To The Moon

I'm intrigued by the recent 70% surge in Nebius $NEBIUS(NBIS)$  stock, especially with the announcement of a $19.4B multi-year deal with Microsoft $Microsoft(MSFT)$  . The fact that Microsoft will purchase $17.4B worth of AI cloud services, with a $2B option through 2031, suggests a strong vote of confidence in Nebius's capabilities. This partnership, combined with the stock hitting $108.58, makes me wonder about its future trajectory. It's exciting to see such growth, but I'm cautious about whether this rapid rise could push it into "too expensive" territory, similar to what happened with CoreWeave $CoreWeave, Inc.(CRWV)$  .

On the first question about whether NBIS will turn "too expensive" like CoreWeave or still has upside left, I think it's a bit of a mixed bag. The deal with Microsoft provides a solid revenue foundation, which could support further growth if Nebius executes well. However, with a 70% jump in such a short time, the stock might be overbought, and I'd be wary of a correction if the hype outpaces fundamentals. That said, the long-term contract gives me some confidence that there could still be upside, especially if they expand their AI cloud offerings successfully.

Regarding the second question about following Nvidia to pick growth stocks, I see it as a strategy with potential but also risks. Nvidia's $NVIDIA Corp(NVDA)$  dominance in AI hardware has lifted many related companies, and Nebius's partnership with Microsoft could position it as another beneficiary. I've noticed that Nvidia-linked plays often ride the wave of AI innovation, which is still a hot sector. However, blindly following Nvidia's trail can lead to overvaluation.

I would keep an eye on how Nebius performs over the next few days to see if the surge stabilizes or if profit-taking kicks in. If the fundamentals hold, it might be worth considering, but I'd also balance it with other growth stocks to diversify my exposure.

Overall, I'm cautiously optimistic about Nebius but plan to approach it thoughtfully. The Microsoft deal is a big win, and the Nvidia link adds intrigue.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.

@TigerStars  @Tiger_comments