This article first appeared on GuruFocus.
Nebius (NASDAQ:NBIS) and Super Micro Computer (NASDAQ:SMCI) present contrasting routes to benefit from surging AI infrastructure demand.
Nebius, a rebranded cloud-infrastructure firm, has delivered rapid revenue growth by leasing and building data-centre capacity for AI workloads. It aims at ambitious expansion but runs at steep losses as it scales.
Super Micro, by contrast, sells AI-optimised servers and has shown nearer-term profitability, helped by liquid-cooled designs and supply partnerships.
Investors weigh growth potential against financial resilience. Nebius’s revenue surge is notable, yet its negative adjusted EBITDA raises questions about sustainability if capital costs rise. Super Micro’s lower valuation and positive cash flow offer more conservative exposure to the AI hardware cycle.
According to market watchers, the most recent movements are symptomatic of a shift away from the speculative names towards companies that exhibit more coherent prospects of expansion into the margins.
Nvidia (NASDAQ:NVDA) remains a key demand driver, while incumbents such as Hewlett Packard Enterprise (NYSE:HPE) and Dell Technologies (NYSE:DELL) increase competition.
Analysts recommend that you balance your exposure with risk and long-term perspective with the specific attribution concerning choosing between the fast growing cloud players and the long standing server makers.