GM. This is Milk Road AI, the newsletter trying to invest in the picks and shovels of the AI gold rush.
A specific market of the AI industry is on track to grow from $25B to nearly $400B in just five years. One stock keeps standing out and we break down why in today's edition.
Speaking of the infrastructure powering this boom, that's exactly what today's partner Circle is building.
Your agent can code, browse, and find the best deals, but it’s flat broke. Circle Agent Stack is a programmable money layer for the agentic economy that lets agents hold USDC, discover and pay for services, and get paid.
THE LEADER IN THE NEOCLOUD SPACE 👑
The neocloud market is exploding right now:
- Generated roughly $25B in revenue in 2025.
- Grew 223% year over year.
- Synergy Research projects it will approach $400B by 2031.
At this scale, it's one of the fastest-growing infrastructure markets we've ever seen.
There are plenty of ways to invest in the space with CoreWeave (CRWV), IREN (IREN), Cipher Mining (CIFR) and Nebius (NBIS).
But our analysts continue to bet on Nebius:
Most neocloud companies are doing the same thing. They’re renting GPUs by the hour and marking them up.
But Nebius is doing something structurally different by building the entire stack.
It owns the infrastructure, designs its rack architecture and optimizes the software. That gives it more control over performance and potentially better economics as AI demand scales.
And their financials are already reflecting that:
- $399M in Q1 revenue (+684% YoY).
- Net income swung from a $104M loss to $621M in profit over twelve months.
- Cash from operations went from negative $184M to positive $2.26B in the same period.
Along with impressive financials, Nebius’s contracted backlog sits at $49B:
- Anchored by a $27B agreement with Meta.
- A deal worth up to $19.4B with Microsoft.
For the full year 2026, Nebius is guiding for an annualized revenue run rate of $7-9B.
Our lead analyst bought NBIS before most investors were paying attention. He's currently up 42% on the position.
And yesterday, he bought even more with $300 as the year-end price target.
He believes the market is still underestimating how valuable AI compute infrastructure will become over the next few years.
For more value driven investment insights, join Milk Road PRO to see every trade, every thesis and every portfolio update from our analysts.
And right now, we’re running a 33% discount on PRO till July 13th.
THE FIRST FINANCIAL STACK BUILT FOR AGENTS
Your AI agent can browse the web, write code, and schedule your meetings.
Hand it a bill, though? Uh-oh spaghetti-o.
Until now, money was the missing piece. Circle Agent Stack fixes that.
Circle Agent Stack is the financial-infrastructure layer built specifically for autonomous agents:
- Agent Wallets
- Agent Marketplace
- Nanopayments powered by Gateway
- Circle CLI
- Circle Skills
All powered by USDC.
Agents are evolving from assistants into economic actors. The agents that run on purpose-built financial infrastructure will be the ones that actually work.
