Nebius: The Only Hyperscaler Worth Buying Right Now
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Andres Veurink265 FollowersFollow5ShareSavePlay(21min)CommentsSummaryNebius is rated a Strong Buy, driven by a robust balance sheet, rapid hyperscale expansion, and significant AI infrastructure contracts with Microsoft and Meta.NBIS targets 1 GW active usage by 2026, with the Microsoft deal alone valued at $17.4 billion over five years, supporting aggressive revenue growth.Despite current EBITDA losses, NBIS’s low pricing strategy and reinvestment plan position it for margin expansion and sustainable profitability as GPU capacity scales.Strong cash reserves and manageable leverage enable NBIS to aggressively add GPUs, offset depreciation, and capitalize on hyperscaler demand, supporting a compelling forward valuation. VectorMine/iStock via Getty Images Investment Thesis Nebius (NBIS) might be the best hyperscaler to be buying right now, as it has a seriously strong balance sheet and a clear path to scaling rapidly and leveraging this to offset theThis article was written byAndres Veurink265 FollowersFollowMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specifically SaaS and cloud business. I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughs and research is done only by myself.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NBIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.