Nebius Expands Data Centers and Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NBIS?
Source: NASDAQ.COM
- Data Center Expansion Plan: Nebius aims to operate 16 data centers in the U.S. and Europe by the end of 2026, a significant increase from just 2 in 2024, reflecting its strategic positioning amid surging demand for AI computing power.
- Contracted Power Capacity Advantage: Nebius currently holds over 3 gigawatts of contracted data center power capacity, nearly 20 times its active capacity at the end of 2025, providing a solid foundation for rapid revenue growth in the future.
- Revenue Growth Potential: Nebius reported $530 million in revenue for 2025, nearly a 6-fold increase from the previous year, with expectations for a 27-fold revenue surge over the next three years, highlighting its strong demand and market position in the AI sector.
- Market Valuation Outlook: If Nebius achieves $14.5 billion in revenue by 2028 and trades at 8.4 times sales, its market cap could reach $122 billion, almost 5 times its current valuation, indicating substantial investment potential.
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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: 98.010
Low
130.00
Averages
164.20
High
211.00
Current: 98.010
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 Poised for 1000% Returns Over Next Decade
- Surging Annual Recurring Revenue: Nebius closed 2025 with $1.25 billion in annual recurring revenue (ARR) and projects up to $9 billion for 2026, driven by its growing power contracts, particularly the $19.4 billion deal with Microsoft.
- Power Contract Expansion: The company anticipates having 3 gigawatts of contracted power by the end of 2026, having already secured over 2 gigawatts, which enables it to support nine additional deals like the Microsoft agreement, significantly enhancing its market competitiveness.
- Cash Reserves and Acquisitions: With $3.7 billion in cash, Nebius is well-positioned to accumulate more power and build additional data centers, while strategic acquisitions like Tavily will strengthen its software capabilities, further solidifying its market leadership.
- Industry Demand and Competitive Edge: As AI data centers face electricity shortages and a lack of skilled workers, Nebius is ahead of the competition with completed infrastructure and secured energy contracts, likely attracting more tech giants to sign expensive deals, paving the way for a potential tenfold stock return.
See More
Nebius Group: Rising Star in AI Infrastructure
- Surging Market Demand: U.S. data center power demand is projected to rise from 25 gigawatts in 2024 to 106 gigawatts by 2035, driving urgent needs for AI computing capacity, with Nebius playing a crucial role in this market.
- Data Center Expansion: Nebius plans to operate 16 data centers in the U.S. and Europe by the end of 2026, a significant increase from just 2 in 2024, demonstrating its proactive approach to meet AI workload demands.
- Significant Contracted Capacity: Nebius currently holds over 3 gigawatts of contracted data center capacity, nearly 20 times its active capacity at the end of 2025, and as this capacity is converted, its revenue growth is expected to accelerate dramatically.
- Strong Revenue Projections: Nebius reported $530 million in revenue for 2025, nearly a 6x increase from the previous year, with expectations of a 27x revenue growth over the next three years, potentially elevating its market cap to $122 billion, almost 5 times its current valuation.
See More
Nebius Expands Data Centers and Revenue Growth
- Data Center Expansion Plan: Nebius aims to operate 16 data centers in the U.S. and Europe by the end of 2026, a significant increase from just 2 in 2024, reflecting its strategic positioning amid surging demand for AI computing power.
- Contracted Power Capacity Advantage: Nebius currently holds over 3 gigawatts of contracted data center power capacity, nearly 20 times its active capacity at the end of 2025, providing a solid foundation for rapid revenue growth in the future.
- Revenue Growth Potential: Nebius reported $530 million in revenue for 2025, nearly a 6-fold increase from the previous year, with expectations for a 27-fold revenue surge over the next three years, highlighting its strong demand and market position in the AI sector.
- Market Valuation Outlook: If Nebius achieves $14.5 billion in revenue by 2028 and trades at 8.4 times sales, its market cap could reach $122 billion, almost 5 times its current valuation, indicating substantial investment potential.
See More
Top AI Stocks to Watch for 2026
- Nvidia's Growth Potential: Nvidia is projected to achieve a 57% annual growth rate in 2026, despite a year-over-year decline, reflecting strong market demand, particularly as AI capital expenditures are expected to exceed $500 billion, indicating rapid industry expansion.
- TSMC's Critical Role: TSMC anticipates nearly 30% revenue growth in 2026, while AI-related chip revenue is expected to grow at a compound annual growth rate of nearly 60% from 2024 to 2029, underscoring its importance and future growth potential in the AI supply chain.
- Nebius Group's Rapid Ascent: Nebius Group's annual run rate is expected to reach $1.25 billion in 2025 and soar to between $7 billion and $9 billion by the end of 2026, showcasing its strong growth potential in the AI cloud computing market, making it a potential top stock for 2026.
- Overall AI Industry Outlook: As AI technology continues to evolve, investors will see more companies benefiting from this trend, particularly in the chip design and manufacturing sectors, which are expected to become investment hotspots in the coming years.
See More
Nebius' Q4 Earnings Shortfall Does Not Alter Its Growth Story
Earnings Report Overview: Nebius shares fell after the release of its Q4 2025 earnings, which missed both top and bottom line forecasts, despite reporting robust revenue growth driven by a shift to AI cloud services.
Business Growth Context: The company experienced significant revenue growth of 55% sequentially and nearly 550% year-over-year, indicating strong business expansion despite the earnings shortfall.
Future Outlook and Expansion Plans: Analysts remain cautiously optimistic about Nebius's future, highlighting aggressive expansion plans, including a new data center in France, which is expected to bolster long-term growth.
Market Sentiment and Investment Recommendations: Market reactions were mixed post-earnings, with some analysts raising price targets and suggesting that Nebius stock may continue to face challenges until new catalysts emerge.
See More
Nebius Group Exceeds Revenue Expectations
- Revenue Growth Exceeds Expectations: Nebius Group's annual revenue run rate target of $1.1 billion for the end of 2025 was surpassed, achieving $1.25 billion, showcasing the company's strong performance in the AI cloud infrastructure sector and solidifying its market position.
- Optimistic Future Outlook: The company anticipates a sevenfold increase in its revenue run rate for 2026, reflecting confidence in market demand, particularly amid surging needs for AI computing capacity, which may attract more investor interest.
- Data Center Expansion Plans: Nebius plans to achieve over 3 gigawatts of contracted compute capacity by the end of 2026, exceeding prior guidance, indicating robust demand for AI computing capabilities that could drive future revenue growth.
- Positive Market Reaction: Despite Nebius's stock price having tripled last year, it still rose by 8.2% today, demonstrating investor confidence in the company's growth potential, with a market capitalization of approximately $25 billion.
See More
Nebius Group Poised for 1000% Returns Over Next Decade
- Surging Annual Recurring Revenue: Nebius closed 2025 with $1.25 billion in annual recurring revenue (ARR) and projects up to $9 billion for 2026, driven by its growing power contracts, particularly the $19.4 billion deal with Microsoft.
- Power Contract Expansion: The company anticipates having 3 gigawatts of contracted power by the end of 2026, having already secured over 2 gigawatts, which enables it to support nine additional deals like the Microsoft agreement, significantly enhancing its market competitiveness.
- Cash Reserves and Acquisitions: With $3.7 billion in cash, Nebius is well-positioned to accumulate more power and build additional data centers, while strategic acquisitions like Tavily will strengthen its software capabilities, further solidifying its market leadership.
- Industry Demand and Competitive Edge: As AI data centers face electricity shortages and a lack of skilled workers, Nebius is ahead of the competition with completed infrastructure and secured energy contracts, likely attracting more tech giants to sign expensive deals, paving the way for a potential tenfold stock return.
See More
Nebius Group: Rising Star in AI Infrastructure
- Surging Market Demand: U.S. data center power demand is projected to rise from 25 gigawatts in 2024 to 106 gigawatts by 2035, driving urgent needs for AI computing capacity, with Nebius playing a crucial role in this market.
- Data Center Expansion: Nebius plans to operate 16 data centers in the U.S. and Europe by the end of 2026, a significant increase from just 2 in 2024, demonstrating its proactive approach to meet AI workload demands.
- Significant Contracted Capacity: Nebius currently holds over 3 gigawatts of contracted data center capacity, nearly 20 times its active capacity at the end of 2025, and as this capacity is converted, its revenue growth is expected to accelerate dramatically.
- Strong Revenue Projections: Nebius reported $530 million in revenue for 2025, nearly a 6x increase from the previous year, with expectations of a 27x revenue growth over the next three years, potentially elevating its market cap to $122 billion, almost 5 times its current valuation.
See More
Nebius Expands Data Centers and Revenue Growth
- Data Center Expansion Plan: Nebius aims to operate 16 data centers in the U.S. and Europe by the end of 2026, a significant increase from just 2 in 2024, reflecting its strategic positioning amid surging demand for AI computing power.
- Contracted Power Capacity Advantage: Nebius currently holds over 3 gigawatts of contracted data center power capacity, nearly 20 times its active capacity at the end of 2025, providing a solid foundation for rapid revenue growth in the future.
- Revenue Growth Potential: Nebius reported $530 million in revenue for 2025, nearly a 6-fold increase from the previous year, with expectations for a 27-fold revenue surge over the next three years, highlighting its strong demand and market position in the AI sector.
- Market Valuation Outlook: If Nebius achieves $14.5 billion in revenue by 2028 and trades at 8.4 times sales, its market cap could reach $122 billion, almost 5 times its current valuation, indicating substantial investment potential.
See More
Top AI Stocks to Watch for 2026
- Nvidia's Growth Potential: Nvidia is projected to achieve a 57% annual growth rate in 2026, despite a year-over-year decline, reflecting strong market demand, particularly as AI capital expenditures are expected to exceed $500 billion, indicating rapid industry expansion.
- TSMC's Critical Role: TSMC anticipates nearly 30% revenue growth in 2026, while AI-related chip revenue is expected to grow at a compound annual growth rate of nearly 60% from 2024 to 2029, underscoring its importance and future growth potential in the AI supply chain.
- Nebius Group's Rapid Ascent: Nebius Group's annual run rate is expected to reach $1.25 billion in 2025 and soar to between $7 billion and $9 billion by the end of 2026, showcasing its strong growth potential in the AI cloud computing market, making it a potential top stock for 2026.
- Overall AI Industry Outlook: As AI technology continues to evolve, investors will see more companies benefiting from this trend, particularly in the chip design and manufacturing sectors, which are expected to become investment hotspots in the coming years.
See More
Nebius' Q4 Earnings Shortfall Does Not Alter Its Growth Story
Earnings Report Overview: Nebius shares fell after the release of its Q4 2025 earnings, which missed both top and bottom line forecasts, despite reporting robust revenue growth driven by a shift to AI cloud services.
Business Growth Context: The company experienced significant revenue growth of 55% sequentially and nearly 550% year-over-year, indicating strong business expansion despite the earnings shortfall.
Future Outlook and Expansion Plans: Analysts remain cautiously optimistic about Nebius's future, highlighting aggressive expansion plans, including a new data center in France, which is expected to bolster long-term growth.
Market Sentiment and Investment Recommendations: Market reactions were mixed post-earnings, with some analysts raising price targets and suggesting that Nebius stock may continue to face challenges until new catalysts emerge.
See More
Nebius Group Exceeds Revenue Expectations
- Revenue Growth Exceeds Expectations: Nebius Group's annual revenue run rate target of $1.1 billion for the end of 2025 was surpassed, achieving $1.25 billion, showcasing the company's strong performance in the AI cloud infrastructure sector and solidifying its market position.
- Optimistic Future Outlook: The company anticipates a sevenfold increase in its revenue run rate for 2026, reflecting confidence in market demand, particularly amid surging needs for AI computing capacity, which may attract more investor interest.
- Data Center Expansion Plans: Nebius plans to achieve over 3 gigawatts of contracted compute capacity by the end of 2026, exceeding prior guidance, indicating robust demand for AI computing capabilities that could drive future revenue growth.
- Positive Market Reaction: Despite Nebius's stock price having tripled last year, it still rose by 8.2% today, demonstrating investor confidence in the company's growth potential, with a market capitalization of approximately $25 billion.
See More
