Nebius Group's AI infrastructure business is booming. This Amsterdam-based company saw its stock price rise by 202% this year, with Q3 revenue skyrocketing by 355% to $146 million. Recently, it also signed a $3 billion 5-year large orders with Meta and a $19.4 billion protocol with Microsoft.

But here is an interesting point: the stock price has dropped more than 30% from the high in October, the reason being that although revenue exploded (YoY growth of 437%), it did not meet Wall Street expectations, along with the company's plan to issue 25 million new shares raising dilution concerns.

The key is that the long-term logic remains. Nebius holds the dual engines of Nvidia GPU data centers and AI cloud software, and the computing power has already sold out. According to the company's goals, by the end of 2026, it aims to achieve an annual revenue of 7 to 9 billion dollars, which means growing from 120 million in 2024 to 8 billion by 2027 – a 6700% increase.

The global AI market is expected to reach $3.5 trillion by 2033, with a compound annual growth rate of 31.5%. If early infrastructure providers can truly succeed, it could be a wealth machine for patient holders.

Of course, the cost is huge losses and equity dilution. But if the growth story holds, these might just be the costs of the transition period. What do you think?