This Technology Stock Could Turn $1,000 Into $10,000

• Nebius is benefiting from the ongoing shortages successful AI infrastructure capacity.

• The institution plans to rapidly grow information halfway capacity.

• Demand visibility is precocious for the company.

• 10 stocks we similar amended than Nebius Group ›

Nebius (NASDAQ: NBIS) is simply a full-stack artificial quality (AI) infrastructure company. Through its unreality platform, it provides enterprises with on-demand entree to high-end graphics processing units (GPUs) for grooming and inferencing AI models.

Shares of the Amsterdam-based institution person soared by much than 207% truthful acold this twelvemonth (as of the adjacent of trading Dec. 30) and could rally further successful the coming months. In fact, a $1,000 concern successful this banal could turn to beryllium worthy $10,000 by 2031.

Electricity availability remains 1 of the main bottlenecks successful the planetary AI infrastructure buildout. To code this constraint for itself, Nebius successful November announced that it aims to unafraid 2.5 gigawatts of contracted powerfulness by the extremity of 2026, up from the 1 gigawatt it said it was aiming for arsenic precocious arsenic August. The institution has besides already presold overmuch of the capableness astatine its soon-to-be-opened information centers successful the United Kingdom and Israel, which are being fitted with Nvidia's latest Blackwell GPUs.

So far, Nebius has besides demonstrated beardown execution, rapidly converting its caller capableness into revenue. Third-quarter revenues soared by 355% twelvemonth implicit twelvemonth to $146 cardinal arsenic it afloat sold its disposable capacity.

Nebius besides enjoys exceptional request visibility. The institution has entered into a $3 billion, five-year woody to proviso processing powerfulness to Meta Platforms and a $17.4 billion, five-year woody with Microsoft. Based connected its outlook, the institution is aiming for an annualized tally complaint of betwixt $7 cardinal and $9 cardinal by the extremity of 2026.

Analysts forecast that Nebius' revenues volition surge from an expected $555.9 cardinal successful 2025 to $27.1 cardinal successful 2031. Currently, the institution trades astatine a lofty valuation of astir 64 times sales, but see this. Suppose its apical enactment follows its expected maturation way and its P/S aggregate gradually compresses to 8.5 successful 2031 -- successful enactment with the valuation of an mean information halfway existent property concern spot (REIT). Under this reasonably plausible scenario, the company's marketplace capitalization would beryllium supra $230 billion. That's much than 10 times its existent marketplace capitalization of $21.4 cardinal (as of Dec. 30), which would marque Nebius a 10-bagger stock.

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