- 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, thanks to a bullish statement from Jim Cramer and the ongoing stock market rally following the new US-Iran ceasefire. NBIS jumped by 8.30% in the premarket session, bringing its market capitalization to over $30 billion.
Jim Cramer Backs Nebius as Future Data Center Leader
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 world’s largest company, a sign that Jensen Huang believes it will continue to thrive. It also received a giant $27 billion order from Meta Platforms, boosting its backlog to over $45 billion.
Most notably, the company reported strong financial results, indicating that its business model was performing well despite elevated costs. Its revenue jumped to $529 million last year, up 479% YoY, driven by a large order from Microsoft.
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This revenue growth is just the beginning, with analysts expecting its business to reach $3.3 billion this year, up 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 on capital expenditures, driven by GPU and other hardware purchases. Its capital expenditure this year will be in the billions, with CoreWeave, another competitor, expected to spend between $30 billion and $35 billion.
The other major risk the company faces is rising competition, with companies like Riot Platforms, MARA Holdings, Bitfarms, and TeraWulf entering the industry. Basically, most companies in the Bitcoin mining industry are moving into the AI data center business, which may put future margins under pressure.
Nebius Stock Price Technical Analysis
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 reaching the psychological level of $150, about 18% above the current level.
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