We recently compiled a list of the 5 Stocks Jensen Huang’s Company is Betting On. In this article, we are going to take a look at where Nebius Group N.V. (NASDAQ:NBIS) stands against the other stocks.
Nvidia has a reputation for identifying high-quality companies in their initial stages and betting on their success. Last year, the company participated in more funding rounds than any other company in the US, behind only Alphabet. In the past, it has invested in startups like OpenAI, Perplexity, and Mistral, so when the chipmaker puts its money in some company, people are bound to notice.
A similar occurrence happened when the firm filed its recent 13F report. There were some clear omissions and needless to say, the stock prices of those companies tanked as the market digested the news of divestment. For those still on the list, the stock price reacted positively.
As the Santa Clara-based chipmaker proceeds with these investments, there is also the threat of regulators increasing the scrutiny based on anti-competitive practices. The firm is already facing the threat of anti-competitive charges in France and at home, and the recent acquisition of Run:ai continues to be under scrutiny. It must be said, however, that these challenges do not necessarily have any negative impact on the companies that made it to the 13F.
We decided to take a look at the stocks still on the 13F filing and find out what’s attracting the chipmaker to these companies. Do they have a moat? Are they still worth buying for the average investor? Or have the stocks already rallied too much?
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
Nebius Group N.V. (NASDAQ:NBIS)
Nebius Group N.V. (NASDAQ:NBIS) is an infrastructure player in the AI industry. It offers a cloud platform for AI workloads and builds large GPU clusters and cloud platforms for customers. When the quarterly corporate filing came out, the stock gained 12%.
This isn’t a significant bump in price, but that is partly because the market was already aware of the exciting opportunity that Nebius Group N.V. (NASDAQ:NBIS) presents. Back in December, Citron Research called the company’s CEO ‘the real deal’. They believe the stock could become a Wall Street favorite:
A sleeper with no analyst coverage yet, the market hasn’t caught on to its massive potential
Last month, Hedgeye also initiated the stock as a new long idea. Analyst Felix Wang pointed out the fact that the company had no debt with about $2.2 billion in cash. The company could be profitable by early next year and could become a popular AI stock well before that inflection point.
Overall NBIS ranks 4th on our list of the stocks Jensen Huang’s company is betting on. While we acknowledge the potential of NBIS as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NBIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
