- Nebius stock price has jumped and is nearing its all-time high.
- Jim Cramer believes that it will be a big name in the data center industry.
- Technical analysis suggests that the stock will continue soaring, potentially to $150.
Nebius stock price is rocketing today, April 8, helped by a bullish statement by Jim Cramer and the ongoing stock market rally after the new US-Iran ceasefire. NBIS jumped by 8.30% in the premarket session, bringing its market capitalization to over $30 billion.
Jim Cramer Dubai Nebius Group the Data Center Company of the Future
Nebius Group has become one of the most successful neocloud companies this year, and Jim Cramer believes that it is the data center company of tomorrow.
The company recently raised $2 billion from NVIDIA, the biggest company in the world, a sign that Jensen Huang believes it will keep thriving. It also received a giant $27 billion order from Meta Platforms, boosting its backlog to over $45 billion.
Most notably, the company published strong financial results, which showed that its business model was doing well despite the elevated costs. Its revenue jumped to $529 million last year, up by 479% YoY, helped by a large order it received from Microsoft.
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This revenue growth is just the beginning, with analysts expecting that its business will make $3.3 billion this year, up by 523% YoY. It will then jump by 184% in 2027, and possibly cross the $20 billion mark a year later.
Nebius’s growth is being driven by the soaring demand for data from companies in the artificial intelligence industry. This includes companies like Microsoft and Meta Platforms, which are spending billions of dollars annually in the industry.
The main challenge, however, is that deploying these GPUs is not cheap and the company will need additional capital over time. This explains why the company’s short interest has jumped to 20%, a sign that many investors are betting against it.
In its case, the company spent $2.1 billion in capital expenditure, which was driven by the purchases of GPUs and other hardware. Its capital expenditure this year will be in the billions, with CoreWeave, another competitor, expecting to spend between $30 billion and $35 billion this year.
The other major risk the company faces is that competition is rising, with companies like Riot Platforms, MARA Holdings, Bitfarms, and TeraWulf joining the industry. Basically, most companies in the Bitcoin mining industry are moving to the AI data center business, which may lead to margin pressure in the future.
Nebius Stock Price Technical Analysis
NBIS stock chart | Source: TradingView
Technical analysis suggests that the NBIS stock price may be on the verge of a strong bullish breakout in the coming weeks. The daily timeframe chart shows that it formed a double-bottom pattern at $74.23 and a neckline at $110.
The stock has moved above all moving averages and the Supertrend indicator. It has also jumped above the Ultimate Resistance level of the Murrey Math Lines tool.
Therefore, the stock will likely continue rising in the coming weeks, potentially to the psychological level at $150, which is about 18% above the current level.
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