Latest news with #AIInfrastructure
Yahoo
2 days ago
- Business
- Yahoo
NVDA: Oppenheimer Sees Trillion-Dollar AI Opportunity for Nvidia
June 19 - Nvidia (NASDAQ:NVDA) could benefit from rising global interest in sovereign artificial intelligence systems, according to a recent client note from Oppenheimer, following CEO Jensen Huang's high-profile tour across Europe. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The firm said Nvidia is working closely with governments to help them build national AI infrastructure. Oppenheimer estimates the total addressable market for sovereign AI could reach $1.5 trillion, with Europe accounting for about $120 billion of that potential. Last week, Nvidia entered a new partnership with Deutsche Telekom to support Germany's push into sovereign AI. The deal aims to accelerate industrial use cases including robotics, simulation, and digital twins. Huang also announced a collaboration with the European Broadcasting Union during a keynote at the VivaTech conference in Paris. He later visited London for further engagements at London Tech Week, as Nvidia expands its sovereign AI strategy across key European markets. Shares of Nvidia have climbed around one-third since late April, as investors weigh the potential of sovereign AI alongside other growth drivers in its enterprise and data center businesses. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
NBIS vs. AMZN: Which AI-Infra Stock Seems a Better Pick at the Moment?
Nebius Group N.V. NBIS is an upcoming player in the AI-infrastructure market, while Amazon AMZN is an established tech behemoth. NBIS is a GPU-focused cloud platform, while Amazon dominates the AI cloud space through Amazon Web Services or AWS, the world's leading cloud provider, integrating AI capabilities at scale. Per an IDC report, spending on AI infrastructure is expected to top $200 billion by 2028. This uptrend in spending benefits both Amazon and Nebius, but not equally. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out? Let's break down how each company is performing and which one looks like the better investment right now. Amsterdam-based Nebius is positioning itself as a specialized AI infrastructure company. NBIS also builds full-stack infrastructure for AI, like large-scale GPU clusters, cloud platforms, and tools and services for developers. Collaboration with Saturn Cloud and deeper NVIDIA integration boosts bodes well. NBIS is doubling down on AI infrastructure with an ambitious $2 billion capital expenditure plan for 2025, up from its earlier guidance of $1.5 billion. NBIS stated that the increase was primarily due to some planned fourth-quarter spending shifting into the early first quarter. Nebius is focusing on building a global footprint, with capacity in the United States, Europe and the Middle East amid accelerating demand for its AI-infrastructure services. It added three new regions, including a strategic data center in Israel, in the last reported quarter. In June 2025, NBIS announced private placement of $1 billion in convertible notes to capitalize on the AI-infrastructure boom and drive-up revenue opportunities in 2026. It recently announced the general availability of NVIDIA GB200 Grace Blackwell Superchip capacity for its customers in Europe. NBIS plans to build a data-center infrastructure pipeline that can offer scalability to more than 1 gigawatt ('GW') of capacity. With 1 GW of power, NBIS expects significantly higher revenues beyond its current guidance. To gain a larger share of the AI cloud compute market, NBIS is focusing on technical enhancements that increase reliability and reduce downtime to boost customer retention. In the first quarter, Nebius significantly upgraded its AI cloud infrastructure through improvements to its Slurm-based cluster and its object storage capabilities. The upgraded storage system ensures that big data sets can be easily accessed and saved quickly during model training, directly lowering time-to-result for end users. NBIS successfully graduated multiple platform services like MLflow and JupyterLab Notebook from beta to general availability. Nebius expanded integrations with external AI platforms like Metaflow, D Stack and SkyPilot, enabling customers to migrate tools with nominal friction. Nebius remains confident in achieving its full-year ARR guidance of $750 million to $1 billion. For 2025, the company also reaffirmed its overall revenue guidance of $500 million to $700 million. Nonetheless, the intense competition from behemoths remains a concern, along with profitability Management reaffirmed that adjusted EBITDA will be negative for the full year 2025. Though it added that adjusted EBITDA will turn positive at 'some point in the second half of 2025.' While NBIS is an early-stage player, Amazon is one of the dominant names in the AI cloud infrastructure space with its AWS platform. AWS revenues surged 17% year-over-year in the first quarter of 2025, with an annualized revenue run rate pegged at $117 billion. AWS backlog reached $189 billion with a 4.1-year weighted average life, offering forward revenue visibility. In the last reported quarter, AWS signed new agreements with major companies, including Ericsson, Adobe, Uber Technologies, Nasdaq, Fujitsu and many others. Amazon highlighted that more than 85% of global IT spending is still on-premises, suggesting immense growth potential for AWS. More significantly, Amazon's AI business segment now operates at a multi-billion-dollar annual revenue run rate with triple-digit percentage growth year over year. Amazon's strategy focuses on custom silicon development, particularly its Trainium 2 chips, which offer 30-40% better price performance compared to GPU-based instances. The company has also expanded its AI model offerings through Amazon Bedrock and introduced services like Amazon Nova foundation models. AMZN has added the latest foundation models in Amazon Bedrock, including Anthropic's Claude 3.7 Sonnet, Meta's Llama 4 family of models, DeepSeek's R1 and Mistral AI's Pixtral Large. AMZN is ramping up investment to boost its AI market share. It recently announced it plans to invest up to $20 billion in Pennsylvania to expand its data center infrastructure for AI and cloud computing. Before that, it allocated $10 billion in investments to expand cloud computing infrastructure in North Carolina. However, capacity constraints pose a challenge. Amazon has indicated that AI demand currently outstrips available capacity, suggesting the company could drive higher revenues with additional infrastructure. The intense competition from Microsoft's Azure and Google Cloud is concerning. Heavy capex spend could strain margins if AI returns do not materialize. AMZN shares have gained 2.9% while NBIS' stock has appreciated 25.5%. Image Source: Zacks Investment Research Valuation-wise, both Amazon and Nebius are overvalued, as suggested by the Value Score of D and the Value Score of F, respectively. Image Source: Zacks Investment Research In terms of Price/Book, NBIS shares are trading at 3.52X, lower than AMZN's 7.36X. Analysts have significantly revised their earnings estimates downward for NBIS' bottom line for the current year. Image Source: Zacks Investment Research For AMZN, there is marginal upward revision. Image Source: Zacks Investment Research NBIS and AMZN currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. NBIS is carving out a niche for itself in the AI infrastructure space, while AMZN is a force to be reckoned with. If investors are seeking an AI infrastructure stock with long-term growth potential, Amazon is a better pick. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
4 days ago
- Business
- Globe and Mail
NBIS vs. AMZN: Which AI-Infra Stock Seems a Better Pick at the Moment?
Nebius Group N.V. NBIS is an upcoming player in the AI-infrastructure market, while Amazon AMZN is an established tech behemoth. NBIS is a GPU-focused cloud platform, while Amazon dominates the AI cloud space through Amazon Web Services or AWS, the world's leading cloud provider, integrating AI capabilities at scale. Per an IDC report, spending on AI infrastructure is expected to top $200 billion by 2028. This uptrend in spending benefits both Amazon and Nebius, but not equally. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out? Let's break down how each company is performing and which one looks like the better investment right now. Nebius: A Fast-Growing Pure-Play AI Infra Provider Amsterdam-based Nebius is positioning itself as a specialized AI infrastructure company. NBIS also builds full-stack infrastructure for AI, like large-scale GPU clusters, cloud platforms, and tools and services for developers. Collaboration with Saturn Cloud and deeper NVIDIA integration boosts bodes well. NBIS is doubling down on AI infrastructure with an ambitious $2 billion capital expenditure plan for 2025, up from its earlier guidance of $1.5 billion. NBIS stated that the increase was primarily due to some planned fourth-quarter spending shifting into the early first quarter. Nebius is focusing on building a global footprint, with capacity in the United States, Europe and the Middle East amid accelerating demand for its AI-infrastructure services. It added three new regions, including a strategic data center in Israel, in the last reported quarter. In June 2025, NBIS announced private placement of $1 billion in convertible notes to capitalize on the AI-infrastructure boom and drive-up revenue opportunities in 2026. It recently announced the general availability of NVIDIA GB200 Grace Blackwell Superchip capacity for its customers in Europe. NBIS plans to build a data-center infrastructure pipeline that can offer scalability to more than 1 gigawatt ('GW') of capacity. With 1 GW of power, NBIS expects significantly higher revenues beyond its current guidance. To gain a larger share of the AI cloud compute market, NBIS is focusing on technical enhancements that increase reliability and reduce downtime to boost customer retention. In the first quarter, Nebius significantly upgraded its AI cloud infrastructure through improvements to its Slurm-based cluster and its object storage capabilities. The upgraded storage system ensures that big data sets can be easily accessed and saved quickly during model training, directly lowering time-to-result for end users. NBIS successfully graduated multiple platform services like MLflow and JupyterLab Notebook from beta to general availability. Nebius expanded integrations with external AI platforms like Metaflow, D Stack and SkyPilot, enabling customers to migrate tools with nominal friction. Nebius remains confident in achieving its full-year ARR guidance of $750 million to $1 billion. For 2025, the company also reaffirmed its overall revenue guidance of $500 million to $700 million. Nonetheless, the intense competition from behemoths remains a concern, along with profitability Management reaffirmed that adjusted EBITDA will be negative for the full year 2025. Though it added that adjusted EBITDA will turn positive at 'some point in the second half of 2025.' Amazon: Dominant Force With Its AWS Platform While NBIS is an early-stage player, Amazon is one of the dominant names in the AI cloud infrastructure space with its AWS platform. AWS revenues surged 17% year-over-year in the first quarter of 2025, with an annualized revenue run rate pegged at $117 billion. AWS backlog reached $189 billion with a 4.1-year weighted average life, offering forward revenue visibility. In the last reported quarter, AWS signed new agreements with major companies, including Ericsson, Adobe, Uber Technologies, Nasdaq, Fujitsu and many others. Amazon highlighted that more than 85% of global IT spending is still on-premises, suggesting immense growth potential for AWS. More significantly, Amazon's AI business segment now operates at a multi-billion-dollar annual revenue run rate with triple-digit percentage growth year over year. Amazon's strategy focuses on custom silicon development, particularly its Trainium 2 chips, which offer 30-40% better price performance compared to GPU-based instances. The company has also expanded its AI model offerings through Amazon Bedrock and introduced services like Amazon Nova foundation models. AMZN has added the latest foundation models in Amazon Bedrock, including Anthropic's Claude 3.7 Sonnet, Meta's Llama 4 family of models, DeepSeek's R1 and Mistral AI's Pixtral Large. AMZN is ramping up investment to boost its AI market share. It recently announced it plans to invest up to $20 billion in Pennsylvania to expand its data center infrastructure for AI and cloud computing. Before that, it allocated $10 billion in investments to expand cloud computing infrastructure in North Carolina. However, capacity constraints pose a challenge. Amazon has indicated that AI demand currently outstrips available capacity, suggesting the company could drive higher revenues with additional infrastructure. The intense competition from Microsoft's Azure and Google Cloud is concerning. Heavy capex spend could strain margins if AI returns do not materialize. NBIS Shares More Resilient Than AMZN AMZN shares have gained 2.9% while NBIS' stock has appreciated 25.5%. Valuation for AMZN & NBIS Valuation-wise, both Amazon and Nebius are overvalued, as suggested by the Value Score of D and the Value Score of F, respectively. In terms of Price/Book, NBIS shares are trading at 3.52X, lower than AMZN's 7.36X. How Do Zacks Estimates Compare for NBIS & AMZN? Analysts have significantly revised their earnings estimates downward for NBIS' bottom line for the current year. Image Source: Zacks Investment Research For AMZN, there is marginal upward revision. NBIS or AMZN: Which is a Better Pick? NBIS and AMZN currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. NBIS is carving out a niche for itself in the AI infrastructure space, while AMZN is a force to be reckoned with. If investors are seeking an AI infrastructure stock with long-term growth potential, Amazon is a better pick. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nebius Group N.V. (NBIS): Free Stock Analysis Report
Yahoo
14-06-2025
- Business
- Yahoo
Super Micro Computer (SMCI) Debuts the Industry's Broadest AI Solution Stack for NVIDIA Blackwell
Super Micro Computer, Inc. (NASDAQ:) is one of the . On June 11, the company announced an expansion of the industry's broadest portfolio of solutions designed for NVIDIA Blackwell Architecture to the European market. The 30+ solutions offer the most comprehensive and efficient solution stack for NVIDIA HGX B200, GB200 NVL72, and RTX PRO 6000 Blackwell Server Edition deployments. These solutions will accelerate the deployment of European enterprise AI factories across any environment. Supermicro's solution stack will not just enable the deployment of NVIDIA Enterprise AI Factory validated design, but also support the upcoming introduction of NVIDIA Blackwell Ultra solutions, anticipated later this year. This includes the NVIDIA GB300 NVL72 and HGX B300. A scientist at a computer station, surrounded by a neural network of artificial intelligence code. A major highlight of Supermicro's latest offerings is its DLC-2 liquid cooling technology, which can remove up to 250kW of heat per rack. Through this innovation, customers will be able to deploy much more compute power within existing facility constraints, all while maintaining optimal thermal performance for sustained AI workloads. 'With our first-to-market advantage and broad portfolio of NVIDIA Blackwell solutions, Supermicro is uniquely positioned to meet the accelerating demand for enterprise AI infrastructure across Europe. Our collaboration with NVIDIA, combined with our global manufacturing capabilities and advanced liquid cooling technologies, enables European organizations to deploy AI factories with significantly improved efficiency and reduced implementation timelines. We're committed to providing the complete solution stack enterprises need to successfully scale their AI initiatives.' -Charles Liang, president and CEO of Supermicro. Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing. While we acknowledge the potential of SMCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-06-2025
- Business
- Yahoo
Cisco Expands AI Portfolio for Data Centers: Why the Stock is a Hold
Cisco Systems CSCO is expanding its AI portfolio for data centers with new solutions like the Unified Nexus Dashboard, Cisco Intelligent Packet Flow, configurable AI PODs, and 400G bidirectional (BiDi) optics. Cisco is leveraging its collaboration with NVIDIA NVDA to strengthen its footprint in the AI infrastructure domain. Cisco secured AI infrastructure orders worth more than $1 billion to date in fiscal 2025, a quarter ahead of schedule. These latest solutions are expected to drive further Unified Nexus Dashboard consolidates services across LAN, SAN, IPFM, and AI/ML fabrics into a single pane of glass. These capabilities will be available in the next Nexus Dashboard release in July 2025. Available from Tuesday (June 10), Cisco Intelligent Packet Flow uses real-time telemetry and congestion awareness across AI fabrics that make it easier to detect issues proactively. The new 400G BiDi optics are set to be available in the second half of the calendar year aggressive AI push and growing security dominance, as reflected by the third quarter of fiscal 2025 results, are noteworthy. Security revenues jumped 54% year over year, while Networking increased 8%. Total product orders grew 20% year over year or 9% on an organic basis. While Networking product orders grew double-digits, Campus switching orders grew in the high single digits in the reported quarter. WiFi 7 orders increased triple-digit on a sequential basis. The momentum is expected to continue in the near term thanks to an expanding portfolio and collaboration with terms of share price movement, Cisco shares have appreciated 8.4% year to date (YTD), outperforming the Zacks Computer & Technology sector's return of 14.3%. Cisco shares have outperformed Arista Networks ANET and Extreme Networks EXTR YTD, shares of which have dropped 14.8% and 0.3%, respectively. Image Source: Zacks Investment Research So, what should investors do with the Cisco stock? Let's find out. Cisco's expanded partnership with NVIDIA, under which the companies plan to offer solutions that help build AI-ready data center networks, is a game changer. Cisco Secure AI Factory with NVIDIA is founded on the NVIDIA Spectrum-X Ethernet networking platform. Security is at the core of the solution and helps enterprises simplify, deploy, manage and secure AI infrastructure at any scale. NVIDIA Spectrum-X Ethernet networking based on Cisco Silicon One supports NX-OS, Nexus Hyperfabric AI and SONiC deployments. Cisco-NVIDIA showcased the first technical integration of Cisco G200-based switches and NVIDIA NICs at Cisco Live. Meanwhile, the NVIDIA RTX PRO 6000 Blackwell Server Edition GPU is now available to order with Cisco UCS C845A M8 servers. Cisco is strengthening its relationship with NVIDIA by including Cisco AI Defense and Cisco Hypershield in the NVIDIA Enterprise AI Factory validated design. Cisco's strategy of infusing AI across Security and Collaboration platforms and developing Agentic capabilities across the portfolio is a key catalyst. It is leveraging Agentic AI to improve customer experience. The launch of Renewals Agent, an Agentic AI-driven solution co-developed with Mistral, and a new Assistant to help customers digitize and de-risk Network Change Management have been noteworthy developments in this security business is benefiting from strong demand for both Cisco Secure Access, Hypershield and XDR. On a combined basis, these solutions added more than 370 customers in the reported quarter. The acquisition of Snap Attack enhances Splunk's capability. For fiscal 2025, CSCO expects revenues to be $56.5-$56.7 billion, up from the previous guidance of $56-$56.5 billion. Non-GAAP earnings are now expected between $3.77 per share and $3.79 per share, better than the previous guidance of $3.68-$3.74 per Zacks Consensus Estimate for CSCO's fiscal 2025 revenues is pegged at $56.59 billion, indicating growth of 5.18% on a year-over-year basis. The consensus mark for CSCO's 2025 earnings is currently pegged at $3.79 per share, up by six cents over the past 30 days, indicating year-over-year growth of 1.61%. Cisco Systems, Inc. price-consensus-chart | Cisco Systems, Inc. Quote Cisco shares are trading at a premium, as suggested by the Value Score of D. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 4.32X, higher than the Zacks Computer Networks industry's shares are trading at a premium compared to Extreme Networks and NETGEAR. In terms of the forward 12-month P/S, Extreme Networks shares are trading at 1.83X, while NETGEAR is trading at 1.22X. Image Source: Zacks Investment Research An expanding portfolio makes Cisco well-positioned for sustained growth in an evolving tech landscape. AI push is noteworthy, along with a growing footprint in the security space. These trends bode well for CSCO's long-term prospects. So, investors who currently hold the stock should continue to do stock is currently trading above the 50-day and the 200-day moving averages, indicating a bullish trend. Image Source: Zacks Investment Research However, a challenging macroeconomic condition, as well as stiff competition in the networking and security domain, is expected to hurt Cisco's prospects in the near term. A stretched valuation is a currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a better point to start accumulating the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
