Alright degenerates, let’s talk about NBIS—the AI infrastructure company that Wall Street has been sleeping on but might be gearing up for a major post-earnings rip.
This company spun out of Yandex, but thanks to all the geopolitical drama, a lot of people still don’t know what it actually is. TL;DR: It’s basically Russia’s ex-Google Cloud, now reborn as an independent AI infrastructure company based in the Netherlands. They’re competing in the high-performance AI cloud space alongside CoreWeave, AWS, and Azure—except they’re still valued like some no-name SPAC trash.
Now, let’s get into the bull case.
Why NBIS is Undervalued
1. Earnings & Growth
• Revenue for Q3 2024: $43.3M (up 766% YoY)
• Annualized Run-Rate (ARR): $120M+ as of September 2024
• Guidance for 2025: Expecting $750M-$1B in revenue
• 6x–8x revenue multiple (compared to CoreWeave’s 14.5x)
Wall Street is still pricing NBIS like a small-cap while it’s already scaling revenues like a top AI infrastructure player.
2. $700M in Fresh Funding
• December 2024: Raised $700M in a private placement from Accel, NVIDIA, and Orbis Investments at $21/share
• Well-funded to scale their massive GPU clusters, eliminating AI capex concerns
DeepSeek’s AI bubble pop made investors scared of AI infrastructure capex, but NBIS has $2.2B in cash and doesn’t need to burn another $10B to stay competitive.
3. Goldman Sachs Coverage Incoming?
• Goldman handled their PIPE deal and was expected to initiate coverage in January, but they might be waiting until earnings (Feb 20) or until PIPE investors file
• Once they drop coverage, expect institutional inflows
If Goldman drops a buy rating and earnings are strong, this thing is sending.
4. CoreWeave Valuation Peg
• CoreWeave is now valued at $29B (14.5x revenue multiple)
• NBIS is currently trading at 6-8x revenue, well below CoreWeave
• If we apply a 14.5x multiple, NBIS should be worth $15B+ today
• Current implied valuation? Sub-$9B
At a fair valuation of 14.5x sales, NBIS should be worth $60+ right now.
5. Data Center Expansion = More GPUs
NBIS is investing $1B+ in AI infrastructure across Europe and the US:
• Finland: Expanding to 75MW, housing 60,000 GPUs
• Paris: New GPU cluster featuring NVIDIA H200 Tensor Cores
• Kansas City: Launching new GPU cluster in Q1 2025, expanding to 40MW (~35,000 GPUs)
The Setup: Feb 20 Earnings = The Catalyst
• Goldman coverage likely post-earnings
• Guidance expected to confirm 2025 $750M-$1B revenue
• Market still clueless about their scale
If earnings confirm continued growth and institutional coverage hits, we could see a massive repricing.
Conclusion: This Is a Classic Asymmetric Bet
At 6-8x sales, NBIS is still undervalued for an AI infrastructure company growing 700% YoY. CoreWeave is already valued at 14.5x revenue, and NBIS should be worth at least $60+ today.
Feb 20 earnings + Goldman coverage = massive upside.
This isn’t financial advice, but I just bought a metric ton of shares.
See you at $120.