Summary
Highlights
Nebius Group focuses on AI infrastructure, providing GPU clusters across Europe, the US, and the Middle East to handle massive AI processing loads for hyperscalers like Cloudflare and Shopify, as well as Nvidia and Amazon. They play a crucial role in the AI ecosystem by supplying the underlying infrastructure, rather than building AI applications directly. Nebius has strategic relationships with giants like Nvidia and Amazon, ensuring priority access to advanced GPUs and securing multi-year infrastructure agreements worth billions. This provides them with competitive advantages through network effects and scalability. Nebius is already generating significant revenue, with its stock up 38% in the last month, and is projected to reach $200 per share by 2026. This stock is recommended for up to 5% of a portfolio.
Rigetti is presented as a promising quantum computing stock, albeit a speculative one. Quantum computing is projected to become a $72 billion revenue opportunity by 2035, growing from $4 billion currently. Rigetti takes a 'picks and shovels' approach by building superconducting quantum chips and hardware, and has developed a 'quantum cloud services' platform for accessibility. They aim to be the Nvidia of quantum computing, with an integrated system that controls its supply chain and manufactures its own chips in their dedicated quantum foundry, FAB-1. While the company's EPS is not strong, the presenter suggests a small, 1% portfolio allocation due to potential market momentum and long-term growth in the quantum computing sector, despite the inherent hype.
I-REN operates data centers powered by renewable energy, catering to high-powered computing workloads like Bitcoin mining and increasingly, AI infrastructure. The company is pivoting towards AI cloud services and GPU infrastructure, while maintaining its Bitcoin operations. I-REN owns its data centers, power infrastructure, and computing hardware, providing vertical control. They have invested heavily in GPUs, purchasing 2,400 Nvidia Blackwell B200 and B300 GPUs, aiming for over $500 million in annualized run-rate revenue from GPU cloud services by early 2026. Their access to low-cost, renewable power is a key strength. I-REN has also secured preferred partner status with Nvidia, addressing a major GPU supply bottleneck. The stock has seen an 83% increase in the last month. The presenter recommends a 1% portfolio allocation due to execution risks and potential overextension during rapid scaling, as well as valuation risks if growth falters. Competition from companies like Nebius also exists.