The Long-Term Story Remains Intact
Despite the recent pullback, there are compelling reasons to remain optimistic about Nebius’s long-term prospects. Nebius’s core business is well-positioned to benefit from the surging demand for AI infrastructure, especially as companies continue ramping up AI deployments. The company also enjoys solid institutional backing, with NVIDIA’s stake and positions from Soros Capital, Marshall Wace, and Columbus Hill reflecting strong confidence in its future.
Robust guidance pointing to a $1 billion ARR target by year-end signals Nebius’s intent to scale aggressively. Furthermore, a key upcoming catalyst is NVIDIA’s earnings report this Wednesday. As a significant AI chip supplier, market leader, and shareholder in Nebius, NVIDIA’s outlook could offer critical insights into the overall health of the AI sector and potential tailwinds for Nebius.
Written by Ryan Hasson