5 Stocks Powering Portfolios by Double Digits

In this article, we will look at the 5 Stocks Powering Portfolios by Double Digits. For a deeper discussion and an extended list, please see 10 Stocks Powering Portfolios by Double Digits.

The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels

5. Nebius Group NV (NASDAQ:NBIS)

Nebius climbed by 33.2 percent week-on-week, as investor sentiment was primarily driven by reports that it is venturing into a full-stack AI company with its planned acquisition of Israel-based artificial intelligence startup AI21.

According to a report by The Information, Nebius Group NV (NASDAQ:NBIS) is setting its sights on AI21 following the latter’s failed $3 billion merger plan with Nvidia Corp.

AI21 Chairman Amnon Shashua said earlier this year that the company is exploring strategic options with Nvidia and other buyers. Negotiations with Nvidia hit late stages, but later failed.

In other news, Nebius Group NV (NASDAQ:NBIS) received an optimistic coverage from Cantor Fitzgerald, with an “overweight” rating and a $129 price target, amid surging data center demand and the rapid expansion of the artificial intelligence sector.

Nebius Group NV (NASDAQ:NBIS) is currently underway with the expansion of its data center portfolio in line with its targets of 3 GW of contracted capacity by the end of the year.

Of the total, a 1 GW scale would come from its data center in Independence, Missouri, while another 310 MW is being developed in Finland. The latter is targeted for full operations next year and is set to be Europe’s largest data center so far.

It is also planning to strengthen its foothold in Finland with the development of more facilities in the area.

Last month, the company clinched a $27 billion deal with Meta Platforms Inc. for the delivery of compute capacity for its AI needs.

Of the total amount, $12 billion is set to be delivered over the next five years, to be followed by another $15 billion for another five years.

The deal followed Nebius’ partnership with Nvidia, under which they would jointly develop and deploy next-generation hyperscale cloud for the AI market. Nvidia also invested $2 billion in Nebius.