PPB Group Aims for Growth and Consistent Dividend Payouts

PPB Group aims to reward shareholders with consistent dividends while focusing on capacity building and automation for future growth. The conglomerate's FY25 and 3Q25 financial results will depend on the performance of its 18.8% equity interest in Wilmar International Ltd.

Nebius Group, a neo-cloud provider specializing in AI-native cloud infrastructure, has seen its stock price skyrocket since the announcement of a significant deal with Microsoft. The company's shares, which resumed trading on Nasdaq in October 2024 at around $14.29, have since climbed to approximately $110 on October 2, 2025, nearing its record high of $117.65 [1].

The primary catalyst for Nebius' stock run-up is a five-year AI infrastructure contract with Microsoft, worth $17.4 billion, potentially expanding to $19.4 billion. This deal, announced in early September 2025, provides Microsoft with access to over 100,000 Nvidia GB300 chips and has sparked a 44% jump in Nebius' share price [7][8]. The contract is seen as a long-term revenue anchor and validation of Nebius' AI cloud platform [9].

Nebius' financial performance has been robust. In Q2 2025, the company reported revenue of $105.1 million, more than doubling sequentially and beating estimates. This performance yielded a net margin of 99.34% and a return on equity of 6.14% [5]. Analysts expect revenue to grow at a compound annual rate of 231% through 2027, with EBITDA turning positive in 2026 and reaching $852 million by 2027 [6].

To finance its expansion, Nebius launched a $3 billion capital raise, including $2 billion in convertible notes and $1 billion in a public offering. The proceeds will fund additional compute hardware, land, and data centers [10]. This funding comes after a significant surge in the share price triggered by the Microsoft deal, with shares rising roughly 245% year to date before the offering [29].

Wall Street analysts are largely bullish on Nebius. The consensus rating is "Buy," with price targets ranging from $75 to $130 [11]. Analysts view Nebius as reasonably valued relative to its aggressive growth prospects but warn of potential cash burn and dilution [13].

However, Nebius faces several risks. Execution risk and capital intensity are significant concerns, as building new data centers and procuring GPUs require substantial capital. The company will likely continue to raise debt or equity, causing dilution or increasing leverage [45]. Additionally, the Microsoft contract represents a large portion of projected revenue, highlighting revenue risk if the partnership falters [46].

Despite these risks, Nebius' trajectory is promising. The company sits at the nexus of two powerful themes: the surge in generative AI and the scarcity of high-performance compute infrastructure. The Microsoft contract propels Nebius from a niche player to a credible alternative to hyperscalers like Amazon or Microsoft's Azure [23].