Latest news with #Nebius
Time of India
21 minutes ago
- Business
- Time of India
Turf war in the clouds showers on the ground
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Indian data centre companies are looking to attract neocloud firms such as Coreweave , Lambda Labs, Crusoe and Nebius, which offer high-end computing for generative artificial intelligence training at nearly one-third the price of hyperscalers like Amazon Web Services, Google Cloud and Microsoft by large investors, neoclouds, or 'babyscalers'—boutique operators offering specialised infrastructure and flexible GPU rentals—are fast snagging business from Microsoft Azure, AWS and Google Cloud. A study by digital infrastructure consultancy Uptime Institute showed that the average hourly cost of an Nvidia DGX H100 GPU system from a hyperscaler was $98, while neocloud players offer it at about $34—a 66% attractive prices, along with cheap data centre space and power in India, make a powerful case for neocloud companies to invest here, industry experts said. Sharad Agarwal, CEO of Chennai-based data centre services provider Sify Infinit Spaces, said neocloud companies are watching the Indian market keenly, especially because of the world's lowest rack rentals and power costs here. Many neocloud operators evolved from Bitcoin mining, gaming and high-frequency trading backgrounds. As AI chips grew in demand post ChatGPT's release in 2022, these firms quickly amassed thousands of chips to offer on Wall Street financiers have created a lucrative debt market for the neocloud firms which use the funds to acquire thousands of Nvidia chips and further rent out on hourly/monthly usage neocloud firms are cash rich. Large private equity firms like Blackstone, Carlyle and BlackRock have pumped in $11 billion in this new cohort of companies. Coreweave made an impressive $23-billion debut on Nasdaq this to semiconductor research firm Semianalysis, besides the four neocloud leaders, there are 131 emerging players in the segment globally who offer GPU rentals at discounted Infinit Spaces has introduced a pay-per-use pricing model, offering power and rack space to neocloud companies deploying GPU clusters in India. 'Our pay-per-use pricing model is a disruptor to the data centre industry,' Agarwal said. 'Huge entry cost is a barrier for emerging cloud infra firms to expand in foreign markets, and hence this pricing structure could derisk companies' fixed cost.'Hiranandani Group's Yotta Data Services – which by itself is India's sovereign neocloud -- said it has listed 8000 Nvidia H100 GPUs on Nvidia's marketplace alongside Lambda Labs, Coreweave and Nebius to offer their GPUs-as-a-service. 'This shift from hyperscalers to AI-specialised clouds is not just a competitive realignment—it's critical for democratising access to high-performance compute and accelerating innovation,' said Sunil Gupta, cofounder, CEO and managing director of Yotta Data Services, which has deployed its own sovereign neocloud with IndiaAI Mission, NIC, and Group's Blackbox said it is tapping North America and Europe expansion of neocloud firms to provide cabling, design, and construction services, and participate in their 'multi-billion gigawatt-scale expansion.'Blackbox is also pursuing global rollouts of gigawatt-scale campuses of neocloud operators for a range of services. 'These include structured cabling, data centre design, and turnkey construction services for both greenfield and retrofit projects,' said Sanjeev Verma, president and CEO of Black current discussions are focused on North America and Europe markets, expansion in India is not a question of if, but when, Verma added. CtrlS Datacenters is also in early talks with neocloud firms 'to deploy GPU clusters in India, driven by increasing AI model training and inference workloads, especially in sectors like BFSI, healthcare and manufacturing,' said Ranjit Metrani, president, managed services, at CtrlS say it is the right time for India's infrastructure players to strike long-term partnerships with neocloud firms as the industry is growing rapidly and India is evolving to be one of the largest markets for AI use. 'Neocloud companies are gaining market share globally at an incredibly fast pace comparable to the early growth of hyperscalers,' said Jitesh Karlekar, director-research at real estate research and advisory firm JLL.'This is a fundamental shift in the cloud business model… Neocloud firms are architected for the AI-native era. They offer more specialised infrastructure, lower latency, flexible pricing, and are often better optimised for high-performance computing workloads.' Therefore, it is crucial for India's infrastructure players to catch on this momentum early,' he said.
Yahoo
a day ago
- Business
- Yahoo
Could Nebius Group Be a Sleeper Growth Pick?
Investment in artificial intelligence (AI) infrastructure is expected to reach nearly $7 trillion by next decade, according to McKinsey & Company. As demand for data centers, network equipment, and chips continue to rise, so does access to this infrastructure. Nebius Group offers a unique cloud-based solution for AI developers seeking access to high-performance AI training and inferencing compute power. 10 stocks we like better than Nebius Group › When it comes to investing in artificial intelligence (AI) stocks, some of the most common opportunities reside in software platforms and semiconductors. But one pocket of the AI realm that is steadily starting to gain some traction is infrastructure. Think of it this way: When cloud hyperscalers such as Amazon, Microsoft, or Alphabet each say they are spending tens of billions of dollars on AI capital expenditures (capex), only some of this spend is allocated toward chipsets and network equipment supplied by the likes of Nvidia, Advanced Micro Devices, or Broadcom. In the background, there are companies that are actually building the data centers and graphics processing unit (GPU) clusters in which they reside. This is where Nebius Group (NASDAQ: NBIS) comes into play. Let's explore what Nebius does and how the company is riding the tailwinds of rising AI infrastructure investment. Could Nebius be an under-the-radar opportunity for growth investors right now? Nebius operates across four segments. The company's core business is an infrastructure-as-a-service (IaaS) business -- essentially offering customers the ability to access high-performance compute architecture via the cloud. In addition, Nebius has three subsidiaries: Avride, Toloka, and TripleTen. Avride is an emerging force in the autonomous vehicle industry, and recently struck a partnership with global car manufacturer Hyundai. Toloka serves as a data partner for large language models (LLMs) and AI developers including Anthropic, Microsoft, and Shopify. TripleTen is a software platform marketed toward the education industry, which is another budding area where AI could lead to some transformative changes. While Nebius is a diversified business and positioned to benefit from AI in many different ways, most investors tend to focus on the company's infrastructure segment. The company works closely with Nvidia, allowing its customers to access a series of different GPU architectures. At the end of the first quarter, Nebius' IaaS business was operating at a $249 million annual recurring revenue (ARR) run rate. While this might not seem like much at first, consider this: Management is guiding toward an ARR run rate between $750 million and $1 billion by year-end, as well as positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). How is Nebius going to increase its core infrastructure segment by nearly fourfold over the next six months? For starters, the company's data center footprint is expanding rapidly. In addition to existing projects in France and Finland, the company is also building out new infrastructure in Iceland, Kansas City, and New Jersey. Moreover, these new data centers will be equipped with the most in-demand GPUs on the market -- of course, I'm talking about Nvidia Blackwell, Grace Blackwell, and Blackwell Ultra architectures. When you consider that major hyperscalers are on pace to spend more than $300 billion on AI capex just this year, coupled with industry forecasts calling for $6.7 trillion of infrastructure spend by next decade, Nebius appears to have strong secular tailwinds fueling its long-run growth narrative. When it comes to investing in Nebius, valuation is a little bit challenging, given the company's corporate history. Toward the end of 2024, Nebius was actually spun out of a Russian internet conglomerate called Yandex. As part of the deal structure, Nebius become an independent entity and listed on the Nasdaq exchange. Given the limited financial picture available to investors, I don't find traditional valuation metrics such as price-to-sales (P/S) or other ratios entirely helpful when looking at Nebius. Rather, I'd like to look at the company relative to some peers. One of the closest comparable public companies to Nebius is AI cloud infrastructure provider CoreWeave, which went public earlier this year. As the graph makes clear, not only does CoreWeave boast a much larger market capitalization than Nebius, but its value is actually expanding. Granted, there are reasons for this. CoreWeave is a much larger company than Nebius on the sales front, and the company continues to strike lucrative partnerships with AI's biggest developers. But even so, it's hard to deny CoreWeave's valuation momentum right now compared to the mundane price action in Nebius. To me, Nebius is flying under the radar -- completely overshadowed by CoreWeave's popularity. I see robust growth ahead for Nebius both in the short and long run, and I think the company's relationships with Nvidia and others in the AI landscape could lead to larger, more strategic deals over time. For these reasons, I would encourage investors looking for new growth opportunities in the AI space to consider a position in the infrastructure services pocket -- and particularly in Nebius. Before you buy stock in Nebius Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nebius Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, Nvidia, and Shopify. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, Nebius Group, Nvidia, and Shopify. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Could Nebius Group Be a Sleeper Growth Pick? was originally published by The Motley Fool Sign in to access your portfolio
Business Insider
4 days ago
- Business
- Business Insider
Nebius Stock (NBIS) Surges 20% Following a $1B AI Funding Round
Nebius (NBIS) stock caught the attention of an analyst and investors on Thursday after the cloud computing and digital infrastructure services company secured $1 billion in convertible notes. The funds gained from this will be used to develop the company's artificial intelligence (AI) capabilities. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter In addition to this, Nebius recently named Marc Boroditsky as its new Chief Revenue Officer. The company expects his leadership experience to help it with global expansion plans. He helped Twilio (TWLO) sextuple its paying customers and increase revenue more than tenfold over a five-year period. All of this positive news resulted in updated analyst coverage of NBIS stock. Arete analyst Andrew Beale initiated coverage of the company with a Buy rating and an $84 price target, suggesting a 74.67% upside for the shares. The analyst also highlighted Nebius as his preferred pick over CoreWeave (CRWV), which he rated Neutral with a $130 price target, due to its relatively low valuation. NBIS Stock Movement Today All of the attention on Nebius stock has resulted in strong movement on Thursday. Shares of NBIS were up 19.95%, extending a 73.25% year-to-date rally. The company's stock has also soared 107.97% over the past 12 months. Retail traders have also taken note of NBIS stock today with heavy trading of the shares. This saw some 28.32 million units traded, compared to a three-month daily average of about 9.99 million. Is Nebius Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Nebius is Strong Buy, based on three Buy ratings over the past three months. With that comes an average NBIS stock price target of $52.33, representing a potential 10.31% upside for the shares. This rating and price target don't include the new Arete coverage.
Yahoo
4 days ago
- Business
- Yahoo
Dollar Tree, Nebius, Palantir: Trending Tickers
Dollar Tree's (DLTR) stronger-than-expected first quarter results are sending the stock higher, despite warnings of expected tariff impacts in the second quarter. Nebius Group (NBIS) stock surges after the company announced it secured $1 billion for its artificial intelligence (AI) infrastructure plans. Palantir (PLTR) stock falls as the company's opportunity to help the US government collect data on Americans garners criticism from both sides of the political spectrum. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Taking a look now at our trending tickers. We're focusing on Dollar Tree and Nebius, both rising in share price. Palantir stock, on the flip side, is sinking. Let's start with Dollar Tree. It's seeing a good day of trading, following the company's announcement of a strong first fiscal quarter. Uh, the stock's on the rise throughout the day, working to reach pre-Wednesday numbers. It saw an 8% drop in the stock. Uh, the increase, by the way, coming despite warnings that the quarter two could be rough for Dollar Tree due to tariff-related uncertainties. So dropped 8% yesterday, more than making up for those gains today. And among other things, JP Morgan upgrading the stock to overweight from neutral. Um, and basically, with Matt Boss, who's a pretty influential retail analyst over there, saying that there were some positives within the report. Yeah. I mean, they did tell investors its Q2 profit looks like it could be down as much as 50% from a year ago, so as it's dealing obviously with these tariff impacts. Um, doesn't expect profit to reaccelerate though in the remainder of the year. Uh, saying most of it, most of its directly imported products are from China. Also, uh, selling the Family Dollar division, remember, for about a billion dollars. That looks like it's on track to close this quarter. But JP Morgan with the upgrade, that doesn't hurt. Yeah, exactly. So it fell after the earnings, rising after the upgrade. But it also saw some price target increases. So other analysts, obviously, thinking here that maybe some of the bad news is priced in. Um, JP Morgan's price target going to 111 from 72. Barclays raising its price target to 95, and Deutsche Bank going to 100 bucks on that stock. All right. Meanwhile, Nebius Group is also seeing some impressive gains today, potentially ending the session on an all-time high for that stock. So, uh, I did see reports here, Julie, on Nebius. It looks like they were initiated with a buy rating at a Reed Research. CoreWeave though gets a new neutral rating. It looks like the analyst preferring Nebius in part on valuation, saying the direction of stocks depending on whether or not investors think there's a shortage of GPUs. Interesting. And you know, CoreWeave has gotten a lot of attention obviously since its IPO. It has had huge gains since then. It's been, it is down in today's session, as we see this note. But guess what? Nebius is no slouch. The stock is up 78% year to date. It's up almost 150% over the past 12 months. This stock has been around for a lot longer though. It went public, um, more than a decade ago. So, um, you know, it's interesting to see that this, this sort of AI enthusiasm lit a fire, even under some things that have been around for a while. Yeah. Nebius, I had to read up on it, was it's based in Amsterdam. Apparently, this is a company spun out from the Russian internet giant, uh, Yandex. Bloomberg noting it has raised money from some a number of high profile investors, including Nvidia, by the way. Yes, exactly. And then let's talk about Palantir. That stock is seeing share prices dip in the red today after criticism about a possible plan struck between the company and President Trump, or at least the administration more broadly, and potential involvement in surveillance during former presidential administrations as well. The company won contracts from the Pentagon and Department of Homeland Security, and could potentially win contracts from the Social Security Administration and Internal Revenue Service. According to reporting out there, that could open the door to widespread consolidation of information. Um, a New York Times report, another contributing factor, um, perhaps to the drop today. But really then sort of the, uh, the catalyst if you will, was a report in Semafor that said that Republicans are now concerned about Palantir as well, and that the Republicans maybe aren't convinced that this is a signature priority of President Trump. So maybe they're a little more willing to go up against him on this. Yeah. We'll see. They have representative Warren Davidson, Republican of Ohio, telling Semafor it's dangerous. He's talking about this when you start combining all those data points on an individual into one database. It really essentially creates a digital ID. Um, where this goes from here, if anywhere, we'll see. It doesn't look like Palantir responded to Semafor with a comment there. Now the stock, I mean, listen, we're down today, but pull that chart back. I mean, what another yet another incredible year for this name. I mean, it's up more than 60% already this year. Yes. Of course. Of course. And we should mention they didn't respond to this particular Semafor report that we know of, but Alex Karp did give an interview today and lashed out against the New York Times report. Was highly critical of that. So they Yeah. Right. Yes. He was critical in only the way that Karp can be. Colorfully critical. Yes. Animated. They have not, there was a lot of gesturing. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Nebius Stock Soars 57% in a Month: Time to Hold or Book Profits?
Nebius Group N.V. NBIS shares have gained 57.3% over the past month, outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry's growth of 10.1% and 10.6%, respectively. The S&P 500 Composite is up 6.3% over the same time frame. Image Source: Zacks Investment Research The stock has risen 9.4% since it announced private placement of $1 billion in convertible notes on June 2. NBIS plans to utilize this to boost its global AI infrastructure footprint and drive up revenue opportunities in 2026. Despite the surge, NBIS stock is still trading 22.6% below its 52-week high and closed last trading session at $39.39. Investors are likely to contemplate what to do next, whether it is time to take profits or continue holding NBIS as the rally extends. Nebius posted 385% year-over-year revenue growth in the first quarter of 2025, driven by accelerating demand for its AI infrastructure services. Annualized run-rate revenue or ARR saw a 700% jump, highlighting a structurally expanding revenue base. ARR for April was $310, which provides a strong start for the second quarter. Nebius is carrying strong momentum into the second quarter of 2025 and remains confident in achieving its full-year ARR guidance of $750 million to $1 billion. For 2025, the company also reaffirmed its overall revenue guidance of $500 million to $700 million. Nebius Group N.V. price-consensus-eps-surprise-chart | Nebius Group N.V. Quote To gain a larger share of the AI cloud compute market, NBIS is focusing on technical enhancements that increase reliability and reduce downtime to boost customer retention. In the first quarter, Nebius significantly upgraded its AI cloud infrastructure through improvements to its Slurm-based cluster. These enhancements included automatic recovery for failed nodes and proactive system health checks designed to identify issues before they impact jobs. This directly lowers downtime and boosts capacity availability. According to the company, these changes led to an estimated 5% improvement in the availability of nodes for commercial use. Nebius is making substantial investments in improving its object storage capabilities, and the upgraded storage system ensures that big data sets can be easily accessed and saved quickly during model training, directly lowering time-to-result for end users. NBIS successfully graduated multiple platform services like MLflow and JupyterLab Notebook from beta to general availability. Nebius expanded integrations with external AI platforms like Metaflow, D Stack and SkyPilot, enabling customers to migrate tools with nominal friction. Nebius is deepening ties with industry giants, particularly NVIDIA Corporation NVDA, an investor in the company. Nebius will be one of the first AI cloud infrastructure platforms to offer the NVIDIA Blackwell Ultra AI Factory Platform and become a launch partner for NVIDIA Dynamo. It will also support the DGX Cloud Lepton marketplace at launch, a significant channel expansion opportunity. Nebius is focusing on building a global footprint, with capacity in the United States, Europe, and the Middle East. It added three new regions, including a strategic data center in Israel, in the last reported quarter. Infrastructure enhancement helps reduce latency, diversify risk, and extend support for global customer requirements, which is crucial for enterprise AI workloads. Apart from its core cloud platform, other notable offerings by Nebius include Toloka, an AI development platform; TripleTen, an edtech service; and Avride, an autonomous vehicle platform. NBIS holds stake in Toloka, which is now backed by Amazon's AMZN Jeff Bezos and Shopify's Mikhail Parakhin. This investment marks a key milestone in Toloka's growth, enabling it to scale rapidly and enhance its focus as global demand for high-quality AI data continues to rise. Avride struck partnerships with major players like Uber, Hyundai, GrubHub, and Rakuten in the last reported quarter. NBIS has a 28% stake in ClickHouse, valued at around $6 billion presently. Nonetheless, the intense competition from behemoths remains a concern, along with profitability issues. Nebius is a relatively new entrant in the AI cloud infrastructure space, which boasts behemoths like Amazon, Microsoft MSFT and Alphabet. Amazon Web Services and Microsoft's Azure cloud platform together dominate more than half of the cloud infrastructure services market. Additionally, Microsoft's exclusive partnership with OpenAI gives Azure cloud the priority to access, leading AI models like GPT-4 Turbo and DALL·E. Despite its exceptional top-line growth, NBIS remains unprofitable, with management reaffirming that adjusted EBITDA will be negative for the full year 2025. Though it added that adjusted EBITDA will turn positive at 'some point in the second half of 2025.' NBIS has also raised its 2025 capital expenditure forecast to approximately $2 billion from the previous estimate of $1.5 billion, primarily due to some planned fourth-quarter spending shifting into early first quarter. Higher capex can be a concern if revenue does not keep up the required pace to sustain such high capital intensity. Analysts have significantly revised their earnings estimates downward for NBIS' bottom line over the past 60 days. Image Source: Zacks Investment Research Valuation-wise, NBIS is overvalued, as suggested by the Zacks Value Score of F. In terms of Price/Book, NBIS shares are trading at 2.94X, lower than the Internet Software Services industry's ratio of 4, but it could mean more risk than opportunity. Image Source: Zacks Investment Research Nebius' impressive top-line growth, driven by surging AI infrastructure demand and strong ARR momentum, along with strategic partnerships, especially with NVIDIA, and global expansion efforts, strengthens its long-term positioning. However, the company remains unprofitable with adjusted EBITDA projected to be negative for the full year 2025. Rising capital expenditures and intense competition from cloud giants like Amazon and Microsoft are other headwinds. At present, NBIS carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
