Update: Nebius (NBIS US) Secures Strategic Investment Led by NVIDIA
Strategic Funding to Accelerate GPU Buildout
I. UPDATE
Nebius (NBIS) recently announced an oversubscribed $700 million strategic equity financing led by prominent investors, including NVIDIA, Accel, and Orbis Investments. This funding will accelerate the rollout of its full-stack AI infrastructure, enabling the company to expand its GPU capacity and meet growing demand. Based on the $700 million capital raise and an estimated cost of $38K per GPU, the financing could support the deployment of approximately 18,400 GPUs. This positions Nebius to achieve its 2025 annualized run-rate revenue (ARR) target of $750 million to $1 billion.
Since A Capital Research first highlighted Nebius on November 24, the stock has approached our prior base case valuation of $30.07, reflecting strong market momentum and confidence in its strategic direction. Using an 8.0x EV/ARR multiple, Nebius’s core business could be valued at $7.0B, or $29.77/share. Adding $1.3B in non-core assets, such as stakes in Toloka AI and ClickHouse, and a $1.7B net cash position, the total NAV stands at $42.40/share, implying a 49% upside from the current trading level of $28.44.
Key risks include execution challenges in deploying GPU capacity, meeting ARR targets, and broader uncertainties in AI infrastructure demand. The potential timing of revenue growth relative to investment deployment also remains a consideration.
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