AI is no longer a speculative trend—it’s a capital-intensive, high-stakes race where speed and efficiency define the winners. Nebius is one of the few companies quietly building the backbone that powers massive AI models, scaling data centers, and delivering contracted capacity to industry giants like Microsoft. Its growth isn’t hype—it’s execution, with revenue, margins, and capacity targets steadily expanding. For investors with limited time, the real question isn’t “Will AI boom?” but “Is this infrastructure strong enough to keep delivering results?” This newsletter dives into why Nebius could quietly redefine AI investing in 2026.

The final section breaks down whether doubling is realistic—or irrelevant—and why owning a company with visible, growing demand may matter more than chasing the next headline. Read the full newsletter to see how Nebius could quietly compound in 2026.

Let’s embark on this transformative journey together and position your portfolio for success in this evolving market landscape!

Be sure to read through to the end to catch all the valuable insights this newsletter delivers to your inbox today.

Five years ago, Power Solutions International $PSIX ( ▼ 1.37% ) shares were trading around $4.53 each. Today, it's closed at $61.53—a substantial 1,330% gain driven by its focus on engines and power systems for industrial, standby, and alternative-fuel applications, with growing demand in data centers and clean-energy shifts. The chart shows a quiet period through 2023, then steady growth in 2024, followed by a sharp push in 2025, with a 52-week high of $121.47 marking the recent peak.

In simple terms, the compound annual growth rate (CAGR) is 68.42%. That's the average yearly boost—calculated by raising the total growth factor to the 1/5 power and subtracting 1. It means growing your money by nearly 70% each year, on average.

Dollar-cost averaging (DCA) keeps the engine running smoothly: Invest $500 every month for five years, totaling $30,000.

This buys more shares on slower days and fewer on fast ones, balancing the revs. Projecting forward at the same historical pace, with a monthly growth rate of about 4.44% from $61.53, your shares build power over time.

After 60 months, your total could reach $147,998. That's a gain of $117,998—a 393% return on your investment. The early buys get the biggest torque from compounding, while later ones still add to the drive.

This is based on the past, which isn't a sure road ahead—power system stocks can shift with industrial demand or fuel trends, but a P/E ratio of 11.71 shows reasonable pricing, and a $1.42B market cap gives room to grow. With that 52-week high of $121.47 in view, PSIX has momentum. If DCA's your steady throttle, it could turn your $500 habit into a high-performance payoff by 2031. Rev it up?

AI investing in 2026 is no longer about spotting a trend early. That phase is over. The market has already decided that artificial intelligence is real, durable, and capital-intensive. What matters now is who can scale fast enough without breaking.

This is where overwhelmed investors often feel stuck. Too many tickers. Too much hype. Too many opinions. Yet beneath the noise, a smaller group of companies is quietly doing the unglamorous work: building the physical backbone on which AI models actually run.

Nebius sits squarely in that category.

The stock’s performance over the past year alone tells only part of the story. Yes, it surged dramatically. Yes, it pulled back. But neither movement explains why the business keeps attracting capital, customers, and attention from the industry's most prominent players.

The real question entering 2026 is not whether AI demand exists—it clearly does. The question is whether Nebius can convert that demand into sustained revenue, margin expansion, and scale without losing control of costs or ownership.

For an investor with limited time, this isn’t about predicting daily price action. It’s about understanding whether the foundation being built is strong enough to support another phase of growth.

Over the past year, Nebius $NBIS ( ▲ 1.13% ) completed a transformation that many companies only talk about. It rebranded, repositioned, listed on a major exchange, and committed aggressively to capital deployment—all while revenue growth accelerated quarter after quarter.

The numbers matter, but the sequence matters more.

Early quarters showed explosive growth off a small base. That alone wouldn’t be enough. What changed the narrative was execution. The AI cloud business reached adjusted EBITDA positivity ahead of schedule. Capacity sold out entirely during key quarters. Demand didn’t just grow—it overwhelmed available supply.

Then came the inflection point: a multi-billion-dollar agreement to provide dedicated AI capacity to Microsoft from its U.S. data center operations. This wasn’t speculative demand. It was a contracted use by one of the most sophisticated buyers in the world.

Soon after, guidance shifted upward again. Power capacity targets expanded dramatically. Next-generation Nvidia hardware began deployment at scale. A long-term annual recurring revenue target of $7–9 billion by the end of 2026 was put on the table—and importantly, management disclosed that roughly half of that target is already contracted.

This is no longer a story about whether Nebius can sell AI compute. It’s about how fast it can connect power, install hardware, and deliver capacity without compromising efficiency.

In AI infrastructure, efficiency determines winners long before profits show up on income statements.

Nebius operates with unusually tight vertical control—from cooling systems to software orchestration. That design choice allows it to run data centers materially more efficiently than many traditional competitors, in an environment where power availability is the primary constraint, that advantage compounds quickly.

Pipeline growth reflects this. Enterprise and startup demand is accelerating, not slowing. Inference workloads—where models are actually used rather than trained—are growing faster than chip spending itself, reinforcing the need for scalable, cost-effective infrastructure.

Importantly, Nebius is not chasing every experimental chip architecture. For now, it is fully aligned with Nvidia hardware because that’s what customers want today. Alternatives are monitored, not forced. This focus reduces execution risk at a time when mistakes are expensive.

The broader company is expected to approach breakeven around the end of 2025. Mid-term guidance targets 20–30% EBITDA margins, signaling that management is not blind to profitability—it’s sequencing it after scale.

For a busy investor, this matters because it separates disciplined expansion from reckless growth. Capital intensity is high, but so is visibility.

No serious opportunity comes without friction.

Nebius operates in one of the most capital-hungry industries on the planet. Expanding data center capacity and acquiring advanced GPUs requires constant access to funding. How future capital is raised—debt versus equity, dilution versus partnerships—will shape long-term returns.

Competition is real. Hyperscalers aren’t standing still. Other specialized AI clouds are scaling aggressively. Pricing pressure will emerge over time.

But not all risks are equal.

What matters most is whether Nebius continues to secure long-term contracts that justify its build-out pace. So far, demand visibility remains strong. Contracted power, booked ARR, and enterprise pipeline growth suggest that expansion is not speculative—it’s customer-driven.

The stock’s volatility reflects uncertainty around execution timing, not collapse in fundamentals. For investors who confuse price movement with business deterioration, this kind of setup feels uncomfortable. For disciplined investors, discomfort often signals opportunity.

The temptation to fixate on whether a stock can “double again” is understandable—but misleading.

Even a return to prior highs in 2026 would represent substantial upside from current levels. That outcome would require no heroic assumptions—only continued delivery against targets already communicated.

Could the stock exceed that? Yes. Additional hyperscaler contracts, faster-than-expected margin expansion, or sustained infrastructure scarcity could all reprice the business higher.

But the more important question is simpler: Is this a company building something essential, with growing visibility, in a market that isn’t shrinking?

For the overwhelmed investor, satisfaction doesn’t come from catching the exact top. It comes from owning businesses that make sense, watching fundamentals improve, and letting time do the heavy lifting.

Nebius doesn’t need to be perfect. It needs to keep doing what it’s already doing—scaling deliberately, securing demand, and converting infrastructure into recurring revenue.

If that continues, 2026 won’t be defined by a single headline or a single quarter. It will be defined by quiet progress that compounds while attention is elsewhere.

Ready to Revolutionize Your Wealth?

Here's what's waiting for you:

With the world becoming increasingly digital, this question will be on the minds of millions of people looking for new income streams in 2025.

The answer is—Absolutely!

Thank you for taking the time to read today’s email! Your support is what allows me to send out this newsletter for free every day. 

 What do you think of the new format? Please provide your feedback in the poll below, and if you find the newsletter valuable, feel free to share it with other investors!

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.