Nebius Group Emerges as Core Pillar of AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy NBIS?
Source: Fool
- Strategic Partnerships: Nebius Group's multi-year agreements with Microsoft and Meta, valued at up to $19.4 billion, highlight its strong position in the AI infrastructure market, effectively meeting the cloud giants' demands for GPU infrastructure.
- Revenue Growth Outlook: Nebius is projecting annual recurring revenue between $7 billion and $9 billion for 2026, a remarkable increase from just $90 million two years ago, showcasing its robust growth potential in the rapidly expanding AI market.
- Investor Confidence Surge: Nebius shares have surged 326% over the past year, reflecting optimistic market expectations for its future growth, while its market cap-to-ARR ratio of 3.5 indicates relatively attractive valuation metrics.
- Technological Collaboration Edge: The recent $2 billion investment from Nvidia ensures Nebius has preferred access to next-generation GPU architectures, further enhancing its competitiveness and market share in the AI infrastructure sector.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 101.950
Low
130.00
Averages
164.20
High
211.00
Current: 101.950
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nebius Group Partners with Nvidia for Early Technology Access
- Rapid Revenue Growth: Nebius Group reported a staggering 547% increase in total revenue and an 802% rise in its core AI business in Q4 2023, indicating strong market demand during its rapid expansion, with projected annual recurring revenue reaching $7 to $9 billion by 2026, significantly boosting investor confidence.
- Strategic Partnership with Nvidia: By securing a deal with Nvidia, Nebius gains early access to cutting-edge technology, providing its clients with a competitive edge and likely attracting more developers and AI hyperscalers to its platform, thereby accelerating market share growth.
- Market Potential and Risks: With a market value of approximately $25 billion, Nebius is still in the process of expanding its computing footprint and has yet to achieve profitability; however, its growth potential in the AI sector positions it as a multibagger stock, necessitating investor attention on the timing of its profitability transition.
- Elevating Industry Position: As a neocloud company focused on AI-first infrastructure, Nebius is emerging as a leader in the market with its full-stack solutions, and despite profitability challenges, its ongoing technological investments and market demand suggest promising growth opportunities ahead.
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- Broadcom Growth Potential: Broadcom anticipates that its custom AI chips will generate over $100 billion in annual sales by 2027, a significant increase from the $8.4 billion reported in the latest quarter, which is expected to drive its stock price significantly higher later this year.
- Nvidia's Market Position: Despite Nvidia's stock trading at a forward P/E of just 20.2 times, the demand for AI computing chips far exceeds its production capacity, and the introduction of new architectures will further solidify its market leadership, presenting an excellent buying opportunity.
- Microsoft's Investment Opportunity: With its P/E ratio nearing a decade low, Microsoft stands out as a leading AI facilitator, making this rare buying opportunity particularly significant in the current market environment, likely attracting more investor interest.
- Taiwan Semiconductor's Growth Outlook: Taiwan Semiconductor expects a 25% compound annual growth rate from 2024 to 2029, and with its critical technology in the AI sector and strong partnerships with major tech companies, it emerges as a key investment choice in the AI wave.
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- Broadcom's Growth Potential: Broadcom anticipates that its custom AI chips will generate over $100 billion in annual sales by 2027, a significant leap from the $8.4 billion reported last quarter, indicating immense future growth potential that could substantially enhance the company's market value.
- Nvidia's Market Demand: Nvidia faces demand for its AI computing chips that far exceeds its production capacity, and with a forward P/E ratio of just 20.2, despite projections for data center growth extending through 2030, the stock presents a compelling investment opportunity at this time.
- Microsoft's Buying Opportunity: Microsoft is trading at nearly its lowest price-to-earnings ratio in a decade, and the current sell-off offers a rare buying opportunity for investors; as a leading AI facilitator, Microsoft is poised to maintain its significant market relevance moving forward.
- Taiwan Semiconductor's Growth Trajectory: Taiwan Semiconductor expects its revenue to grow at a compounded annual growth rate of 25% between 2024 and 2029, and as the world's largest chip foundry with strong partnerships with major tech firms, it is well-positioned to capitalize on the booming AI sector.
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Investment Opportunities Amid AI Stock Market Pullback
- Market Pullback Context: AI stocks are facing sell-offs due to uncertainty surrounding the Iran war and skepticism about AI spending returns; however, the long-term outlook remains bullish, presenting a buying opportunity for investors.
- Nvidia and Broadcom Competition: Nvidia's GPUs are considered the industry standard, with projected sales of $1 trillion for Blackwell and Rubin chips by 2027, while Broadcom is partnering with AI hyperscalers to design custom chips, expecting over $100 billion in annual revenue by 2027.
- Cloud Giants' Investments: Alphabet and Microsoft are seeing significant returns on their cloud computing investments, with Azure and Google Cloud revenues growing 39% and 48% year-over-year, respectively; despite both stocks being down over 20%, their investment value remains intact.
- Nebius's Rapid Growth: Nebius focuses on AI hardware and expects its annual revenue to soar from $1.25 billion to between $7 billion and $9 billion by the end of 2025, indicating strong demand for AI computing power, and with its stock down 30% from its all-time high, it presents a great investment opportunity.
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AI Demand Fuels Growth in Computing Units Market
- Strong Market Demand: The insatiable demand for AI is driving profits for cloud computing companies, with Nvidia projected to achieve $1 trillion in chip sales by 2027 and Broadcom's custom AI chips expected to generate over $100 billion in annual revenue.
- Cloud Giants Performance: Alphabet and Microsoft are reaping significant returns from their cloud computing investments, with Azure and Google Cloud revenues increasing by 39% and 48% year-over-year, respectively, despite both companies' stock prices dropping over 20%, indicating their sustained market leadership.
- Investment Opportunities Arise: While skepticism surrounds AI stocks regarding uncertain returns, the long-term outlook remains bullish, suggesting that the current 20% drop in stock prices presents a prime buying opportunity for investors.
- Emerging Company Surge: Nebius, focused on AI hardware, anticipates its annual revenue to soar from $1.25 billion to between $7 billion and $9 billion by the end of 2025, reflecting the rapid growth in demand for AI computing power, and its stock is down 30%, making it an attractive investment option.
See More
Nvidia Leads a New Era in AI Market
- Enterprise AI Adoption Accelerates: Through its partnership with Palantir Technologies, Nvidia is evolving from merely selling hardware to developing full-stack AI solutions, enabling Fortune 500 companies to build proprietary AI systems, which creates high-margin recurring revenue and transforms into long-term partnerships.
- Inference and Infrastructure Era Arrives: As the demand for AI inference surges, Nvidia is not only supplying GPUs but also a comprehensive software stack including CUDA, TensorRT, and NIM, creating a powerful flywheel effect that drives ongoing AI development and infrastructure upgrades.
- Physical AI Applications Present Vast Opportunities: Nvidia's platforms are central to accelerating robotics, autonomous vehicles, and quantum computing, with future deployments of AI-powered robots in warehouses and supply chains, establishing a long-duration revenue cycle for the company.
- Future Stock Price Expectations: If Nvidia succeeds across these new vectors, a reasonable forecast suggests an annual compound growth rate of 25% over the next five years, potentially leading to a four- or fivefold increase in stock price and a market valuation exceeding $20 trillion, reflecting sustained hypergrowth potential.
See More
Nebius Group Partners with Nvidia for Early Technology Access
- Rapid Revenue Growth: Nebius Group reported a staggering 547% increase in total revenue and an 802% rise in its core AI business in Q4 2023, indicating strong market demand during its rapid expansion, with projected annual recurring revenue reaching $7 to $9 billion by 2026, significantly boosting investor confidence.
- Strategic Partnership with Nvidia: By securing a deal with Nvidia, Nebius gains early access to cutting-edge technology, providing its clients with a competitive edge and likely attracting more developers and AI hyperscalers to its platform, thereby accelerating market share growth.
- Market Potential and Risks: With a market value of approximately $25 billion, Nebius is still in the process of expanding its computing footprint and has yet to achieve profitability; however, its growth potential in the AI sector positions it as a multibagger stock, necessitating investor attention on the timing of its profitability transition.
- Elevating Industry Position: As a neocloud company focused on AI-first infrastructure, Nebius is emerging as a leader in the market with its full-stack solutions, and despite profitability challenges, its ongoing technological investments and market demand suggest promising growth opportunities ahead.
See More
AI Spending Expected to Grow Through 2030
- Broadcom Growth Potential: Broadcom anticipates that its custom AI chips will generate over $100 billion in annual sales by 2027, a significant increase from the $8.4 billion reported in the latest quarter, which is expected to drive its stock price significantly higher later this year.
- Nvidia's Market Position: Despite Nvidia's stock trading at a forward P/E of just 20.2 times, the demand for AI computing chips far exceeds its production capacity, and the introduction of new architectures will further solidify its market leadership, presenting an excellent buying opportunity.
- Microsoft's Investment Opportunity: With its P/E ratio nearing a decade low, Microsoft stands out as a leading AI facilitator, making this rare buying opportunity particularly significant in the current market environment, likely attracting more investor interest.
- Taiwan Semiconductor's Growth Outlook: Taiwan Semiconductor expects a 25% compound annual growth rate from 2024 to 2029, and with its critical technology in the AI sector and strong partnerships with major tech companies, it emerges as a key investment choice in the AI wave.
See More
Top Five Stocks to Invest in for 2025
- Broadcom's Growth Potential: Broadcom anticipates that its custom AI chips will generate over $100 billion in annual sales by 2027, a significant leap from the $8.4 billion reported last quarter, indicating immense future growth potential that could substantially enhance the company's market value.
- Nvidia's Market Demand: Nvidia faces demand for its AI computing chips that far exceeds its production capacity, and with a forward P/E ratio of just 20.2, despite projections for data center growth extending through 2030, the stock presents a compelling investment opportunity at this time.
- Microsoft's Buying Opportunity: Microsoft is trading at nearly its lowest price-to-earnings ratio in a decade, and the current sell-off offers a rare buying opportunity for investors; as a leading AI facilitator, Microsoft is poised to maintain its significant market relevance moving forward.
- Taiwan Semiconductor's Growth Trajectory: Taiwan Semiconductor expects its revenue to grow at a compounded annual growth rate of 25% between 2024 and 2029, and as the world's largest chip foundry with strong partnerships with major tech firms, it is well-positioned to capitalize on the booming AI sector.
See More
Investment Opportunities Amid AI Stock Market Pullback
- Market Pullback Context: AI stocks are facing sell-offs due to uncertainty surrounding the Iran war and skepticism about AI spending returns; however, the long-term outlook remains bullish, presenting a buying opportunity for investors.
- Nvidia and Broadcom Competition: Nvidia's GPUs are considered the industry standard, with projected sales of $1 trillion for Blackwell and Rubin chips by 2027, while Broadcom is partnering with AI hyperscalers to design custom chips, expecting over $100 billion in annual revenue by 2027.
- Cloud Giants' Investments: Alphabet and Microsoft are seeing significant returns on their cloud computing investments, with Azure and Google Cloud revenues growing 39% and 48% year-over-year, respectively; despite both stocks being down over 20%, their investment value remains intact.
- Nebius's Rapid Growth: Nebius focuses on AI hardware and expects its annual revenue to soar from $1.25 billion to between $7 billion and $9 billion by the end of 2025, indicating strong demand for AI computing power, and with its stock down 30% from its all-time high, it presents a great investment opportunity.
See More
AI Demand Fuels Growth in Computing Units Market
- Strong Market Demand: The insatiable demand for AI is driving profits for cloud computing companies, with Nvidia projected to achieve $1 trillion in chip sales by 2027 and Broadcom's custom AI chips expected to generate over $100 billion in annual revenue.
- Cloud Giants Performance: Alphabet and Microsoft are reaping significant returns from their cloud computing investments, with Azure and Google Cloud revenues increasing by 39% and 48% year-over-year, respectively, despite both companies' stock prices dropping over 20%, indicating their sustained market leadership.
- Investment Opportunities Arise: While skepticism surrounds AI stocks regarding uncertain returns, the long-term outlook remains bullish, suggesting that the current 20% drop in stock prices presents a prime buying opportunity for investors.
- Emerging Company Surge: Nebius, focused on AI hardware, anticipates its annual revenue to soar from $1.25 billion to between $7 billion and $9 billion by the end of 2025, reflecting the rapid growth in demand for AI computing power, and its stock is down 30%, making it an attractive investment option.
See More
Nvidia Leads a New Era in AI Market
- Enterprise AI Adoption Accelerates: Through its partnership with Palantir Technologies, Nvidia is evolving from merely selling hardware to developing full-stack AI solutions, enabling Fortune 500 companies to build proprietary AI systems, which creates high-margin recurring revenue and transforms into long-term partnerships.
- Inference and Infrastructure Era Arrives: As the demand for AI inference surges, Nvidia is not only supplying GPUs but also a comprehensive software stack including CUDA, TensorRT, and NIM, creating a powerful flywheel effect that drives ongoing AI development and infrastructure upgrades.
- Physical AI Applications Present Vast Opportunities: Nvidia's platforms are central to accelerating robotics, autonomous vehicles, and quantum computing, with future deployments of AI-powered robots in warehouses and supply chains, establishing a long-duration revenue cycle for the company.
- Future Stock Price Expectations: If Nvidia succeeds across these new vectors, a reasonable forecast suggests an annual compound growth rate of 25% over the next five years, potentially leading to a four- or fivefold increase in stock price and a market valuation exceeding $20 trillion, reflecting sustained hypergrowth potential.
See More
