Here is Why NBIS is an Asymmetric Bet Now

Hello everyone! Today i want to share some trading ideas with you!

1/ $NEBIUS(NBIS)$ is a 10x potential AI infrastructure stock everybody ignores.

Revenue is growing triple digits, they are building new data centers and the institutions still own less than 60% of the company.

Here is why NBIS is an asymmetric bet now: 🧵

2/ Most people don't understand what it exactly does.

It's a "whole-stack AI infrastructure company."

What does this mean?

It's a provider of cloud platform, specifically built for AI workloads.

Its whole stack because it owns its own data centers and makes its own servers.

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3/ It's heavily investing to meet the demand.

It has two operational data centers in Finland and France and it'll be a opening one in the US soon.

It'll invest over $1 billion this year for expansion.

So what makes it special?

Its custom hardware tailored for AI workloads.

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4/Its flagship data center in Finland uses natural air to cool data rooms.

This reduces the need for sub-cooling, enabling them to design their custom hardware to work at higher temperatures.

This obviates the need for sub-cooling systems, which drastically cuts costs.

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5/ As the costs decrease, so does the total cost of ownership.

It passes some of its savings from ownership costs to customers, offering them a cutting edge performance in AI/ML workloads at lower prices.

It also built a specialized cloud platform on this custom hardware.

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6/ Their cloud platform is AI native.

What does this mean?

Nebius’ cloud platform was designed specifically for AI, unlike general-purpose clouds like AWS or Google Cloud.

It was built from scratch with NVIDIA GPUs and fast InfiniBand networks to handle the full AI process like data prep, training, and inference.

With custom hardware and software, it’s efficient and scalable, offering pre-set AI tools and up to 50% cheaper inference costs.

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7/ It's also backed by $NVIDIA(NVDA)$ .

Though this doesn't prove anything, it ensures that it'll have timely access to cutting edge GPUs.

This is an important edge as they are looking to triple their GPU capacity this year.

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8/ Why is it a great potential now?

Because the industry is seeking alternatives to hyperscalers.

Especially European companies are seeking to diversify away from hyperscalers because of data privacy concerns and high costs.

Nebius is based in the Netherlands, subject to EU regulations, and its prices are also cheaper.

It predicts that the market for specialized cloud services and AI infrastructure will grow from $33 billion in 2023 to $260 billion in 2030.

This is a giant, giant opportunity.

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9/ It's heavily expanding to meet this demand.

They currently have 25 MW capacity and they are looking to grow it to GW in 2 years, this is a 40x growth in capacity.

10/ Valuation is very attractive.

If they reach 1 GW capacity by 2026, this means that they'll generate around $8 billion revenue at roughly %66 utilization rate.

Give it a conservative 5x sales, it'll be a $40 billion company, today it's valued at just $8 billion.

It's one of the most asymmetric opportunities I currently see in the market.

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