to enhance its AI cloud platform with real-time search capabilities [2][7]. Company Strategy - The acquisition is part of Nebius's strategy to create a unified platform for vertical AI companies and enterprises to develop, tune, and operate autonomous agents [3]. - By integrating Tavily's agentic search into its existing platform, Nebius is expanding the software stack necessary for developers to build enterprise-grade agentic systems [3][7]. Market Context - The acquisition occurs amid a rapid increase in enterprise adoption of agentic AI, with a significant shift from passive interest to active implementation among U.S. businesses [9][10]. - Research indicates that as of November, nearly 1 in 4 Chief Product Officers (CPOs) reported piloting or fully using agentic AI, a substantial increase from just 3% in August [11]. Future Outlook - Tavily's team, including its Founder and CEO Rotem Weiss, will join Nebius while continuing to operate under its own brand, indicating a commitment to maintaining its current customer base [8]. - Weiss highlighted the potential of agentic search as a multi-billion-dollar opportunity, suggesting that the market is poised for exponential growth as enterprises increasingly deploy autonomous AI systems [8].

Group 1: AI Market Growth - Investors are focusing on artificial intelligence (AI) stocks as companies transition from training models to applying them in solving complex problems, a phase known as inference, which is expected to drive growth in the coming years [1] - Demand for capacity to support AI training and inference is surging, leading customers to choose between large cloud providers like Alphabet and smaller specialized companies [2] Group 2: Nebius Overview - Nebius offers a range of services including managed services for Kubernetes and access to GPUs and CPUs, positioning itself as a comprehensive resource for AI needs [4] - In the latest quarter, Nebius reported a revenue increase of over 300% and sold out all its capacity, highlighting strong customer demand [4] - The company secured significant deals, including a $19.4 billion infrastructure agreement with Microsoft and a $3 billion deal with Meta Platforms [4] Group 3: Investment Challenges for Nebius - Nebius faces the challenge of needing to invest heavily to meet rising demand, recently raising over $4 billion through convertible notes and equity offerings to expand its infrastructure [5] Group 4: CoreWeave Overview - CoreWeave specializes in providing access to high-powered Nvidia GPUs for AI workloads and was the first to make Nvidia's Blackwell platforms available [6] - Nvidia has a significant investment in CoreWeave, with over 85% of its portfolio allocated to this AI cloud specialist, indicating Nvidia's confidence in CoreWeave's potential [7]

Core Insights - Nebius has announced an agreement to acquire Tavily, enhancing its AI cloud platform with agentic search capabilities, which is crucial for the rapidly growing agentic AI market [1] - The acquisition aims to create a unified platform for enterprises to build and operate autonomous AI agents, integrating real-time search infrastructure into Nebius's existing offerings [1] - The agentic AI market is projected to grow significantly, from approximately $7 billion in 2025 to between $140 billion and $200 billion by the early 2030s, indicating a compound annual growth rate exceeding 40% [1] Company Overview - Nebius is positioned as an AI cloud company focused on providing a full-stack platform for developers and enterprises to manage their AI initiatives, from data and model training to production deployment [1] - The company is listed on NASDAQ (NASDAQ: NBIS) and is headquartered in Amsterdam, serving a diverse range of clients including startups and Fortune 500 companies [1] Acquisition Details - The acquisition of Tavily will allow Nebius to enhance its software stack, providing developers with the necessary tools to create enterprise-grade agentic systems without relying on multiple vendors [1] - Tavily's technology will complement Nebius's existing offerings, particularly the Nebius Token Factory, which provides high-performance inference for AI agents [1] - The transaction is expected to close in the coming weeks, although the transaction value has not been disclosed [1] Market Potential - The agentic AI market is anticipated to see exponential growth as enterprises increasingly deploy autonomous AI systems, with Tavily's agentic search representing a critical capability in this landscape [1] - Tavily has achieved over 3 million monthly SDK downloads and serves a developer community of more than one million users, indicating strong product-market fit [1] - Major clients of Tavily include Fortune 500 companies such as IBM, showcasing its relevance across various industries including financial services and logistics [1]

Core Insights - The individual has a decade of experience in a Big 4 audit firm, focusing on banking, mining, and energy sectors, which provides a strong foundation in finance and strategy [1] - Currently serves as the Head of Finance for a leading retail real estate owner and operator, overseeing complex financial operations and strategy [1] - Active investor in the U.S. stock market for 13 years, with a portfolio that reflects a balanced approach, emphasizing value stocks while maintaining exposure to growth opportunities [1] - Investment philosophy is based on thorough research and a long-term perspective, aiding in navigating various market cycles successfully [1] - Aims to uncover promising under-the-radar stocks that may not be recognized by the broader market, leveraging a background in auditing and finance [1]

Core Insights - The article emphasizes the importance of investing in AI infrastructure companies, referred to as "pick-and-shovel plays," which are expected to benefit from the rapid growth of artificial intelligence and high-performance computing [1] Group 1: AI Infrastructure Companies - Companies like Nebius Group (NBIS), IREN (IREN), Astera Labs (ALAB), TeraWulf (WULF), and Cipher Mining (CIFR) are positioned to profit regardless of which AI model prevails, offering stable revenues and broad industry exposure [1] - Nebius Group is projected to experience a remarkable revenue growth of 5x by 2026, indicating strong market potential [7] Group 2: AI Capital Expenditure Trends - Hyperscaler capital expenditure (CAPEX) is forecasted to increase from $390 billion in 2025 to $515 billion in 2026, reflecting a significant rise in AI-related spending [2][3] - AI spending now constitutes over 2% of GDP, surpassing historical investments in railroads during the 1850s, highlighting the critical role of AI in the economy [2] Group 3: Productivity and Market Dynamics - The proliferation of AI technology has led to a 30% increase in coding productivity, countering skepticism regarding the return on investment in AI [9][11] - Companies are transitioning from capital-intensive models to high-margin operations, as seen with IREN's shift to a GPU-as-a-Service model, resulting in gross profits rising from under $200 million to $600 million [12] Group 4: Market Sentiment and Technical Analysis - A bullish shakeout pattern has been observed in stocks like NBIS, where prices briefly fell below key support levels before rebounding, indicating potential for future price increases [13] - The current market environment presents a unique opportunity for investors to focus on AI infrastructure providers, minimizing the uncertainty associated with software competition in the AI sector [15]

Core Insights - Nebius Group N.V. (NBIS) is set to report its fourth-quarter 2025 results on February 12, with a consensus estimate indicating a loss of 44 cents and total revenues of $232.2 million [1][5]. Company Overview - Nebius is an Amsterdam-based company specializing in artificial intelligence (AI) infrastructure, focusing on an AI-powered cloud platform for intensive AI and machine learning workloads [2]. - The company is enhancing its enterprise offerings with the launch of the Aether 3.0 cloud platform and the Nebius Token Factory, aimed at running open-source models at scale [2]. Recent Developments - Nebius announced the deployment of the NVIDIA NVDA Rubin platform across its AI Cloud and Token Factory, positioning itself as a leader in next-generation AI capabilities [3]. - The company is aggressively expanding its global data center footprint, launching new facilities in Israel and the U.K., and planning further expansions in Finland, New Jersey, and other locations [6][7]. Financial Performance and Projections - Analysts have revised earnings estimates upward for NBIS, with an Earnings ESP of +63.64% and a Zacks Rank of 3 [4]. - Nebius is expected to generate significant revenue from contracts with Microsoft and Meta, with anticipated contributions starting in Q4 2025 [8]. Market Conditions - The company operates in a supply-constrained AI infrastructure market, with demand for GPU capacity exceeding available resources [7]. - Nebius has raised its contracted power target to 2.5 gigawatts by 2026, up from an earlier projection of 1 gigawatt [7]. Challenges - Nebius faces macroeconomic uncertainties, rising operating expenses, and heavy capital spending, with capital expenditure outlook raised from approximately $2 billion to about $5 billion for 2025 [9]. - The company has adjusted its 2025 revenue outlook downward to a range of $5.05–$5.15 billion [9][10]. Stock Performance - Nebius shares have increased by 118.9% over the past year, outperforming the Zacks Computer & Technology sector and the S&P 500 [11]. - However, the stock is considered to have a stretched valuation, trading at a Price/Book ratio of 4.51X compared to the industry average of 3.41X [14]. Investment Considerations - While the demand for AI cloud services and data center expansion is promising, the high capital expenditure and stretched valuation raise concerns for potential investors [17].