Billionaire Rob Citrone’s 10 Small-Cap Stock Picks with Huge Upside Potential

3. Nebius Group (NASDAQ:NBIS)

Discovery Capital Management’s Stake: $53.96 million

Number of Hedge Fund Holders: 66

Market Capitalization as of May 8: $6.63 billion

Average Upside Potential as of May 8: 55.07%

Nebius Group (NASDAQ:NBIS) builds infrastructure for the global AI industry. It provides AI-centric cloud platforms, large-scale GPU clusters, and developer tools. It also operates Toloka AI for data services, TripleTen for tech education, and Avride for autonomous driving, which creates a full ecosystem to support AI development and applications.

In April, the company partnered with DDN. This is one of the world’s leading AI and data intelligence companies. By integrating DDN Infinia and EXAScaler into its AI cloud, Nebius is expanding the performance and scalability of its platform for AI workloads. With DDN and Nebius, enterprises can deploy AI workloads faster and more efficiently, at a lower cost.

Earlier in February, DA Davidson initiated coverage of Nebius Group (NASDAQ:NBIS) with a Buy rating and a $50 price target. In Q4 2024, the company’s overall revenue increased by 466% year-over-year to $37.9 million. This was fueled by advancements in both infrastructure and software. Nebius’ core AI infrastructure business alone grew by 602% year-over-year, which contributed to the company’s overall revenue increase.