Nebius shares have more than tripled (up 244%) this year and have risen 567% from this time in 2024.
"The sure winners in a booming industry like artificial intelligence aren't the companies that are developing AI applications but those that provide those leaders with essential tools, services and infrastructure," TheStreet Pro's James “Rev Shark” DePorre wrote.
"This theory is often referred to as a 'picks and shovels' approach to the market and originates from the California Gold Rush, when merchants selling picks, shovels, and supplies to gold miners were the most consistently profitable," he added.
While Microsoft may not be a big winner in AI, DePorre, CEO of Hammerhead Strategies, said Nebius was "a pretty sure bet to do well by providing Microsoft with the essential tools it needs."
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