Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 24 Feb, 25 | NBIS | Buy | USD 37.42 | USD 40.79 | USD 43.78 | 8 days | 17.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Strong Cash Position – The company successfully raised $700 million in December 2024, bringing its total cash and cash equivalents to $2.45 billion, providing substantial financial flexibility for further expansion.
Exceptional Revenue Growth – Nebius Group achieved a 466% year-over-year increase in Q4 revenue and a 462% increase in full-year 2024 revenue, reaching $117.5 million. This rapid expansion highlights strong demand for its AI infrastructure services.
Lower-than-Expected ARR for AI Infrastructure – December 2024 ARR for Nebius’ core AI infrastructure business was $90 million, which fell below previous guidance due to longer lead times in customer acquisition and migration challenges.
Significant Net Loss – Despite strong revenue growth, the company reported a full-year net loss from continuing operations of $396.9 million, a 19% increase from 2023 ($336.6 million), indicating high operational costs and ongoing unprofitability.
Key investment risks for Nebius Group include sustained high operating losses, potential delays in customer acquisition affecting revenue projections, heavy reliance on NVIDIA's GPU supply chain, and intense competition in the AI infrastructure market.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 37.42 | 32.56 | 40.79 | 43.78 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strong Financial Performance and Rapid Growth
Nebius Group N.V. (NASDAQ: NBIS), a leading AI infrastructure company, reported impressive financial results for the fourth quarter and full year of 2024. The company achieved a revenue of $37.9 million in Q4, reflecting a remarkable 466% year-over-year growth, driven primarily by the core AI infrastructure segment, which grew by 602% year over year. For the full year, revenue reached $117.5 million, representing a 462% increase. Despite this strong growth, the company reported an adjusted EBITDA loss of $75.5 million in Q4 and $266.4 million for the full year, while net loss from continuing operations stood at $136.6 million and $396.9 million, respectively.
Strategic Expansion and Capital Investment
Nebius Group strengthened its financial position by successfully raising $700 million in an over-subscribed funding round in December 2024, with participation from top-tier investors such as Nvidia, Accel, and Orbis. The company ended the year with total cash and cash equivalents of $2.45 billion. Significant capital investments were made, with expenditures totaling $417.6 million in Q4 and $808.1 million for the year. Operational cash outflow amounted to $80.4 million in Q4 and $319.6 million for the year, reflecting the company’s ongoing expansion and infrastructure investments.
AI Infrastructure Expansion and Product Innovation
Nebius made significant strides in scaling its AI infrastructure, launching its first U.S. NVIDIA GPU cluster in Kansas City, with an initial 5MW phase set to go live in early 2025. Additional capacity was added in Paris, France, featuring NVIDIA H200 Tensor Core GPUs. The company announced plans to deploy over 22,000 NVIDIA Blackwell GPUs in data centers in the U.S. and Finland in 2025. On the software front, Nebius launched an AI-native cloud platform and expanded its AI Studio, adding vision model support and new large language models. A new serverless computing platform, Tracto.ai, was also introduced to support compute-intensive workloads.
Toloka’s Transition to Generative AI Training Data
Toloka, Nebius Group’s AI development platform, pivoted its focus toward providing high-quality training data for generative AI applications. The company reported a 140% year-over-year revenue increase for 2024 and expanded its client base to include some of the world’s largest foundational model developers. In Q4, Toloka completed a transition to a new technology platform, enhancing its data-for-GenAI services, including AI model red teaming, reasoning model evaluations, and scalable training. The platform also strengthened its workforce of domain experts, increasing their share by 50% quarter-over-quarter.
TripleTen’s Growth in Reskilling and Education
TripleTen, the Group’s edtech subsidiary, saw strong momentum in 2024, with a 100% year-over-year increase in student enrollment across its key markets in the U.S. and Latin America. Over 14,000 students joined its bootcamps throughout the year, marking a 149% growth from 2023. New programs, including a Cybersecurity Bootcamp and UX/UI Designer track, contributed to this expansion. The company also integrated AI-powered learning tools and partnered with Ascent, a U.S. funding provider, to offer financing options, further enhancing accessibility to its reskilling programs.
Avride’s Advancements in Autonomous Mobility
Avride, Nebius Group’s autonomous vehicle platform, expanded its operations through strategic partnerships. The company partnered with Grubhub to deploy robotic delivery services at Ohio State University, with nearly 100 robots operating by early 2025. Avride also launched Uber Eats deliveries in Austin and Dallas using its new generation of robots. In addition, the company achieved regulatory milestones, securing certification in Japan and permission to test autonomous vehicles on public roads in South Korea. Throughout Q4, Avride continued testing its latest autonomous vehicle technology, maintaining an excellent safety record with zero serious incidents.
Optimistic Outlook and Future Plans
Nebius Group remains optimistic about its future growth, citing strong momentum in customer acquisition and infrastructure expansion. While December 2024 ARR for Nebius fell short of expectations at $90 million due to longer customer onboarding times, the company projects March ARR to reach at least $220 million. With additional data center capacity and the deployment of Blackwell GPUs later in 2025, the company reaffirms its ambitious December 2025 ARR target of $750 million to $1 billion. Nebius Group continues to position itself as a major player in AI infrastructure, leveraging its expanding capabilities and strong investor support.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Nebius Group (NASDAQ: NBIS) at the current price of USD 37.42, as on February 24, 2025 at 09:05 AM PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industry:
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) |
|---|---|---|---|---|---|---|
| NBIS Nebius Group N.V. |
1.57 7.42% | 22.68 | - | - | - | - |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 24,2025 at 09:05 AM PST. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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