$NVDA (-3,63 %)
$NBIS (-13,18 %)
Nebius has its roots in Russia and was originally part of the Yandex Group, one of the country's largest tech companies. Yandex built up a strong cloud division over the years, focusing on AI-powered solutions and cloud computing. However, in the wake of geopolitical tensions and economic restructuring, Yandex decided to spin off its international divisions, including the cloud division, which eventually continued as an independent company under the name Nebius.
Specialist for data centers and AI
Today, Nebius is an Amsterdam-based cloud service provider specializing in artificial intelligence (AI). The company operates its own infrastructure with state-of-the-art data centers, including a high-performance data center in Finland, which already comprises over 14,000 GPUs and is being expanded further. Nebius has a clear strategy: it focuses exclusively on AI infrastructures and offers a complete stack solution for companies developing compute-intensive machine learning models and AI applications.
This focus appears to be bearing fruit, as chip giant Nvidia today acquired 1.2 million Class A shares in Nebius, according to an SEC filing. The exact background to the investment is not known, but the close cooperation between the two companies in the hardware and cloud sectors suggests a strategic partnership. Nebius plans to be one of the first providers in Europe to integrate the latest Nvidia Blackwell platform into its offering - a further advantage in the highly competitive AI cloud market.
Financially, Nebius is on a strong growth trajectory. The company increased its revenue by 1.7 times in the third quarter of 2024, while the core business with AI cloud services almost tripled. For 2025, Nebius expects revenue to jump to USD 500 to 700 million and is targeting the EBITDA break-even point. An expansion of GPU capacities is in full swing: by the end of 2025, the number of GPUs in use is set to rise to over 20,000, while the Finnish data center will triple its capacity to 75 MW.
Another strong argument for Nebius is its solid capital base. As of September 30, 2024, the company had more than USD 2 billion in cash and cash equivalents and also has access to the capital markets. This gives Nebius the financial leeway to realize its ambitious growth plans in the coming years.
Conclusion: Nebius shares are certainly a stock that traders should have on their watchlist now that the industry leader Nvidia has put out feelers. In addition to Nebius, Nvidia has also acquired WeRide, a developer of autonomous driving systems.
https://stock3.com/news/insideralarm-nvidia-kauft-sich-bei-diesem-unternehmen-ein-16134008
