Nebius Group N.V. remains a high-conviction AI-native cloud infrastructure play, with shares more than doubling since our last buy call. NBIS commands a premium valuation due to explosive 684% revenue growth, margin expansion, and pivotal positioning in AI hyperscaler capex cycles. Significant risks include ongoing dilution from share issuance, convertible debt, and share-based compensation, alongside potential future slowdowns in AI capex.
Nebius Falls: Hyperscalers Are Hyperscaling
Source: Seeking Alpha