Historically, elevated Treasury yields weigh on the stock market as capital rotates into safer assets. However, in an environment of high inflation (3.4% in the US for August), these yields offer limited real financial return.

🩷 eSSD Storage – Citi recommends buying shares of memory chipmakers Samsung Electronics and SK Hynix. The bank's analysts expect a sharp surge in demand for enterprise eSSD drives (nearly 53% by 2027).

Over the summer, both companies underwent corrections of 49% and 58%, unwinding the overbought conditions built up during the AI hype wave in the first half of the year.

🩷 Robotics Components – Citi advises buying shares of humanoid robot component suppliers: Jiangsu Hengli Hydraulic, Leader Drive and Sanhua Intelligent Controls. China is poised to secure substantial component orders as a leading US developer targets a 10x ramp-up in robot production (could it be Elon Musk?).

Jiangsu Hengli Hydraulic and Sanhua Intelligent Controls are down over the past year; their shares could rebound once US orders are confirmed. Leader Drive rallied earlier in the year on the AI wave before undergoing a 44% correction.

🩷 Data Center Infrastructure – Bernstein recommends stocks in the interconnect sector: Amphenol (the market leader in copper interconnects, currently strengthening its footprint in optics) and TE Connectivity (a 70% surge in orders year-to-date).

TE Connectivity remains undervalued, down 1% over the past year.

🩷 Memory & Hard Drives – Ahead of earnings season, Goldman Sachs suggests buying Applied Materials (poised to benefit from rising DRAM capex) and Seagate (boosted by rising HDD prices and progress in HAMR technology).

Applied Materials experienced a 43% correction over the summer, while Seagate fell 38% from its peak and has been consolidating in an accumulation zone for three months.

Crypto Asset Service Providers (CASPs) authorized under MiCA must stop providing services related to non-MiCA-compliant stablecoins to clients in the European Union.

The demand for blue-collar trades is rising, and robots aren't threatening this sector just yet. Meanwhile, the productivity of office workers continues to grow alongside AI adoption, leading to active layoffs of redundant staff.

It all comes down to the business model: while the world’s largest retailers, healthcare, and energy companies settle for a profit of $5 per $100, Microsoft, Alphabet, and Meta keep over $30.

Nvidia ended up at the top of the food chain because AI is transforming business structures, allowing companies to serve more customers at lower costs. But in return, Microsoft, Alphabet, Meta, and Amazon are forced to invest hundreds of billions of dollars into data centers, with Nvidia supplying the chips and software for them.

Key Partners:
• NVIDIA: Strategic technology and hardware partner. Nebius holds NVIDIA Exemplar Cloud Partner status, which guarantees priority allocations of high-demand GPU architectures.
• Infrastructure Vendors: Supermicro, as well as suppliers of InfiniBand/Ethernet networking gear and modular data center power systems.
• Software Ecosystem Partners: CrowdStrike, Datadog, DataRobot.

Long-term Contracts and Client Base:
The company’s contracted revenue backlog exceeds $40B:
• Microsoft and Meta Platforms: The largest anchor clients, with combined contracts exceeding $30B.
• Strict Take-or-Pay Structure: Contracts are structured on a strict take-or-pay basis, meaning clients are required to pay for compute capacity regardless of actual usage, backed by billions in upfront advances.
• AI Labs and Enterprise Sector: Cohere, Reflection AI, Shopify, along with a growing pool of startups training their own foundational and domain-specific models.