My Previous Doubts. Let’s start with my initial bear case and why I didn’t believe $NBIS was a good long-term hold. I shared this back in March but will detail it again. https://www.wealthyreadings.co... It centered on commoditization. I believed $NBIS was renting GPUs, like many other

Before We Start. There are a few conditions befor reading this write-up, which could be in a dedicated “risk” section, but I’d rather start with them as they are core beliefs that must be held for the investment to make sense. AI is real. If you’re reading this, I assume you’re

Nebius History. I don’t usually do historical context, but it’s important here, as $NBIS legacy gives the company an unfair advantage in its market. The story starts with a Russian company named Yandex, often compared to Google as they operate one of the largest search engine in

Neoclouds & Hyperscalers. Two complex terms which refer to similar businesses: renting compute to those who need it. The difference lies in scale and specialization. Hyperscalers focus on the largest portion of the market, high-volume training and inference demand without much

Compute Demand & Supply. Today, demand far outpaces supply, givign room for both hyperscalers and neoclouds. The question of market dominance will come later and this write-up will detail why I believe $NBIS could emerge as a winner regardless. Let’s first focus on demand and

Business Model. Having established the demand for $NBIS services - for hyperscalers & neoclouds at large, let’s explore how they make money. It’s simple, which I appreciate: they rent compute. While strategies vary, $NBIS' management works closely with clients with a business

Customer Base. Now that we know what $NBIS does, let’s examine who they serve. Nebius targets three client types, with enterprises as their ultimate goal, aligning with our core belief that AI will create economic value and real-world services. First, AI Startups. The natural

Why Nebius? In a few words, with details to follow. $NBIS offers the best price-to-quality ratio due to its vertical integration of hardware and software, and its focus on efficient energy sources. In an industry where a second of delay can cost millions, equal performance at

So… Why Nebius? In brief, $NBIS has optimized hardware in optimized datacenters and proposes user-friendly software, customizable, with above-average benchmark results at competitive prices. They own the full technology stack for training and inference as a service -pretty rare

Subsidies & Equity. Let’s start with the subsidiaries. Avride. Avride focuses on autonomous vehicles and their applications, already generating revenue at a small but rapidly growing scale. Mobility. Avride develops autonomous vehicle systems equiped of 5 lidars, 4 radars, 11

Financials. $NBIS is a growth story, early in its journey after its separation from Yandex in 2024, so YoY comparisons are irrelevant as it compares different business models. So there isn’t much to say in terms of financials. The important data to focus on is its sequential

Valuation. I usually do not share valuations in my investment thesis as data changes fast and I do quarterly valuations during earnings reviews. If you read those lines post Q3-25, you should look at my last earnings review, my valuation will be updated there. At time of

Conclusion. This should give you the keys to understand $NBIS from A to Z. A business adapted to its time as demand continues to ramp up and cannot be satisfied by actual supply, a competitive service against both hyperscalers & neoclouds thanks to an unfair start and a vertical

If you liked this content, you will find much more like it on my substrack with many more focused on beating the market and reach above average returns over the long term. $NBIS Nebius Investment Thesis | Direct Link 👇 https://www.wealthyreadings.co...

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