Nebius Seeks Major Growth with Nvidia’s GPUs
Nebius Group (NASDAQ: NBIS) deployed Nvidia’s GPUs in their data center operations, aiming for an annual run rate of $7 billion to $9 billion by the end of 2023. As of Q3, the company reported an annual run rate of $551 million, indicating significant potential growth in a booming AI market. The company operates clusters in both the U.S. and Europe, having pivoted from its origins in Russia following geopolitical sanctions.
Despite a current sales valuation of 65 times revenue, this figure drops to 7.1 times when considering projected future sales. However, Nebius is prioritizing growth over profits, accruing substantial debt to finance its expansion plans. Investors are advised to consider both the high-risk nature of this strategy and the demand for AI computing infrastructure as the market develops through 2030.
