Tech Explained: Nebius Expands AI Cloud Ambitions With Tavily Deal And Tech Giants in Simple Terms

• Nebius Group (NasdaqGS:NBIS) has agreed to acquire Tavily, a provider of agentic search technology for AI applications.
• The company is also securing multi billion dollar AI cloud agreements with Microsoft and Meta as part of its infrastructure build out.
• These developments are aimed at strengthening Nebius’s AI cloud platform for enterprise customers.

Nebius Group, listed as NasdaqGS:NBIS, focuses on AI centric cloud infrastructure and tooling for enterprise workloads. The Tavily acquisition brings in agent focused search capabilities that are designed to help complex AI agents access and use information more effectively across large datasets.

Set alongside multi billion dollar, long term AI cloud deals with Microsoft and Meta, this move signals a push to become a key partner for large scale AI deployments. For you as an investor, the combination of new technology from Tavily and deep relationships with two global platforms may influence how Nebius competes for enterprise AI budgets over time.

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Why Nebius Group could be great value

Quick Assessment

• Price vs Analyst Target: At US$92.88, the share price sits about 36% below the US$144.60 analyst target, so the market is well under that reference point.
• Simply Wall St Valuation: Simply Wall St’s DCF view is currently unknown, so there is no clear under or overvaluation signal here.
• Recent Momentum: The 30 day return is about 5.2% lower, which shows recent pressure on the share price despite the AI news flow.

Check out Simply Wall St’s
in depth valuation analysis for Nebius Group.

Key Considerations

• Tavily plus the large Microsoft and Meta agreements strengthen Nebius’s AI cloud story, which may matter if you are focused on long term commercial adoption.
• Keep an eye on the very high P/E of about 205x versus the Software industry average near 28x, as well as how efficiently new AI contracts feed into revenue and earnings.
• Simply Wall St flags a major risk around high levels of non cash earnings, so you may want to look closely at cash generation and earnings quality alongside this growth push.

Dig Deeper

For the full picture including more risks and rewards, check out the
complete Nebius Group analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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