Nebius Partners with Meta for $12 Billion AI Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy NBIS?
Source: NASDAQ.COM
- Major Partnership Agreement: Nebius has signed a long-term agreement with Meta Platforms to invest $12 billion in Nvidia's next-generation Rubin chips by early 2027, significantly enhancing Nebius's competitive position in the AI computing capacity market.
- Revenue Growth Potential: Nebius projects its annual revenue to rise from $1.25 billion in 2025 to between $7 billion and $9 billion by the end of 2026, indicating strong growth potential in the AI computing capacity buildout trend, with a possibility of achieving 10x revenue growth.
- SoundHound AI's Market Opportunity: SoundHound AI's voice recognition software shows immense market potential in the customer service industry, with Q4 2025 revenue rising 59% year-over-year; if it successfully automates customer interactions, it is expected to significantly increase its market share.
- IonQ's Quantum Computing Leadership: IonQ's revenue reached $130 million in 2025, projected to grow to $235 million in 2026, and as quantum computing technology advances, IonQ is poised for substantial market returns in the coming years.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 105.970
Low
130.00
Averages
164.20
High
211.00
Current: 105.970
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Opportunity Assessment: The video highlights that while Nebius Group is not recommended as a top investment, analysts believe there are still 10 stocks in the current market that could yield substantial returns in the coming years, reflecting a focus on potential high-yield investments.
- Historical Return Comparison: It mentions that Netflix and Nvidia were once on the recommendation list, with an initial $1,000 investment growing to $503,861 and $1,026,987 respectively, underscoring the importance of investment strategy and market timing.
- Investor Community Building: The Motley Fool Stock Advisor aims to create a community for individual investors to access market insights, and while analyst Neil Rozenbaum holds positions in Nebius Group, he emphasizes that his opinions remain independent of the company, ensuring transparency in information.
See More
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- Investor Psychology: The video discusses the current investor psychology, with many adopting a wait-and-see approach regarding future market performance, which could lead to decreased trading volumes and further exacerbate market volatility in the short term.
- Buying Opportunity Assessment: Despite the market pressures, analysts suggest that in certain cases, the current low prices may present attractive opportunities for long-term investors, particularly in stocks of fundamentally strong companies.
- Future Outlook: The video emphasizes the importance of monitoring market dynamics, urging investors to closely watch economic indicators and corporate earnings reports to make informed investment decisions at the right time.
See More
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- Nvidia's Strong Growth: Nvidia reported a 73% year-over-year revenue increase in Q4, with a projected 77% growth in Q1, and despite recent stock performance being lackluster, this presents an excellent buying opportunity, underscoring its leadership in the AI sector.
- Broadcom's Market Potential: Broadcom anticipates its AI chip sales will exceed $100 billion by 2027, a significant increase from the current $8.4 billion per quarter, indicating strong demand and strategic positioning in the custom AI chip market.
- Microsoft's Cloud Expansion: Microsoft's AI computing business saw a 39% year-over-year revenue increase in the latest quarter, and despite a 35% drop from its all-time high, the expansion of its cloud capabilities lays a solid foundation for future growth, attracting more investor interest.
- Meta's Sustained Growth: Meta achieved a 24% revenue growth in the latest quarter, and although its stock is down 34% from its all-time high, its investments in AI capabilities could drive future stock price increases, showcasing its dual advantage in social media and AI.
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