Analytics (1) 21.07.26

After the huge sell-off of technology stock we might be in the point where we are able to set strike at good levels for high quality stocks that have a mutual business. Nvidia invests in Nebius’s artificial intelligence (AI) cloud infrastructure in exchange for Nebius acting as a primary, large-scale buyer and host of Nvidia’s advanced hardware.

We assume that pairing Nvidia and Nebius Group as the perfect “Pick-and-Shovel + Express Pipeline” strategy for the AI revolution which might be just around the corner. So instead of choosing between a blue-chip fortress and a high-growth potential equity, holding both gives you dual-layer exposure across the entire AI stack.

Nebius Group N.V. [Internal score 53/100] is a European technology company headquartered in Amsterdam, created following the restructuring of the former Yandex N.V. Nebius AI is the company’s primary driver. It is a cloud platform providing access to large-scale GPU clusters for training large language models.

Nebius works closely with NVIDIA, which supplies the company with GPUs and invests in expanding its infrastructure. In July 2026, Nebius unveiled a new scalable business model. Now, third-party partners can build and finance AI data centers worldwide, while Nebius will provide its architecture, software, and access to these hardware suppliers, taking a share of the revenue or licensing fees.

According to financial reports Nebius revenue soars. Current LTM Revenue equals to $878M vs $530M for the 2025. It is expected that in 2026 Nebius will earn $3.3B of revenue and EBITDA is forecasted above $1.3B level vs $254M in 2025.

NVIDIA [Internal score 70/100] is one of the largest AI infrastructure companies and the “printing press” of the AI era. NVIDIA maintains its status as one of the most valuable companies in the world. It sells not just GPUs (Hopper, Blackwell, Rubin families), but complex computing clusters, including high-speed switching (InfiniBand/Spectrum-X) and the CUDA software stack. Customers buy NVIDIA’s architecture not only for the chips, but also for the software called CUDA. All the world’s AI code is written on CUDA. Operating margins are maintained at extraordinary levels for a hardware company. The bulk of its revenue is generated by four to five large cloud providers (Amazon, Alphabet, Microsoft, Oracle and others).

According to the results of the 1st quarter NVIDIA’s revenue increased 85% y-o-y and exceeded $81.6B. Net income was more than twice higher than for the same period of 2026 equal to $45.5B. It is forecasted that revenue level in the 2nd quarter will increase 96% y-o-y and its level would be $91.7B. Net income again would show 2x increase comparing to 2Q of 2025.

Both stocks have sold off on sentiment rather than on anything that changes the numbers above. NVIDIA is up only 5% year-to-date against a semiconductor sector up nearly 60%, and Goldman Sachs calls the resulting 21.7x forward multiple compelling versus its five-year average of 72x. Nebius has fallen 36% from its June peak in a sector-wide “neocloud” derating, triggered largely by fears that Meta could compete with independent cloud providers, even though Meta remains one of Nebius’s largest committed buyers. Upcoming earnings, NVIDIA on 26 August and Nebius on 6 August, are the near-term events that could re-rate both stocks back towards their underlying growth.