Between October and November, shares of Nebius (NBIS) formed a bearish double peak. Selling in NBIS stock continued up until last week. On December 19, the stock gained 14.56% to close at nearly $90.
Stock markets speculated that Nebius could attract a buyout offer in 2026. Microsoft (MSFT), Alphabet (GOOGL), or Amazon (AMZN) are potential bidders for this AI infrastructure firm.
Nebius’s peer group includes CoreWeave (CRWV). However, CRWV stock is a high-risk holding. The firm is accumulating debt and selling convertible bonds that would dilute shareholders in the future. It needs the capital to buy more AI servers. If its customers run into cash flow problems, CoreWeave would have trouble collecting unpaid bills.
Broadcom (AVGO) might potentially rebound after the vicious sell-off, after posting strong quarterly results. Together with Nvidia (NVDA), the firm should benefit from the continued heavy spending for AI-related hardware.
In the electrical utility space, Power Solutions (PSIX), Constellation Energy (CEG), American Electric Power (AEP), and The Southern Company (SO) should benefit from strong demand. AI servers require enormous amounts of energy. They will need nuclear energy power plants to support their needs. Similarly, natural gas firms are well-positioned to supply energy for AI data centers.
Monolithic Power (MPWR) is worth considering in 2026. The firm designs integrated power solutions. AI servers will need companies that help them cut energy consumption in electronic systems.
