TL:DR :
* Company makes infrastructure for AI workloads at extremely impressive efficiency levels. Proprietary configuration for GPU clusters (first in NA to complete in Q1), has efficiency levels and compute performance beyond that of Tesla's latest creation, which NVDA Jensen said described as remarkable. Tip of the iceberg
* $700 mil invested by NVIDIA, who is supplying H100 Hopper GPUs for their cluster models with the first being constructed in KC, with plans to integrate Blackwell GPU H2 2025.
* Minimal debt totaling $27mil with a near $2bil in cash, $1bil+ planned infrastructure development in 25', with ARR forecast of $750m-1b
Primary focus is not some unremarkable data processing system that every SV chump and his grandma are pushing down throats. Nebius was sitting on some already profitable infrastructure in Finland and decided they could expand, replicate and improve across Europe and North America.
They were able to secure listing on the NASDAQ, and quickly obtained a $700 mil investment from Nvidia. Contrary to the few posts from your normal run of the mill bullshit like Motley fool etc..., this part on it's own is actually meaningless. Companies the size on Nvidia throw hail mary's at startups all the time and don't blink when they fail. However, in the context of their lofty development goals, this was their entry point to securing the hardware they needed to succeed, of which there is a finite supply.
Nebius plans to house 35,000 GPU's upon completion of the KC facility (20,000 by year end), utilizing the latest and incredibly efficient NVIDIA H200 GPUs
Alongside this, their facility in Finland is getting an overhaul and expansion, and a new facility will be constructed in Paris.
This is early days, P/S incredibly low in the peer group, which is insane considering the ridiculous multiples on all of the other shit doing nothing in this space. Industry trends are a massive tail wind. If they stay true to growth projections it's only a matter of time before it balloons, and Q1 is an excellent test of their reliance and ability to meet targets.
They received their first buy rating today from some garage shop trying to play wallstreet dress-up, but institutional money is going to be eyeing this closely, and they have an added advantage of their global footprint for managers looking to reposition this far into the secular bull.
As far as revenue goes, they reported $43 million in Q3 2024. They anticipate ARR to surpass $700 mil by year end. If we want to keep valuations reasonable relative to peers, this company should be valued well above 15 billion by year end, making a $65 share price entirely reasonable as the market plays catch-up.
While searching for appropriate contracts, I discovered zero liquidity on every prominent strike from this week until 2027. On Jan 9th open interest spiked an hour into close across most 40, 45, and 50 strikes. Begun building a position here and will continue to do so as I raise cash.
As of today:
72 Shares Cost Basis $29.15
4 45C May 16
1 40C Feb 21
https://preview.redd.it/n1xyv8vx90de1.png?width=738&format=png&auto=webp&s=61b5c040a5f2da563a664caa45caf11528d88358
Plan on buying more when VIX falls below $18