Predictive Analysis Indicates Nasdaq's Surge in 2025: One Promising Artificial Intelligence (AI) Investment to Secure Prior to Its Ascent
Since the launch of ChatGPT on Nov. 30, 2022, the S&P 500 and Nasdaq Composite have delivered impressive returns of 48% and 69%, respectively. The optimism surrounding artificial intelligence (AI) helped shake off the 2022 market slump and set the stage for a robust 2023-2025 for technology stocks.
Let's delve into why this year could be another stellar performance for the Nasdaq, and why AI infrastructure stock Nebius Group (NBIS) is a candidate for solid gains.
A little trip down memory lane with the Nasdaq
The Nasdaq, since its inception in 1971, has registered negative annual returns 14 times. The index has experienced declines in consecutive years only twice, during 1973-1974 and 2000-2002. This historical resilience underscores the Nasdaq's ability to bounce back from tough times.
The index suffered a 33% loss in 2022, but investor sentiment is relatively strong. Macroeconomic indicators such as inflation have eased, and the Federal Reserve has pared back interest rates. The emergence of AI as the next megatrend has further fueled market optimism.
In 2023 and 2024, the Nasdaq racked up gains of 43% and 29%, respectively. Given the favorable economic climate and the waning influence of the 2022 downturn, a strong performance by the Nasdaq in 2023 is likely.
Welcome to the Nebius world, if you haven't heard of it before
Established as a divestment from Russian internet company Yandex, Nebius Group (NBIS) holds a limited trading history. Following the divestment, Nebius has gained independent status and been listed on the Nasdaq. Given its intricate history and limited trading history, you might wonder why the bullish sentiment surrounding Nebius.
Here's the answer: Nvidia.
2025: The Breakout Year for Nebius
In December 2022, Nebius closed a private placement raising $700 million through the sale of 33.3 million shares at $21 each. One of the main investors in this transaction was Nvidia.
Nebius is focused on AI infrastructure for data centers. Nebius plays a significant role in scaling Nvidia's upcoming Blackwell GPU architecture across Europe and the United States. Nebius's projected 2025 annual recurring revenue (ARR) has been revised to a range between $750 million and $1 billion – a significant increase from previous estimates that hovered around $500 million.
Nvidia's investment in Nebius and its role in the Blackwell expansion serve as a crucial endorsement of Nebius's capabilities. Given the importance of the Blackwell rollout to Nvidia, analysts will undoubtedly keep a keen eye on partnering companies and suppliers within the Nvidia ecosystem.
Though the stakes have risen, this opportunity presents a compelling case for investing in Nebius. The early stages of Blackwell's development present a tremendous opportunity for Nebius to ascend as a significant player in the AI infrastructure market, benefiting from the exponential growth of the market.
Based on the strong investor sentiment and the favorable economic climate, there might be opportunities for individuals interested in finance and investing to consider reinvesting in the Nasdaq for potential gains in 2023.
Given Nvidia's investment in Nebius Group and its role in scaling Nebius's AI infrastructure for data centers, tech-focused investors looking to invest in finance might find Nebius as a promising candidate for solid gains in 2025.
%20Investment%20to%20Secure%20Prior%20to%20Its%20Ascent){kind=link}