Latest news with #neocloud
Yahoo
2 days ago
- Business
- Yahoo
Nebius (NBIS) Soars 17.3% as Analyst Gives Buy Reco, Higher Price Target
We recently published . Nebius Group N.V. (NASDAQ:NBIS) is one of Monday's top performers. Nebius Group soared by 17.27 percent on Monday to end at $51.95 apiece following an investment firm's bullish rating and higher price target for the company. Over the weekend, Goldman Sachs gave Nebius Group N.V. (NASDAQ:NBIS) a 'buy' recommendation with a price target of $68, or a 30.9-percent upside from its latest closing price. According to Goldman Sachs, the rating was based on the company's leadership position in the neocloud market—an industry that heavily supports artificial intelligence growth. Additionally, Goldman Sachs said it expects a 50 percent upside from current levels for Nebius Group N.V. (NASDAQ:NBIS) due to AI's growing need for specialized GPU infrastructure. Based on its historical earnings reporting dates, Nebius Group N.V. (NASDAQ:NBIS) is set to release the results of its second quarter financial and operating results on August 1, 2025. An aerial view of an intricate network of digital infrastructure, lit up against a night sky. In the first quarter of the year, Nebius Group N.V. (NASDAQ:NBIS) widened its net loss from continuing operations by 41 percent to $113.6 million from $80.5 million in the same period last year. Revenues, on the other hand, expanded by 385 percent to $55.3 million from $11.4 million year-on-year. While we acknowledge the potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
7 days ago
- Business
- Globe and Mail
Here's Why Nebius Group Nearly Doubled in the First Half of 2025
Key Points Nebius is one of the big new AI "neoclouds" backed by Nvidia. Like peer CoreWeave, Nebius saw hypergrowth in the first half of 2025. Nebius also took a majority stake in a Jeff Bezos-backed AI company. 10 stocks we like better than Nebius Group › Shares of Nebius Group (NASDAQ: NBIS) nearly doubled in the first half of 2025, rising 99.7% through June 30, according to data from S&P Global Market Intelligence. Nebius is a "new" version of an old company called Yandex, which had been known as the "Russian Google." After Russia invaded Ukraine in 2022, Yandex divested its Russian assets, reheadquartered in Amsterdam, and then went about using its data center expertise to build a European artificial intelligence (AI) "neocloud" in the vein of CoreWeave (NASDAQ: CRWV). The company relisted on the Nasdaq in August 2024. Coming into 2025, Nebius therefore looked like a start-up, with lots of cash, in-progress assets, and little revenue; however, the company soon showed explosive growth that led to widespread optimism it would become a major AI winner. Another Nvidia-backed neocloud showing triple-digit growth Back in December 2024, Nebius raised $700 million in a private placement led by Nvidia (NASDAQ: NVDA). Thus, like CoreWeave, Nebius became one of the neocloud "horses" upon which Nvidia is betting. As the large cloud-computing providers increasingly turn to their own in-house designed AI chips to save money, Nvidia appears to be backing several top-tier "neoclouds," which likely get a preferred allocation of Nvidia graphics processing units (GPUs). That early access to the latest Nvidia Blackwell GPUs, along with expertise in running AI GPU infrastructure, gives these companies an advantage. Thus, Nebius and CoreWeave have shown explosive growth as they rent out their infrastructure to hyperscale cloud companies or directly to AI companies such as OpenAI. As an early-stage tech company, Nebius' stock was highly volatile during the first half of the year, falling hard after the DeepSeek R1 model was released and then again following April 2 "Liberation Day." Yet when all was said and done, Nebius' stock nearly doubled by June 30. That came on the back of strong triple-digit revenue growth, lending credence to Nebius' forward guidance at the beginning of the year. May was a big month for Nebius, as it reported first-quarter revenue growth of 385% and 684% growth in annualized recurring revenue (ARR), which leapt to $249 million by the end of Q1. And that growth came with margin expansion, as Nebius' operating costs only grew by 96% in the same period. The massive revenue inflection seemed to vindicate Nebius' initial guidance to reach between $750 million and $1 billion in ARR by the end of 2025. During Q1, Nebius also made an interesting majority investment in Toloka, an expert data provider to AI companies. It was clear in the early stages of AI that sometimes AI gets things wrong or "hallucinates." That's why having good data is crucial, which is where Toloka comes in. Toloka is also backed by Jeff Bezos' venture company Bezos Expeditions, as well as by Mikhail Parakhin, the CTO of Shopify. After surging over 60% in May, Nebius rocketed another 50%-plus in June following a strong endorsement by boutique sell-side firm Arete Research. In an early-June analyst note, Arete's Andrew Beale slapped a $84 price target on Nebius, which is still nearly double today's stock price and was even 50% higher than Nebius' June 30 highs. Arete liked Nebius' execution and the "embedded value" of its AI clusters, given an apparent shortage of Nvidia Blackwell GPUs. Can Nebius keep climbing? At first, Nebius seems very expensive, trading for about 20 times this year's revenue estimates. However, if the company hits the high end of its end-of-year ARR guidance, then the stock is trading at a more reasonable 10 times forward ARR. That's not unreasonable for a company experiencing hypergrowth and expanding margins. However, it's very early in the AI races and in Nebius' revenue trajectory, so it's nearly impossible to tell how "expensive" the stock is from a long-term perspective after its massive first-half run. Should you invest $1,000 in Nebius Group right now? Before you buy stock in Nebius Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025
Yahoo
12-07-2025
- Business
- Yahoo
Here's Why Nebius Group Nearly Doubled in the First Half of 2025
Nebius is one of the big new AI "neoclouds" backed by Nvidia. Like peer CoreWeave, Nebius saw hypergrowth in the first half of 2025. Nebius also took a majority stake in a Jeff Bezos-backed AI company. 10 stocks we like better than Nebius Group › Shares of Nebius Group (NASDAQ: NBIS) nearly doubled in the first half of 2025, rising 99.7% through June 30, according to data from S&P Global Market Intelligence. Nebius is a "new" version of an old company called Yandex, which had been known as the "Russian Google." After Russia invaded Ukraine in 2022, Yandex divested its Russian assets, reheadquartered in Amsterdam, and then went about using its data center expertise to build a European artificial intelligence (AI) "neocloud" in the vein of CoreWeave (NASDAQ: CRWV). The company relisted on the Nasdaq in August 2024. Coming into 2025, Nebius therefore looked like a start-up, with lots of cash, in-progress assets, and little revenue; however, the company soon showed explosive growth that led to widespread optimism it would become a major AI winner. Back in December 2024, Nebius raised $700 million in a private placement led by Nvidia (NASDAQ: NVDA). Thus, like CoreWeave, Nebius became one of the neocloud "horses" upon which Nvidia is betting. As the large cloud-computing providers increasingly turn to their own in-house designed AI chips to save money, Nvidia appears to be backing several top-tier "neoclouds," which likely get a preferred allocation of Nvidia graphics processing units (GPUs). That early access to the latest Nvidia Blackwell GPUs, along with expertise in running AI GPU infrastructure, gives these companies an advantage. Thus, Nebius and CoreWeave have shown explosive growth as they rent out their infrastructure to hyperscale cloud companies or directly to AI companies such as OpenAI. As an early-stage tech company, Nebius' stock was highly volatile during the first half of the year, falling hard after the DeepSeek R1 model was released and then again following April 2 "Liberation Day." Yet when all was said and done, Nebius' stock nearly doubled by June 30. That came on the back of strong triple-digit revenue growth, lending credence to Nebius' forward guidance at the beginning of the year. May was a big month for Nebius, as it reported first-quarter revenue growth of 385% and 684% growth in annualized recurring revenue (ARR), which leapt to $249 million by the end of Q1. And that growth came with margin expansion, as Nebius' operating costs only grew by 96% in the same period. The massive revenue inflection seemed to vindicate Nebius' initial guidance to reach between $750 million and $1 billion in ARR by the end of 2025. During Q1, Nebius also made an interesting majority investment in Toloka, an expert data provider to AI companies. It was clear in the early stages of AI that sometimes AI gets things wrong or "hallucinates." That's why having good data is crucial, which is where Toloka comes in. Toloka is also backed by Jeff Bezos' venture company Bezos Expeditions, as well as by Mikhail Parakhin, the CTO of Shopify. After surging over 60% in May, Nebius rocketed another 50%-plus in June following a strong endorsement by boutique sell-side firm Arete Research. In an early-June analyst note, Arete's Andrew Beale slapped a $84 price target on Nebius, which is still nearly double today's stock price and was even 50% higher than Nebius' June 30 highs. Arete liked Nebius' execution and the "embedded value" of its AI clusters, given an apparent shortage of Nvidia Blackwell GPUs. At first, Nebius seems very expensive, trading for about 20 times this year's revenue estimates. However, if the company hits the high end of its end-of-year ARR guidance, then the stock is trading at a more reasonable 10 times forward ARR. That's not unreasonable for a company experiencing hypergrowth and expanding margins. However, it's very early in the AI races and in Nebius' revenue trajectory, so it's nearly impossible to tell how "expensive" the stock is from a long-term perspective after its massive first-half run. 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 $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% 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 July 7, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Shopify. The Motley Fool recommends Nebius Group. The Motley Fool has a disclosure policy. Here's Why Nebius Group Nearly Doubled in the First Half of 2025 was originally published by The Motley Fool 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
Yahoo
01-07-2025
- Business
- Yahoo
Neocloud providers leverage the AI frenzy
Neocloud providers are companies that offer cloud computing services specifically tailored for AI applications. They focus on providing access to high-performance computing resources, particularly Graphics Processing Units (GPUs), which are essential for running complex AI workloads. The neocloud concept has emerged relatively recently, coinciding with the rapid advancements in AI technologies and the growing need for specialised computing resources. CoreWeave was one of the pioneers, although other companies such as Lambda Labs, Crusoe and Nebius have also followed suit. Traditional large cloud computing companies such as AWS, Azure and Google have also joined the trend and are now offering 'GPU as a service', as well as telcos such as Orange Business and other. Unlike traditional cloud providers, neocloud providers often operate in a niche market, catering to businesses that require substantial computational power without necessarily relying on the massive infrastructure of larger hyperscalers like Amazon Web Services (AWS) or Google Cloud. Like many segments in the AI race, the market for neocloud providers is fiercely competitive and presents with several significant challenges. Many of these providers are heavily reliant on investor funding to sustain their operations, as they have yet to achieve profitability. The environment is crowded with competitors ranging from startups to established System Integrators (SIs), telecommunications companies (telcos), and Managed Security Service Providers (MSSPs), all offering similar capabilities, often as an extension of their core services. This was the case of data centre startup CoreWeave which suffered many problems when it initially went public, with an IPO initially estimated to reach up to $32bn, going down to $23bn in the days prior to its stock market debut. In the same way as other neoclouds, CoreWeave rents out computing power to big tech companies building out large language models (LLMs). The company relies heavily on two major customers: Microsoft and OpenAI. The latter, alongside Nvidia, is a stakeholder in CoreWeave. It also leases computing power to Meta and IBM. CoreWeave's stratospheric levels of debt were behind these problems and signal a major challenge affecting all competitors in this niche market. Neocloud providers face challenges related to the availability of GPUs and other critical components, which are subject to global supply chain fluctuations. This has created an asymmetry between supply and contractual obligations, making it essential for providers to secure data centre space, power, and cooling capabilities suitable for AI operations. It is a market that has seen significant investment activity, including major funding rounds and IPOs. But it faces up to the headwinds typical of the high end of the AI market. GlobalData analyst Beatriz Valle commented: 'The AI revolution caught the hyperscale community somehow by surprise. The AI market continues to power ahead, with demand outstripping many original projections in spite of the numerous forecasts of doom and gloom. GlobalData estimates the overall AI market will see a 35% increase in 2025 over 2024, with a compound annual growth rate of 41% from 2023 to 2028. In Q1 2025, a GlobalData survey found 73% of respondents believed AI to be the most disruptive technology to their industry, above cyber security, and consistent with previous quarters and even years. However, when it comes to the neocloud trend, it really is, in essence, a relatively pointless term for AI GPU rental companies that popped up like mushrooms after the rain, and will likely shrivel up and die in the unrelenting sun of competition.' Neocloud providers play a critical role in the evolving cloud computing landscape, particularly as partners and competitors to larger hyperscalers. However, they face unique challenges related to investment dependence, supply chain vulnerabilities, and market competition. As the demand for AI capabilities continues to grow, the neocloud sector is poised for further development and potential consolidation. "Neocloud providers leverage the AI frenzy" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Yahoo
07-06-2025
- Business
- Yahoo
Why Nebius Group Rocketed 62% Higher in May
Nebius Group is one of the premier AI "neoclouds." It reported first-quarter earnings in May, with triple-digit hypergrowth, albeit off a small base. The company also invested in Toloka, a Jeff Bezos-funded AI data start-up. 10 stocks we like better than Nebius Group › Shares of up-and-coming "neocloud" Nebius Group (NASDAQ: NBIS) rocketed 61.7% in May, according to data from S&P Global Market Intelligence. Nebius was formerly known as Yandex, the "Russian Google." However, following Russia's invasion of Ukraine and the dawn of the artificial intelligence (AI) revolution, the company divested its Russian assets and changed its name to Nebius Group in August 2024, with the goal of becoming an AI neocloud based in Europe. In May, Nebius reported its first-quarter 2025 results, showing strong hypergrowth, albeit off a very low base, due to its change in business model. Nebius also invested in a Jeff Bezos-backed AI start-up, perhaps adding to the enthusiasm. The strong results, which came on a generally very good month for AI tech companies, propelled Nebius to new heights. While Nebius' revenue is still quite small, it is just deploying all the cash it received from its divestments into new AI data centers adorned with Nebius' proprietary infrastructure servers. In his letter to shareholders, CEO Arkady Volozh noted that in the span of just three quarters, the company has expanded from one data center in Finland to now five across Europe, the U.S., and the Middle East. In the first quarter, Nebius grew revenue by 385% to $55.3 million, while adjusted (non-GAAP) net losses per share deepened by only 19%. Meanwhile, the company's annualized recurring revenue (ARR) grew at an even higher rate than revenue, up a whopping 684% to $249 million. Investors were also able to get a good sense of the company's future profit potential. While revenue grew 385%, Nebius' total gross, depreciation, and operating costs combined grew by only 96%. Given the strong results, on top of a strong recovery in AI tech stocks following the May 12 U.S.-China rollback of tariffs, it's no wonder Nebius had a strong month. In addition, on May 9, Nebius made a strategic majority investment in Toloka, an AI data solutions start-up backed by both Bezos Expeditions and Mikhail Parakhin, CTO of Shopify (NASDAQ: SHOP). Toloka is a best-in-class expert data provider, drawing from experts in over 50 fields, and is a generator of synthetic data. The company already counts top AI clouds as clients, which use Toloka's data to power their large language models. Not only did Nebius have a fine May, but it also skyrocketed another 29.4% in June, after London-based Arete Research analyst Andrew Beale initiated coverage on the stock with a whopping $84 price target -- more than double the stock's price at the time. Like peer CoreWeave, it appears Nebius is also at the front of the line when receiving Nvidia reference design systems. That should pave the way for continued strong growth. Still, with an $11.4 billion market cap, or 45 times its current ARR, Nebius' recent skyrocketing stock price appears to reflect a lot of this hypergrowth already. That being said, Arete Research's analyst apparently thinks its growth trajectory justifies that sky-high valuation -- and then some. 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 171% 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 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nebius Group, Nvidia, and Shopify. The Motley Fool has a disclosure policy. Why Nebius Group Rocketed 62% Higher in May was originally published by The Motley Fool
