Is Nebius a Buy?
By now, investors are familiar with the best-known artificial intelligence (AI) winners, such as the "Magnificent Seven" stocks, but there are other lesser-known AI stocks that have even outperformed some of the Magnificent Seven in the last few years.
One of them is Nebius (NASDAQ: NBIS), one of two fast-growing "neocloud" stocks along with CoreWeave. These companies are building data center infrastructure full of Nvidia graphics processing units (GPUs) for the specific purpose of powering AI computing. Much like traditional cloud computing services like Amazon Web Services (AWS) that allow businesses to scale up and rent computing power as needed, Nebius and CoreWeave do the same but specifically for AI applications.
Nebius emerged from the shell of Yandex, the Russian search giant that was delisted from the Nasdaq after Russia invaded Ukraine. Nebius was started as an internal cloud computing program inside Yandex, building data centers full of GPUs to run AI applications. After the invasion of Ukraine, the company divested its Russian assets, rebranded as Nebius, moved its headquarters to Amsterdam, and, following those moves, was allowed to start trading again on the Nasdaq on Oct. 21, 2024. The stock has soared since then as you can see from the chart below.
Source Fool.com
