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Technology Stocks : Artificial Intelligence, Robotics, Chat bots - ChatGPT

NVDA 200.03

+0.8%

9:57 AM EST

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From: Frank Sully	9/9/2025 7:11:07 PM
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Nebius is now trading at valuation multiples way above the sector norms. There's both the hype and risk embedded in its growth story. Its forward price-to-sales ratio sits at 27.54, compared to a sector median of just 3.25. It’s a staggering 747% premium. Similarly, the forward EV to sales multiple is 26.68, versus the sector’s 3.21. Another big premium at 732%. So the numbers are telling us investors are already pricing in years of outsized growth from this deal. The future growth is well beyond what traditional IT peers command. The justification lies in that $17.4 billion multi-year Microsoft contract. Investors are already putting their faith in Nebius for a locked-in revenue base. For investors eyeing entry around the $90 range after today’s surge, the upside case is that Nebius can go on to execute on data center build-outs like we discussed (Vineland’s 300MW campus, Finland’s 75MW expansion) and leverage contracted cash flows to scale just as fast as CoreWeave in its own way. The risk, however, is a big one. At these stretched valuation multiples, any delivery delays, any margin compression, or pullback in AI demand could mean a re-rating. For those who have Nebius since before this surge, I suggest taking profits; this is the logic we're seeing play out with lots of investors taking profits, which took the +50% pre-market rally down to +36% at current levels. For full analysis see link. seekingalpha.com

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