Meet Nebius Group: The New AI Stock That Could Become a Wall Street Darling in 2025

Artificial intelligence (AI) has been the talk of the town in the tech market, with stocks like Nvidia (NVDA) soaring on the back of AI's growth. However, many popular AI names are now trading at a premium, making it difficult for new investors to enter the market. But what if there was a new AI stock that could become a Wall Street darling in 2025, with the full support of Nvidia and trading at a massive bargain? Meet Nebius Group (NBIS -3.46%).

Nebius Group, a Russian company previously owned by Yandex, rejoined the Nasdaq exchange earlier this year after a three-year hiatus. The company offers AI-as-a-service, providing businesses and developers with access to GPU clusters and a cloud platform for building AI models. Nebius Group's unique partnership with Nvidia provides it with a competitive edge in the AI infrastructure market.

Access to Cutting-Edge Technology

Nebius Group's partnership with Nvidia gives it early access to the latest AI chips, such as the Blackwell chips. This allows Nebius Group to offer its customers the most advanced AI hardware available, giving them a performance advantage in developing and deploying AI models. For instance, ServiceNow used Nebius Group to increase throughput on their conversational chatbot from 400 evaluation tasks per week to as many as 3,000 tasks a day.

Reputation and Credibility

Nvidia's endorsement of Nebius Group lends credibility to the company, as Nvidia is a well-respected name in the AI industry. This can make Nebius Group a more appealing option for customers, partners, and investors, further enhancing its competitive position.

Expertise and Support

As a partner of Nvidia, Nebius Group has access to Nvidia's expertise and resources. This allows Nebius Group to provide its customers with specialized support and guidance on AI hardware and software. Nebius Group's website states that its customers will have access to Nvidia's AI experts, further enhancing the value of Nebius Group's AI-as-a-service offerings.

Scalability and Flexibility

Nebius Group's partnership with Nvidia allows it to offer scalable and flexible AI-as-a-service solutions. Nebius Group can quickly provision additional GPU resources as needed, allowing its customers to scale their AI workloads up or down depending on their requirements. This flexibility is crucial for businesses that need to adapt to changing demands or experiment with different AI models.

Financial Performance and Cash Position

Nebius Group's financial performance and cash position support its growth prospects and ability to invest in new technologies. In its most recent quarter, Nebius Group grew revenue by 766% year over year and trimmed its losses by 45%. The company also has nearly $2.3 billion of cash and cash equivalents and very little debt. Management expects the company's annualized revenue run rate to increase to the range of $750 million to $1 billion by the end of 2025.

Investment Opportunity

Nebius Group's stock is currently trading at around $20, which is a significant bargain compared to other AI stocks. The company's P/E ratio is around 8, which is much lower than Nvidia's P/E ratio of 47. This presents an excellent opportunity for investors to get in on the ground floor of a potential AI darling.

In conclusion, Nebius Group is a new AI stock that could become a Wall Street darling in 2025. With the full support of Nvidia and trading at a massive bargain, Nebius Group is well-positioned to capitalize on the growing AI market and compete with other AI infrastructure providers. Its unique partnership with Nvidia, strong financial performance, and cash position make it an attractive investment opportunity for those looking to get in on the AI boom.