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Nebius NBIS is a technology company building full-stack infrastructure to service the high-growth global AI industry.
Its AI-native cloud platform has been built for intensive AI workloads. With a full stack of purposefully designed and tuned proprietary software and hardware designed in-house, the company provides AI builders with the compute, storage, managed services, and tools they need to build, tune, and run their models and applications.
The stock has dominated headlines thanks to a huge announcement revealed this week that involves beloved Mag 7 member Microsoft MSFT.
More specifically, Nebius announced a multi-year agreement with Microsoft to provide AI infrastructure, delivering dedicated capacity to Microsoft from its new data center in Vineland, New Jersey, starting later this year.
The market reacted ferociously to the Microsoft news, with NBIS shares seeing a 50% surge the following day and reaching new all-time highs. Now up 250% YTD, the stock has crushed the S&P 500, also outperforming the Zacks Technology sector handily as well.
Image Source: Zacks Investment Research
The deal is worth $17.4 billion over a five-year timeframe. But the party could just be starting for Nebius, as CEO Arkady Volozh stated –
‘We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies. I’m happy to announce the first of these contracts, and I believe there are more to come.’
But keep in mind that the company has already been enjoying significant momentum, which was fully revealed in its latest set of quarterly results. Sales of $105.1 million throughout the period surged 625% year-over-year, with the company also increasing its annualized run-rate revenue guidance. And for the cherry on top, its core business achieved positive adjusted EBITDA ahead of its original timeframe.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
Nebius Group N.V. (NBIS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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