NBIS Stock: Buy Before November 11th? – What to Know

Generated Title: Nebius: Next Big Thing or Overhyped Hype Train? Here's My Take

Okay, friends, let's talk Nebius. This company, formerly Yandex, has been making waves in the AI infrastructure space, and the question on everyone's mind is: is it the real deal, or just another flash in the pan? Shares are up over 340% this year—that's the kind of growth that gets your attention. But as someone who's been watching this space for a while, I think there's more to this story than just hype.

The AI Infrastructure Gold Rush

What does Nebius do exactly? They're basically renting out high-powered AI muscle—specifically, access to Nvidia GPUs through the cloud. Think of it like this: in the Gold Rush, the guys selling shovels and pickaxes made more money than most of the prospectors. Nebius is selling the "shovels" for the AI revolution. They're competing with companies like CoreWeave and Oracle, but the demand for AI infrastructure is so intense right now, there's plenty of room for multiple players.

Now, let's talk about the elephant in the room: that massive $17.4 billion deal with Microsoft. Seventeen point four billion! That's not chump change. It's a game-changer. Nebius is expanding its data center footprint like crazy—Kansas City, New Jersey, Iceland, France, Finland, Israel… they're building a global network of AI power. And that Microsoft deal? It’s not just about the money; it’s a validation of their technology and approach.

But here's the thing: with great power comes great responsibility, right? The author of the original article rightly points out that Nebius is now heavily reliant on a single customer. What happens if Microsoft decides to shift gears? That's why I'm really curious to see if Nebius is actively pursuing other hyperscalers like Amazon Web Services or Google Cloud Platform. Diversification is key to long-term stability.

And speaking of long-term, building AI infrastructure is expensive. Nebius has $1.7 billion in cash, which is great, but they're going to need more. The company brought in $1.15 billion in a public offering in September, as well as $3.16 billion in an offering of senior convertible notes. I'm eager to hear management's plan for capital allocation. How are they going to balance growth with financial prudence?

One thing that's particularly interesting is Nebius's gross margin which is listed as -2007.45%. That number seems absolutely wild. I'm no financial expert, but I'm definitely going to be looking for some clarification on what's going on there.

The original article suggests waiting to see what management says during the earnings call, and I agree. But I think there's a bigger picture here. This isn't just about one quarter's earnings. It's about the future of AI and Nebius's role in it.

Honestly, when I read about companies like Nebius, it reminds me of the early days of the internet. Remember when everyone thought the internet was just a fad? Now it's woven into the fabric of our lives. I think AI is on a similar trajectory, and companies providing the infrastructure are going to be incredibly valuable.

Here's my personal reaction: When I see a company like Nebius taking on the challenge of providing AI infrastructure, I feel a surge of optimism. This is the kind of ambitious project that pushes the boundaries of what's possible.

But, let's be real, there are risks. The stock market is a fickle beast, and Nebius has become a darling of retail investors, making it potentially vulnerable to volatility. As the author of the original article also notes, momentum stocks can be dangerous. Still, I think the long-term potential outweighs the short-term risks.

The Stock Split Question

The other big question is: will Nebius do a stock split? Right now, the stock is trading around $120. It's not outrageously expensive, but a split could make it more accessible to smaller investors. But it's not quite there yet. The author of the second article makes a good point: companies usually split their stock when the price gets prohibitively high, like Chipotle at $3,200 a share. If Nebius hits $500, then we can start talking seriously about a split. Stock-Split Watch: Is Nebius Group Next?

I think Nebius is in a great position. They're riding the AI wave, they have a massive deal with Microsoft, and they're expanding their data center footprint. But they need to manage their growth carefully, diversify their customer base, and maintain financial discipline.

So, What's the Real Potential?

Nebius isn't just another overhyped stock. It's a key player in the AI infrastructure revolution. The risks are real, but the potential is even greater. This is a company that's building the future, and I, for one, am excited to see what they do next.