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NBIS: A Vertically Integrated AI Infrastructure Powerhouse
Key Takeaways
AI infrastructure spending has reached unprecedented heights and is growing.
Spending will only grow further as agentic and physical AI take form.
Nebius will be a prime beneficiary of the AI boom.
The Unprecedented AI Buildout
Despite bubble fears, funding worries, and return-on-investment concerns, among Wall Street, America’s leading tech companies are laser focused on once mission: date centers and compute on a massive scale. Hyperscalers, or massive cloud service providers that offer enterprise-level computing, storage, and network capacity at an enormous scale, are spending unprecedented levels of CAPEX on AI infrastructure and data centers. In fact, at 2% of GDP, AI CAPEX spending already dwarfs the massive railroad buildout of the 1850s.
Image Source: Carson Investment Research
However, based on forward guidance from hyperscalers like Meta Platforms ((META - Free Report) ),Microsoft ((MSFT - Free Report) ), and Alphabet ((GOOGL - Free Report) ), this AI spending frenzy will not only not slow, but is likely to gain momentum through the end of the decade.
Jensen Huang’s Prediction is on Track
One year ago, Nvidia ((NVDA - Free Report) ) CEO Jensen Huang, the foremost AI expert in the world predicted that the AI path of innovation would follow the below path:
· Perception AI (Speech recognition, medical imaging)
· Generative AI (content creation, digital marketing)
After the overwhelmingly successful release of OpenClaw, the agentic AI revolution is here. Unlike Charbots, which require human prompting, OpenClaw automatically sends emails, manages calendars, and performs other tasks autonomously. Meanwhile, physical AI looms, enabling AI to move beyond digital text to enable machines to perceive, understand, and act within the physical world. While the AI revolution has been unprecedented until this point, many AI experts like Tesla’s ((TSLA - Free Report) ) Elon Musk and Advanced Micro Devices ((AMD - Free Report) ) Lisa Su believe that physical AI be AI’s largest wave.
AI Requires Training
While AI is proliferating into different waves, tech companies are still spending billions of dollars training generative AI models. Both agentic and physical AI will require more AI data centers and infrastructure to be built.
Why Nebius Group is Perfectly Positioned for the AI Boom
Nebius Group ((NBIS - Free Report) ) builds and operates full-stack infrastructure for the AI industry. While many AI infrastructure companies are benefiting from the unprecedented AI spending, Nebius is uniquely positioned because it is vertically integrated. Nebius offers:
· An AI-Native Cloud Platform
· Hard-to-find Nvidia GPUs (Thanks to a partnership with the company)
· A Full-Stack Approach (including software, hardware, and managed services for AI developers.
3 Reasons to Buy Nebius Now
Nebius should be a top choice for investors looking to gain exposure to the AI infrastructure boom for three reasons:
1. Microsoft Deal: In September, Nebius landed a massive, five-year, $17.4 billion deal to provide Microsoft with AI infrastructure.For reference, Nebius’s entire market cap is just ~24 billion!
Image Source: Zacks Investment Research
2. Explosive Revenue Growth: NBIS revenues are expected to grow 59x by 2029!
Image Source: Nebius
3. Institutional Accumulation: BlackRock ((BLK - Free Report) ), the largest money manager in the world, just disclosed a position worth $800 million, representing a 39.418% increase quarter-over-quarter. Typically, massive institutional investors like BlackRock don’t make one purchase but instead acquire shares over months and years.
Bottom Line
The AI revolution is evolving beyond generative AI to agentic and physical AI. Specialized infrastructure players like Nebius Group will become the backbone of the next industrial era.
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NBIS: A Vertically Integrated AI Infrastructure Powerhouse
Key Takeaways
The Unprecedented AI Buildout
Despite bubble fears, funding worries, and return-on-investment concerns, among Wall Street, America’s leading tech companies are laser focused on once mission: date centers and compute on a massive scale. Hyperscalers, or massive cloud service providers that offer enterprise-level computing, storage, and network capacity at an enormous scale, are spending unprecedented levels of CAPEX on AI infrastructure and data centers. In fact, at 2% of GDP, AI CAPEX spending already dwarfs the massive railroad buildout of the 1850s.
Image Source: Carson Investment Research
However, based on forward guidance from hyperscalers like Meta Platforms ((META - Free Report) ), Microsoft ((MSFT - Free Report) ), and Alphabet ((GOOGL - Free Report) ), this AI spending frenzy will not only not slow, but is likely to gain momentum through the end of the decade.
Jensen Huang’s Prediction is on Track
One year ago, Nvidia ((NVDA - Free Report) ) CEO Jensen Huang, the foremost AI expert in the world predicted that the AI path of innovation would follow the below path:
· Perception AI (Speech recognition, medical imaging)
· Generative AI (content creation, digital marketing)
· Agentic AI: ***Current***(coding assistant customer service)
· Physical AI (Self-driving cars, robotics)
After the overwhelmingly successful release of OpenClaw, the agentic AI revolution is here. Unlike Charbots, which require human prompting, OpenClaw automatically sends emails, manages calendars, and performs other tasks autonomously. Meanwhile, physical AI looms, enabling AI to move beyond digital text to enable machines to perceive, understand, and act within the physical world. While the AI revolution has been unprecedented until this point, many AI experts like Tesla’s ((TSLA - Free Report) ) Elon Musk and Advanced Micro Devices ((AMD - Free Report) ) Lisa Su believe that physical AI be AI’s largest wave.
AI Requires Training
While AI is proliferating into different waves, tech companies are still spending billions of dollars training generative AI models. Both agentic and physical AI will require more AI data centers and infrastructure to be built.
Why Nebius Group is Perfectly Positioned for the AI Boom
Nebius Group ((NBIS - Free Report) ) builds and operates full-stack infrastructure for the AI industry. While many AI infrastructure companies are benefiting from the unprecedented AI spending, Nebius is uniquely positioned because it is vertically integrated. Nebius offers:
· An AI-Native Cloud Platform
· Hard-to-find Nvidia GPUs (Thanks to a partnership with the company)
· A Full-Stack Approach (including software, hardware, and managed services for AI developers.
3 Reasons to Buy Nebius Now
Nebius should be a top choice for investors looking to gain exposure to the AI infrastructure boom for three reasons:
1. Microsoft Deal: In September, Nebius landed a massive, five-year, $17.4 billion deal to provide Microsoft with AI infrastructure.For reference, Nebius’s entire market cap is just ~24 billion!
Image Source: Zacks Investment Research
2. Explosive Revenue Growth: NBIS revenues are expected to grow 59x by 2029!
Image Source: Nebius
3. Institutional Accumulation: BlackRock ((BLK - Free Report) ), the largest money manager in the world, just disclosed a position worth $800 million, representing a 39.418% increase quarter-over-quarter. Typically, massive institutional investors like BlackRock don’t make one purchase but instead acquire shares over months and years.
Bottom Line
The AI revolution is evolving beyond generative AI to agentic and physical AI. Specialized infrastructure players like Nebius Group will become the backbone of the next industrial era.