Nebius Group's AI Gold Rush: Or Just Another Overhyped Tech Bubble?
Okay, so Nebius Group N.V. (NASDAQ:NBIS) is suddenly the hottest name in AI, huh? Shares jumped 47% in September, analysts are drooling over these Microsoft and Meta deals… Give me a break. It's all a little too convenient, isn't it?
Billions in Hype: Does Anyone Actually Believe This?
The Hype Train is Leaving the Station $17.4 billion over five years from Microsoft and another $3 billion from Meta. Those are big numbers, I'll grant you that. Citizens Financial slapping a $175 price target on NBIS? Based on those deals alone? I'm not buying it. Analysts are so easily swayed by shiny objects. And what's this about alleviating concerns about previous ties to the Russian firm Yandex? Suddenly, a few billion dollars washes away all the potential ethical baggage? Please. Money talks, I guess. 65 hedge funds piling in during the third quarter... That's usually a sign to run the other way. Sheep following sheep, right off a cliff. Jericho Capital Asset Management increasing their position by 56%? Good for them, I guess. Hope they know what they're doing.Yandex's AI Play: Genius or Just Another Hype Train?
Capacity Constraints and Secondary Offerings CEO Arkady Volozh saying the Meta deal size was limited by available capacity? What does that even *mean*? Are they maxed out already? Or is it just a convenient excuse to temper expectations? Because if you ask me, it sounds like they bit off more than they can chew. It's like promising to bake a thousand cakes when you only have one oven. And then there's the secondary offering in September. Always a red flag, isn't it? Diluting the stock to cash in on the hype. Smart move for them, maybe not so much for the poor saps buying in. Speaking of poor saps, what about the average investor trying to make sense of all this? Nebius Group operates in the "capacity side" of the AI ecosystem, including GPU clusters and cloud platforms. Translation: they’re selling shovels in the gold rush. Are they even that special? Or are they just in the right place at the right time? I mean, how many companies are doing the same thing? Probably dozens. Makes you wonder, doesn’t it? Are we seeing the next Amazon, or the next Pets.com? I saw some dude on Reddit going on about how this is a "generational opportunity" or some other garbage. This is the kind of thing they said about crypto last year, and how'd that turn out? Oh, and Citizens Financial calling it a "Market Outperform" rating? That's analyst speak for "we hope this goes up so we look smart."AI Mania: Are We Headed for Another Dot-Com Disaster?
The AI Hype is Real, But the Substance...? Look, I'm not saying AI isn't a big deal. It is. But the level of irrational exuberance surrounding *every* company even tangentially related to AI is insane. It's like everyone's forgotten 2000, 2008, and... well, pretty much every other boom-and-bust cycle in history. Analysts are impressed with the Microsoft deal, according to Nebius Group (NBIS)’s Microsoft Deal Has Impressed Analysts - Yahoo Finance. Maybe I'm just getting old and cynical. Maybe Nebius Group really *is* the real deal. But color me skeptical. I've seen this movie before, and it usually ends with a lot of people losing a lot of money. This Smells Like 2000 All Over Again I ain't touching this with a ten-foot pole. Let the hedge funds and the analysts fight over the scraps. I'll be over here, waiting for the inevitable crash.