"Magnificent Seven stocks have been some of the most successful growth stocks and make up a large portion of the S&P 500. However, all of those same stocks have valuations above $1 trillion, which makes it harder for those same stocks to double, triple, or 10x from current levels. That's why some investors are seeking smaller growth stocks that are posting impressive revenue growth. These stocks have the potential to outperform the Magnificent Seven stocks"
"in 2026 and receive more attention from investors. Nebius (NBIS) Nebius ( NASDAQ:NBIS) offers full-stack cloud infrastructure for AI giants like Microsoft ( NASDAQ:MSFT) and Meta Platforms ( NASDAQ:META). This service will become more valuable as tech giants invest more in the physical infrastructure that's necessary for AI workloads. The company recently announced a 5-year deal with Meta Platforms for $3 billion, and the recurring revenue from these contracts can lead to significant stock gains."
Massive trillion-dollar growth stocks have become harder to produce outsized returns, prompting investors to target smaller growth names with strong revenue growth and AI exposure. Nebius provides full-stack cloud infrastructure for major AI customers, secured a five-year $3 billion deal with Meta and a separate five-year $19.4 billion contract that allocates 300 megawatts to Microsoft. Nebius plans 2.5 GW of active power and projects $7–$9 billion in annual recurring revenue by year-end 2026 while holding stakes in AI-related companies. Palantir operates an annual recurring revenue model, delivered 204 deals over $1 million and 53 deals above $10 million in Q3, and its shares have risen materially this year and over five years.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]