Market Pullback: Time to Invest in Nvidia and Nebius Group?

Market Pullback: Investors are facing a major stocks correction. Major players like Nvidia and Nebius Group offer opportunities post pullback, with Nvidia's strong revenue growth potential amidst a valuation dip.

Date: 19-03-2025

AI Rating: 7

Earnings Per Share (EPS): The report does not provide specific EPS figures for either Nvidia or Nebius Group, thus this aspect is not analyzed.

Revenue Growth: Nvidia is projected to see a significant revenue growth of 65% year-over-year in the first quarter, which is strong positive news for the company. This growth is attributed to ongoing investments in AI infrastructure, which suggests a robust demand for Nvidia's products. Additionally, Nebius Group reported revenues of $117.5 million in 2024, with expectations to achieve an annualized run rate of between $750 million and $1 billion by Q4, indicating a rapid growth trajectory.

Net Income: The report does not specify net income figures for either company, hence this aspect is not analyzed.

Profit Margins: The report does not provide information regarding profit margins for Nvidia or Nebius Group, and therefore, this will not be included in the analysis.

Free Cash Flow (FCF): No details regarding free cash flow are mentioned in the report.

Return on Equity (ROE): There is no mention of return on equity for either company.

Both Nvidia's and Nebius's current valuations can be deemed attractive in light of the recent pullbacks. Nvidia's valuation, with a P/E ratio around 25, is justified by its strong growth prospects. The mention of Nvidia's participation in a private funding round for Nebius highlights the strong relationship and potential synergistic growth between the two companies. Additionally, both companies are positioned to take advantage of the market correction, with new AI infrastructure investments poised to drive future returns.

Stocks: NVDA NBIS