NBIS USNebius Group N.V.BATS:NBISA3MInvestments🌎Nebius (NBIS) — Strong Growth on the AI ​​Wave In Q3, revenue from the core data center business reached $146.1 million, a staggering 355% year-over-year growth. The partnership with Microsoft is fundamentally changing the scale of Nebius's business. Annual recurring revenue (ARR), the company's key metric, is projected to be $7-9 billion next year, up from $0.9-1.1 billion this year. This implies sevenfold growth and is a conservative valuation, given the potential for new deals. Nebius is a select NVIDIA partner, providing it with priority access to the most advanced GPUs (AI chips). The launch of its own inference platform (deployment of AI models) enhances Nebius's overall value proposition, enabling customers to implement their AI-based solutions faster and more efficiently. Although the company is still unprofitable overall, gross profit is growing at a faster pace (+365% year-on-year), and margins have increased by 2 percentage points. This is a key indicator of future profitability. Adjusted EBITDA losses narrowed by 89% year-on-year to $5.2 million, and the core AI infrastructure division is already profitable on this metric with a 19% margin. Compared to some competitors (such as CoreWeave), Nebius uses a less aggressive debt strategy, mitigating the risk of a slowdown in AI investments. The company is expected to achieve operating profitability by fiscal 2027-2028, with the potential to achieve positive adjusted EBITDA as early as next year. Following the earnings report, shares fell 40% from their peaks, bringing an attractive entry point closer. The market overreacted despite outstanding fundamental results.