NBIS — 20 entries on this page, 1 of them a change of direction.
We trimmed down on the position in Nebius. Yeah, we should maybe clarify, when we say NeoClouds, Nebius, CoreWeave, IREN. Those are the three most popular, I think, that I see on social media all the time,
Now, the last stock I want to discuss in detail is Nebius. Recently, their CEO announced that Nebius is now introducing spot pricing and dynamic pricing features , which is very exciting.
He said, " As we say, AI infrastructure is the least interesting part of the most interesting sector of the AI industry." In my opinion, AI infrastructure is great, but many people dislike it and I think the most boring aspect of it is the debt.
Uh NBIS was another one that was mentioned uh in the chat as well. This has been another really great trader for us. NBIS only up a percent here today. We actually still have the tuning fork here on the daily.
We'll see if that if that ends up working out here, but NBIS um we're still under the Thursday high.
Now, at least Nebius isn't that bad. Nebius actually has a decent balance sheet. I mean, they've got about $5.5 billion Dollar... I don't have exposure to Nepos, but they have about $5.5 billion in plants, real estate, and equipment.
$8.5 billion in long-term debt. But they have $1.48 billion in bills in cash. So, that's not bad. We have some liquidity here. I like that.
On today's episode, what I really want to cover is two NeoCloud players, Nebius and Core just reported some amazing announcements.
All right, so I want to start off with Nebius Nibbius. This is a community favorite, right there. This is probably one of the most popular NeoCloud stocks out right now. I also do want to say it's the best performing.
I think year to date, the stock is up about 126%.
Uh the first piece of news I have is on Nebus, ticker NBIS. Nebus, ticker NBIS.
Now, let's get back to Nebius here. NBIS been a great trading stock for us. Uh, another big AI name. Now, there is some news causing it to gap up here today. Nebus Group, which is ticker NBIS, their stock rose over 9% in Thursday's pre-market trading following reports that the AI infrastructure company plans to raise prices across its GPU cloud services by about 20% as computing capacity remains tight.
Nebius is reportedly raising prices across its GPU cloud services, underscoring tight supplies of artificial intelligence computing capacity. And those new prices are set to take effect October 1st and cover several Nvidia Corporation GPU models.
That's ticker NVDA, by the way. Those models include the H100, H200, B200, and B300. And that is according to a Wall Street CN report carried by FU.
Nebus obviously is going to be issuing a ton of debt into the future as they sort of enter that phase of their business and how much of that is going to be at different rates if it's US lenders.
One of Pounders's partners, Nebius, is up after hours. They are increasing GPU rental prices by 20% on October 1st.
which moves me into my pick which is actually a stock where if we see the same headline it's going to be the exact same thing and that's a neocloud or AI hyperscaler as some like to call it that's Nebus and it's the same story and I think Nebus with the story of of this weekend could also get hit because Nebus is a big winner when it comes [snorts] to well open source models open weight models taking more and more market share in this whole AI story.
They don't care which model you use. They just want to see usage come in.
which moves me into my pick which is actually a stock where if we see the same headline it's going to be the exact same thing and that's a neocloud or AI hyperscaler as some like to call it that's Nebus and it's the same story and I think Nebus with the story of of this weekend could also get hit because Nebus is a big winner when it comes to well open source models open weight models taking more and more market share in this whole AI story.
They don't care which model you use. They just want to see usage come in.
Thinking about it, says, "Be owned at 10. My worst regret is sale at 18." I share that because I had NBIS at 17 and a half, sold it at 23 24. Thought I was doing great.
We also saw "Nebulas" rise by about 7%.
Um, and I do think the full stack uh play in in data centers is not going away. And Nebius, although it's messy and kind of ugly, will be a buy again. But I'm looking at 180 and lower to own it.
Do you think NBIS price is overextended? to me it looks like it hold on a second. I just got logged out of there must been some kind of update. There was no update. Okay. Well, it just logged me up for It said f your token.
Refresh it. Yeah. I don't know why though. All right. Um, so it it was extended at uh or or pretty close to being extended at one point back in August. It's come back in. Uh, it still could, you know, continue cooling off a little bit more.
Um, I to answer your question directly, I don't think it's it's extended. I guess it depends on if you look at some longer time frames. Um, the weekly doesn't look extended to me. uh monthly it's coming off of being extended because this thing had an RSI that was well over uh you know 70.
It was up to in the 80s actually uh just a few months ago. So I think that it's it's coming off of being extended. Um so the answer I guess is no. I don't think it is. I just think that it's it's trying to look for a bottom right now.
Um I don't know if that's going to be here right at 200. Seems like that kind of would make sense. Uh but there is a little bit of a gap that hasn't quite been filled yet. Pretty close, but not quite.
Let's see here. Was that uh 193? And this was what 195. So there's like a maybe $2 that we didn't fill this gap uh that was created back on August 11th to 12th. Um but if we, you know, if we can hold this uh these, you know, this area here around 19520, who's to say this doesn't turn around?
But to answer your question, no, I don't think it's extended. It's just it's it's coming off of being extended.
And second, this category includes the Neoclouds, specialized AI infrastructure providers like Cororeweave, Nebius, and Iron, which are the focus of this video. One of them is the pretty clear winner, and I'll show you which one when we compare them.
There are three big reasons to focus on Neoclouds above other kinds of companies, at least for the near- term. First, they have deals with every kind of AI buyer, from startups like Perplexity and Figure AI all the way to the hyperscalers themselves.
That means that even their direct competitors are their customers.
All right. Now, coming in at um number two here, holding number two, uh we have a company that actually houses and runs much of Nvidia's own hardware, and that's in Nebia's Group, ticker symbol NBIS, which at about $330 million is still only worth half of 1% in the portfolio.
But Nvidia is clearly investing in this neo cloud operator for their giant high-performance data centers that get packed with Nvidia's latest GPUs. Which Nebia's then rents out all of that high computing power to other companies that need it, but don't have all the same infrastructure and expertise as Nebia's to run it, or sometimes even the software or platforms.
Goldman Sachs just came out with a glorious price target for Neveah stock, which is also the company that just partnered with Nvidia on releasing their ultra-fast token inference chips via Groq.
They'll be one of the first actually providing access to those chips to compete with the ultra-fast token generators of Cerebras for that low latency, almost imperceptible latency artificial intelligence that you can get from these SRAM chips.
Coreweave, I ran, Nabias are just getting started.
Nebus gets an upgrade from Goldman. It's now a $ 59 billion company. It's pretty small as a NeoCloud. Still down from peak of $300 by oh about 27ish% down from peak.
So this was the note on Nebas. This uh I want to I think this was Goldman latest commentary on continued strong demand for Nebius AI infrastructure. Now keep in mind Nebius just had the uh Gro partnership announced with Nvidia.
So Nebius uh is providing the first Grock uh production chips uh production chips for ultra fast tokens, right? That's your cerebrous comparison.
And again, and you get those non-refundable deposits that companies like a Sandis keeps. You know, Sandis got a lot of upfront capital by the way for and this happens with a lot of the hypers scale the neoclouds as well you know whether it's um an NBIS or whatever they get a lot of upfront money so they could sort of keep investing in the infrastructure and people see that upfront money and and think oh my gosh this company has so much cash flow but forget that that's actually a prepayment for contracts years out they get cancelled you're not getting those extra deposits again so that does create a potential downside when those cancellations come.
Now, next we get to the fast-growing companies, and we have two of them. We're going to start off with Nembus Group. This is one of the most popular stocks online. It's one that everybody is getting in on except for Michael Burry.
Michael Burry listed that he was short this company at around $210 per share. So, the fact that it's up 23% today is not helping out his short. Right now, he's already deeply in the red on it, but maybe he can hold it long enough that it will go back down.
Either way, Michael Burry has a lot of things working against him with this short position.
