Nebius Group (NBIS): Future Prospects and Stock Price Outlook

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

With the rapid development of AI technology, attention is turning to Nevius Group (NBIS), a fast-growing provider of AI infrastructure, as companies, including Big Tech, plan major investments in data centers.

The company was once part of the Russian search engine giant Yandex, but was separated from Yandex due to the impact of sanctions. Currently based in the Netherlands, the company is developing AI services using its proprietary machine learning technology.

This article details the business, competitive advantages, and future growth potential of the Nevius Group (NBIS).

What is the Nevius Group (NBIS) and what is its business?

Nebius Group (NBIS) is a provider of artificial intelligence (AI)-based cloud platforms.

The company provides a high-performance AI supercomputing environment Nebius AI as its core business, providing computational infrastructure for AI researchers and companies.

Developing advanced solutions in several areas, including cloud computing, data collection, and automated driving technology,A New Player in the AI IndustryThe company has been

Nebius Group, a spinoff of the former Yandex cloud division, has exited the Russian market and is establishing itself as a global AI cloud provider.
Major investors include NVIDIA (NVIDIA) and Accel, which is experiencing rapid growth by providing high-performance cloud-based AI computation services.

The company's platform is,Utilize energy-efficient supercomputersThe company has been working with the government to develop a new AI training system that will enable companies and research institutions to conduct AI training on a large scale.
Particularly,The company's strength is that it offers competitive services in the development of large-scale language models (LLMs) and training of generative AI.

Nebius aims to become a leader in AI infrastructure services while strengthening its presence in the U.S. and European markets against a backdrop of future growth in the cloud computing market.

Corporate information on the Nevius Group is below.

• Company Name:Nebius Group (NBIS) : Nebius Group (NBIS)
• Year Established: 2023
• Head Office LocationAmsterdam, The Netherlands
• representativeAlexey Fyodorov : Alexey Fyodorov
• Official Site: https://nebius.com
• Main Businesses: Providing AI cloud platform (Nebius AI, Toloka, Avride)

What kind of business does Nebius (NBIS) do?

The Nevius Group (NBIS) is active in four main business areas, providing innovative solutions in each of them

AI Cloud Platform "Nebius AI

The main business of Nebius Nebius AI is dedicated to training and operating advanced AI models. Cloud-based supercomputersA platform that provides a
Companies and research institutions can take advantage of high-performance computational resources to smoothly develop and implement AI models.

Features of Nebius AI

• Accelerating Large-Scale AI Training:.Capable of training large scale AI models utilizing GPUs and TPUs.
• Optimize energy efficiency:.High performance with low power consumption contributes to cost reduction.
• Flexible Scalability: The system can be used for a wide range of applications.Resources can be adjusted to meet demand, from startups to large companies.
• Security and Data Protection:.Provides advanced data encryption and access control for enterprises.

The platform comes as AI researchers and companies seek large-scale computational power,Cost-effective cloud AI servicesIt is attracting attention as a

Toloka" data collection and annotation service

Providing high-quality data for AI training

To improve the accuracy of AI,Collection and labeling (annotation) of vast amounts of data is essential.
Nebius is,Toloka. and operates a crowdsourcing platform calledAssists in collecting and organizing data needed to train AI modelsThe company is doing so.

Toloka Features

• Multilingual and multiregional support:.Data annotators from around the world participate, allowing for a global response.
• High-precision data labeling:. Provides a wide range of data annotation, including image recognition, speech analysis, and text classification.
• Customizable data collection:. Data sets can be created according to the company's needs.

Toloka" is a new tool for companies that develop AI. A solution that enables rapid collection of high quality study data." It plays an important role as a

Avride" automated driving technology

AI technology development for next-generation mobility

Nebius is,Avride" automated driving technology The company is also working on the development of
This project is an AI-basedRecognition technology, path planning, and real-time control for automated vehicles and other support to enable safe and efficient autonomous driving.

Avride Features

• Advanced computer vision technology:.Image recognition and LiDAR (laser radar) are combined to accurately assess the environment.
• Real-time data processingAI enables safe driving with immediate decision making.
• Adaptive models for urban and suburban areas:.Can be operated in a variety of road environments.

Automated driving technology can also be applied to the logistics industry and public transportation, and Nebius is accelerating innovation in this area.

Energy-efficient supercomputer development

Optimize AI computing resources with low power consumption

Nebius is an environmentally friendlyEnergy-efficient supercomputers and contribute to improving the performance of AI cloud platforms.

Main Features

• High performance with low power consumption Training of large scale AI models can be performed with energy savings.
• Sustainable Data Center Design:. Reduced environmental impact through the use of renewable energy.
• Reduce corporate operating costs:. Provides computing power at a lower cost than traditional cloud providers.

This technology provides the infrastructure to support sustainable growth in the AI industry.

Summary of Nevius (NBIS) Business

Through these businesses, Nebius is setting new standards in the AI industry.
In particular, as the AI cloud platform grows, more companies and research institutions are expected to use the company's services in the future.

Why is Nevius (NBIS) in the spotlight now?

With the rapid development of AI technology, massive investments in data centers are underway around the world. In particular, Google and other big tech companies are investing huge sums of money to enhance their AI infrastructure.

Google's Investment Plan

Google (WWW search engine)Ha,Plans to invest $75 billion to enhance AI infrastructure by 2025The company is doing so.
The company also plans to invest approximately €2 billion in a data center in Poland and over $1 billion in a data center in Texas.

In addition, the company plans to build data centers in Bangkok and Chonburi, Thailand, and invest $1 billion between 2025 and 2029.

Other Big Tech Companies

Microsoftplans to invest approximately $80 billion in FY2025 to develop AI-enabled data centers.

Meta Platformsalso plans to increase capital spending in 2025 from $60 billion to $65 billion for AI and building a large data center.

These investments are intended to support training of AI models and deployment of cloud-based AI applications.

Why Nevius Group (NBIS)?

Against this backdrop, the Nebius Group (NBIS), a provider of AI infrastructure, is also attracting attention.

The company was once part of the Russian search engine giant Yandex, but was spun off due to sanctions, and is now based in the Netherlands, developing AI services using its own machine learning technology.
With the spread of AI technology, the demand for data centers is rapidly increasing, and the Nevius Group is expected to be the answer to this demand.

The construction and operation of data centers requires huge costs and advanced technology, with big tech companies and specialized firms such as the Nebius Group taking the lead.

The investments and innovations of these companies are supporting the infrastructure of the AI era.

What is the business model of Nebius (NBIS)? How does it generate revenue?

Nebius' (NBIS) business model consists primarily of subscription-based cloud services and project-based revenues.

Revenue from Nebius AI, an AI cloud platform

Nebius AI, the mainstay business of Nebius, is a system that allows companies and research institutions toCloud platform for AI model training and inference processing and is a major source of revenue.
This platform is based on the amount of usage Pay-as-you-go and ... and Fixed price (subscription) The company has adopted a fee structure of

revenue model

• Usage-based pricing
  • Companies and research institutions are charged according to the computing resources used (GPUs, CPUs, memory, storage, etc.).
  • Example: pricing based on GPU time used to train AI models.
• Subscription (monthly/yearly)
  • For BusinessesPlans that provide a fixed amount of computing resources for a fixed price development.
  • Long-term contracts ensure stable revenues.

This business model is similar to cloud companies such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure,High growth is expected as the AI market expands.

Revenue from data collection and annotation business "Toloka

Toloka" is a software package for training AI models.Platform for collecting and organizing labeled data and are used by companies and research institutions to improve data quality.
Toloka utilizes crowdsourcing, with many annotators participating in data processing,Large data sets can be created in a short period of time.

revenue model

• Sales of licenses to provide data
  • Companies pay a fee to obtain their own datasets, and Nebius provides the data.
• Data annotation outsourcing services
  • AI companies use Toloka,Outsource labeling workThe following is a list of the most common problems with the "C" in the "C" column.
  • A company pays a fee for each project.

This business is growing along with the increasing demand for AI development and has become an essential service for companies, especially in the areas of automated driving, image recognition, and voice recognition.

Revenue from "Avride" automated driving technology

Avride" is,AI technology development for self-driving cars and provides technology that is particularly applied in the fields of logistics and urban transportation.
In this area, AI has been used to Provision of vehicle control software licensesand joint development with partner companies will be a source of revenue.

revenue model

• AI software license sales
  • Provide software licenses to companies and automakers that develop automated driving technologies and receive royalties for their use.
• Project-based development contracts
  • Develop automated driving technology in collaboration with companies and earn revenue on a project-by-project basis.

Profit from the development of energy-efficient supercomputers

Nebius is,Energy-efficient supercomputers in a cloud environment The company contributes to the AI industry by doing so.
This allows companies and research institutions to take advantage of powerful AI computing resources at low cost.

revenue model

• Cloud-based supercomputer rental
  • AI computing resources are provided to companies and billed on an hourly or monthly basis.
• Sales of on-premise supercomputers
  • Sell and support the introduction of their own dedicated supercomputers to some large companies.

This business matches the data center cost reduction needs of companies and is expected to grow in the future.

The former Yandex relationship and transition of Nebius (NBIS) and CEO: Who is Mr. Arkady Volodji?

The Nebius Group, Inc,AI cloud platform company derived from leading Russian technology company Yandex (Yandex)The first is.

Behind its establishment were major changes, such as the independence of Yandex's international division and the reorganization of its brand. And at the helm was Arkady Volodji, co-founder and longtime CEO of Yandex.

Yandex Founding and Volozh's Leadership

In 1997, mathematician Arkady Volodji founded Yandex with geophysicist Ilya Segalovich. The company grew rapidly as a pioneer of search engines in Russia and later diversified into cab dispatch services, e-commerce, and other businesses. This made Yandex one of the largest IT companies in Russia, and after listing on NASDAQ, it grew into a company with a market capitalization of approximately $30 billion at one point.

In 2014, Vologi left Russia and moved to Israel to pursue the development of self-driving cars and other technologies abroad. However, in June 2022, he stepped down as CEO of Yandex due to sanctions imposed by the European Union following Russia's invasion of Ukraine. These sanctions were lifted in March 2024.

Independence of International Operations and Birth of the Nevius Group

In July 2024, Yandex spun off its international business unit, completing a $5.4 billion spin-off. This created the "Nebius Group," based in Amsterdam, Netherlands

The new company, which Volozzi will again lead as CEO, will specialize in providing an AI cloud platform and aims to increase its competitiveness in the global marketplace.

Data center in Finland with over 1,000 AI engineersOther businesses include Toloka AI, a data partner; TripleTen, an educational technology business; and Avride, an automated driving unit based in Austin, Texas.
With the rapidly growing demand for AI infrastructure, Nevius is accelerating its expansion into global markets through innovation in cloud and AI technology.

Brand Reorganization and New Vision

In August 2024, Yandex N.V. completes a complete separation from its Russian operations and changes its name to "Nevius Group" upon shareholder approval.
As a new company, independent of its relationship with Russia, it has started down the path of focusing on building a global infrastructure to support AI.

Under Volosi's leadership, the Nevius Group is establishing itself as a major player in the AI industry. Leveraging the technology and assets developed as the international division of Yandex, the company is evolving into a provider of next-generation AI solutions.

What is the trading market?

Nebius Group (NBIS) is listed on the NASDAQ market in the United States under the ticker symbol "NBIS

What are the sectors, industries, and themes to which Nebius (NBIS) belongs?

sector

Information Technology: Nevius (NBIS) is a provider of large-scale AI-based computational infrastructure. The company also offers AI technology-based solutions such as data annotation services and automated driving technology,Information Technology Sector belongs to the

type of industry

Cloud Computing: Nevius provides AI cloud services that leverage high-performance supercomputers to provide computational resources for companies and research institutions to develop and operate large-scale AI models.
Business structure to provide cloud infrastructure and AI compute resources From,Cloud Computing Industry classified as follows.

Themes belonging to

Development of AI and Cloud Infrastructure and Data Utilization: Nebius provides cloud-based supercomputers as the computational infrastructure for AI,Platform business to support AI research and development development.
In addition, Toloka, a data annotation service, helps companies accelerate their AI development and improve accuracy.

Themes include the following areas

• Generative AI and large-scale language models (LLM) → Provides AI training environment
• cloud computing → Cloud-based AI compute resources
• data annotation → Data management for AI accuracy improvement
• Automated AI → Develop AI solutions for automated driving

Nebius, along with the evolution of AI technology,Cloud computing, AI model development, automated driving field The company is expected to grow in relation to themes such as

Dividends?

Nebius (NBIS) does not pay dividends.

The company is in a growth phase and its strategy is to reinvest earnings in R&D and business expansion.

Who are the competitors of Nebius (NBIS)?

Big Bear AI's main competitors include.

• Amazon Web Services (AWS) (AMZN): a cloud computing service provided by Amazon, the world's largest cloud infrastructure provider. Like Nebius (NBIS), it offers high-performance computing resources for AI model training and data processing.
• Microsoft Azure (MSFT): Microsoft's Azure cloud platform deploys AI computing resources and other cloud infrastructure for enterprises. Like Nebius, it offers supercomputing resources for AI model development and data analysis.
• Google Cloud Platform (GCP) (GOOGL): a cloud service provided by Google. It has a powerful computational infrastructure especially for AI and machine learning and competes with Nebius; Google's TPU (Tensor Processing Unit) is widely used for training AI models.
• NVIDIA (NVDA): Known as a GPU manufacturer, it offers an AI cloud platform, NVIDIA DGX Cloud, which creates a computational environment for large-scale AI training. The company competes with Nebius' AI Cloud business.
• C3.ai (AI): a leading provider of AI software platforms for enterprises. It leverages the cloud to develop industry-specific AI solutions, targeting the same markets as Nebius' AI cloud platform.
• Oracle Cloud (ORCL): Oracle's cloud platform, providing computational resources for AI model training and data management. It is particularly strong in AI workload optimization for enterprises and is a competitor to Nebius.

Nebius (NBIS) is uniquely positioned in the AI cloud infrastructure market to compete with these companies.

What is the size and growth potential of the industry to which Nebius (NBIS) belongs?

Cloud computing market size and growth potential

The cloud computing market is,Estimated at approximately $676.29 billion in 2024It is,Projected to reach $2,291.59 billion by 2032The company has been 

During this periodThe compound annual growth rate (CAGR) is 16.51 TP3TIt is considered to be a
This growth has been attributed primarily to the progress of digital transformation, cost reductions, and increased flexibility. 

Size and Growth Potential of the Cloud AI Market

The cloud AI market is,Estimated at about $894.3 billion in 2025It is,Projected to reach $3,634.4 billion by 2030The company has been 

During this periodThe compound annual growth rate (CAGR) is very high at 32.371 TP3TThe growth is being fueled by increasing demand for AI technology, the use of big data, and the proliferation of cloud computing.

Data Center Market Trends

The data center market is also expanding with the expansion of cloud services and increasing data demand,Projected to reach approximately 36.7 trillion yen by 2024The company has been 

In particular, advances in AI have increased demand for data centers, and leading technology companies are increasing their investments in AI infrastructure.
For example, companies such as Amazon, Alphabet, Microsoft, and Meta will reportedly invest a combined total of more than $300 billion in AI infrastructure by 2025. 

These market trends indicate that the cloud computing and cloud AI industry, of which Nevius (NBIS) is a part, is a sector that is expected to continue to grow at a high rate.

In particular, the widespread use of AI technology and increasing demand for data are key drivers of market expansion.

What are the differentiating factors and advantages of Nevius (NBIS) over its competitors?

Nebius (NBIS) has the following differentiators and advantages in providing an AI cloud platform

AI computing resources from high-performance supercomputers

Nebius is,Utilizes state-of-the-art supercomputers to provide a fast and efficient environment for training large-scale AI models and processing dataThe system is designed to allow research institutions and companies to quickly proceed with projects that require a vast amount of computational resources.
High performance compared to competitorsThe company is doing so.

Toloka, a comprehensive data annotation service

Nebius' Toloka is a platform for efficient data labeling and annotation, supporting the creation of high-quality data essential for improving the accuracy of AI models. With this service,Users can reduce data preparation time and costs, enabling rapid AI developmentThe first is the "A" in the "A" column.

Development and provision of "Avride" automated driving technology

Nebius has developed an automated driving technology called "Avride" and continues to provide AI-based automated driving solutions. This technology is,Combining the latest AI algorithms and high-precision sensor technology for safe and efficient automated drivingI am doing this.
Compared to competitors, Nevius hasThe company has an advantage in its ability to provide comprehensive automated driving solutions in conjunction with its own AI cloud platform.

Strategic partnerships with NVIDIA and Accel

Nebius is a member of NVIDIA (NVIDIA), Accel, and others.Work with key technology partners to leverage the latest hardware technologies and investmentsThe company provides cutting-edge AI technology and infrastructure to its users. It differentiates itself from its competitors.

These factors give Nevius (NBIS) a clear differentiation and advantage over its competitors in the AI cloud platform market.

Performance of Nebius (NBIS)

The financial year of the Nevius Group (NBIS) ends on December 31.
The quarterly schedule of financial results announcements is as follows

• First Quarter ResultsEarly May
• Second Quarter Financial ResultsEarly August
• Third Quarter ResultsEarly Nov.
• Fourth Quarter and Full Year ResultsMid-March of the following year

We omit performance data for Nebius because the figures prior to 2024 include data from the former Yandex, and the period of time for Nebius' stand-alone business data is short.

Nebius (NBIS) Stock Price

View the current real-time stock price chart (TradingView) for Nebius (NBIS).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

What is the future life and outlook for Nebius (NBIS)?

The Nevius Group (NBIS) is a leader in AI infrastructure and is expected to continue to grow significantly.
The following is a discussion of the company's future prospects and outlook.

Sales and Growth Projections

In December 2024, the Nevius Group willAnnual recurring revenue (ARR) projected to reach $750 million to $1 billion by the end of 2025I did.
This growth,The company's compound annual growth rate (CAGR) exceeds 250%, indicating the company's rapid expansion in the AI infrastructure market.

Financial Condition and Capital Financing

The company has approximately $3 billion in cash,The company maintains a sound financial base with no debt.However, the company also recognizes the need to raise more capital to close the capital gap with its competitors.

Stock Price Targets and Analyst Ratings

BWS Financial analyzes that the current growth rate of the Nevius Group and its forecast of positive Adjusted EBITDA by 2025 will drive the stock price up from its current level.
Other analysts also have a bullish view.

Business Expansion and Market Development

The Nevius Group owns data centers in Finland and colocation facilities in Paris and Kansas City, and is aggressively adding GPUs to meet surging demand.
This expansion strategy has made us more competitive in the AI infrastructure market.

Partnerships and Technology

The company is,Work with key technology partners such as NVIDIA (NVIDIA) to leverage the latest hardware technologies and investmentsThe company is doing so.
This differentiates the company from its competitors by providing users with state-of-the-art AI technology and infrastructure.

Overall, the Nevius Group is strengthening its leadership in the AI infrastructure market on the back of a strong financial position, aggressive expansion, and strong partnerships. These factors are promising for the company's future and its future growth.

Nevius Group (NBIS) Q3 2024 Financial Results Summary

Date of announcement: 24/10/31

Sales and Revenues

• Total SalesUS$43.3 million (vs. same period of the previous year)766% increase)
• Growth of AI Infrastructure BusinessChange from the previous quarter2.7 timesIncrease, YoY6.5 timesincrease
• Cloud business revenue (Nebius Cloud)Change from the previous quarter2.7 times increaseAnnual Sales Run Rate (ARR)Over $120 millionAchievement of

grace (of God, Buddha, etc.)

• Adjusted EBITDA (loss)($51.9 million) (YoY)23% improvement)
• GAAP net loss(-$51.8 million (deficit narrowed from -$96.8 million in the same period of the previous year))
• Adjusted net loss(-$47.3 million) (YoY)45% improvement)

Cash Flow and Financial Condition

• Cash and cash equivalentsUS$2,288.2 million
• Capital Expenditures (CapEx)US$167 million (up from the same period of the previous year)
• Operating Cash Flow(-$45.9 million, an improvement from -$255.3 million in the same period of the previous year)

Business Growth

1. Expansion in the AI Cloud Market
   • For the European marketMore than $1 billion in planned investmentspublished
   • New Cluster Opened in Paris with NVIDIA H200 Tensor Core GPUs
   • Plans to triple data center capacity (75 MW) in Finland
   • By the end of 2025Deployment of up to 60,000 GPUsplanning
2. Expansion of AI product lineup
   • Released "Nebius AI Studio
   • NVIDIA's Accelerated Computing TechnologyDeployment of cloud platform utilizing
   • Launches Soperator and Managed PostgreSQL for IK8S Cloud Service
3. Toloka (Data Annotation Business)
   • Generative AI projects account for more than 85% of revenue
   • Strengthening Alliances with Big Tech CompaniesExpanding data provision for LLM development by
4. TripleTen (edtech business)
   • Number of participants compared to previous yearthree timesIncrease to
   • UX/UI Design CourseMarket expansion with the introduction of
5. Avride (automated driving technology)
   • Uber andLong-term Strategic Allianceto Promote Development of Automated Delivery Robots for Uber Eats
   • In 2025.Hundreds of automated delivery robots to be installed

Future Guidance

• 4th Quarter 2024
  • Further accelerate capital expenditures, focus on GPU procurement and data center expansion
  • Continued revenue growth expected to raise Nebius Cloud's annual sales run rate
• mid-term
  • Full-scale investment in AI infrastructure in Europe to enhance competitiveness
  • Toloka's data services expanded to meet growing demand in the generative AI market
  • Further commercialization of Avride's self-driving technology and deeper partnership with Uber

Nebius is experiencing rapid growth in the AI cloud and generative AI markets, with further expansion expected beyond 2025.
Growth drivers are clear: increased investment in the European market, expansion of GPU clusters, and strengthening of the AI platform.
Through its work with Uber and NVIDIA, the company is establishing significant competitive advantages in the areas of self-driving and AI cloud.

Which brokerage firms can I buy shares of Nevius Group (NBIS)?

The following is a list of major brokerages that offer shares of Nevius Group (NBIS). At these brokerages, you can choose to invest as a CFD (Contract for Difference) in addition to direct stock trading as a foreign stock.

Some stocks handled may not be available for purchase. In such cases, CFDs may be used at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of the Nevius Group's (NBIS) business, its unique strengths, competitive advantages, and future prospects.

In the growing market of AI infrastructure, the Nebius Group aims for further growth with competitive services and a strong financial base.

 We have set a lofty goal of achieving annual recurring revenue (ARR) of $1 billion by the fourth quarter of 2025, and we are aggressively developing our business to achieve this goal. 

Although there are risk factors such as the threat of DeepSeek and increased competition, the company is expected to grow over the medium to long term against a backdrop of increasing demand for AI technology.