Nebius Group: Ferrari of AI Cloud Compute
"Yeah, so the stock that I really like here is Nebius Group, tickers NBIS. I like to call them the Ferrari of AI cloud compute because what you have is you have all these big AI data center operators. They're building these new data centers, but they're still supply short. They're still crunch that the demand still leads to supply. So, they need to go and find more anywhere they can find it. Now, Nebius is a smaller company that operates data centers, but very specific for AI. So, when Amazon builds a data center or Microsoft builds a data center, it's got to be multi-purpose because AI is part of what they do, but they also just service general cloud compute, not Nebus. Nebus is AI, AI, and AI and a little bit more AI. That's all they do from the ground up."
Luke Lango presents Nebius Group (NBIS) as an ideal trade call due to its specialized focus on AI-only data centers. He emphasizes that while larger players build multipurpose centers, Nebius is solely dedicated to AI, creating a supply-demand mismatch that could drive significant growth over the next 12 to 24 months.
Excitement for Nebus and a Put Selling Strategy
"Now, the final stock is Nebius and I am actually pretty excited for it right now. With ambitious plans to scale from 220 megawatts of connected power by the end of 2025 to 1 gigawatt by the end of 2026, and having recently inked a multi-billion dollar deal with Microsoft, Nebus is on a rapid growth trajectory. I am considering selling puts at levels below 100 to potentially acquire the stock at around 95, which would offer an attractive entry point given the companys expansion and funding background."
The speaker expresses strong enthusiasm for Nebus, citing its aggressive capacity expansion goals and a significant partnership with Microsoft. He reveals an actionable strategy of selling puts below $100 to secure an even lower effective purchase price, positioning this as an attractive trade given the company’s growth prospects.
Nebius Gains Traction Through Microsoft Deal
"it has to do with Microsoft's deal with the neocloud company, Nebius Group, NV. It's gonna provide computing power to internal teams creating large language models and a consumer AI assistant, according to folks familiar. So the arrangement, which is worth about $19.4 billion, sparked a rally in Nebius shares."
Nebius Group (NBIS) is receiving significant attention following a major deal with Microsoft, which is valued at approximately $19.4 billion. The deal has already triggered a moderate rally in NBIS shares and reflects growing interest in neocloud solutions.
Strong Buy Recommendation for Nebius (NBIS) Based on Undervalued Price
"I love this one. Wall Street says it s a strong buy. $89. You re trading at $65. So let s go over and look at how Trendspider trades this one. NBIS trades it, okay?"
The analyst recommends buying Nebius (NBIS), highlighting that while Wall Street has set a target of $89, the stock is currently trading around $65. The technical momentum and historical gains make this an attractive short-term trade call.