Better AI Infrastructure Stock: Nebius Group vs. Iren Limited

• Companies look acceptable to walk trillions connected AI infrastructure this decade.

• Nebius Group is increasing fast, but its losses are inactive mounting.

• Iren Limited operates successful the achromatic due to the fact that astir of its gross comes from Bitcoin mining.

• 10 stocks we similar amended than Nebius Group ›

There are a fewer absorbing ways to put successful the maturation of artificial quality (AI), but 1 of my favorites close present is AI infrastructure. Nvidia CEO Jensen Huang has estimated that companies volition walk $3 trillion to $4 trillion connected AI infrastructure and information centers by 2030 -- and Huang has been close a batch much than he's been wrong.

Chipmakers are plowing arsenic overmuch arsenic they tin into making much almighty chips, but there's besides a increasing request for information halfway capacity. Developers and companies are much apt to usage unreality environments for AI grooming and inference due to the fact that of the immense disbursal successful buying, bundling, and powering chips.

I invested successful Nebius Group (NASDAQ: NBIS), a rising Dutch institution that offers unreality infrastructure for AI environments. But the much I larn astir Iren Limited (NASDAQ: IREN), the much I admit that concern model.

Let's look astatine these 2 companies.

Nebius Group is based successful the Netherlands, but it utilized to person ties to Russia. The institution was formerly called Yandex N.V., and its superior concern was a Russian net institution of the aforesaid name. Yandex traded connected the Nasdaq Stock Market, but Nasdaq suspended trading erstwhile Russian companies were deed with sanctions pursuing Russia's penetration of Ukraine. The institution sold disconnected its Russian assets, rebranded arsenic Nebius, and yet started trading again connected the Nasdaq.

Now, Nebius is an AI infrastructure institution that offers large-scale clusters of Nvidia's graphics processing units (GPUs) passim Europe, the Middle East, and the U.S. The institution offers entree to up to 32 Nvidia H100 and H200 GPUs connected an on-demand basis, arsenic good arsenic contracts for full-stack AI infrastructure that features Nvidia Blackwell GPUs.

The institution reported fast-growing gross of $146.1 cardinal successful the 3rd quarter, up 355% from a twelvemonth ago, and promoted its caller $3 cardinal woody with Meta Platforms to supply AI infrastructure for the adjacent 5 years. That comes connected the heels of its archetypal large win, a woody with Microsoft worth up to $19.4 billion, which was announced successful September.

And portion the gross maturation is expensive, Nebius inactive is not turning a nett due to the fact that it's horribly costly to physique and tally information centers. The institution reported a nett nonaccomplishment of $100.4 cardinal for the 4th and has incurred nett losses of $273.7 cardinal for the twelvemonth truthful far.