Nebius Group's Cloud Computing Business Rapid Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Staggering Growth Rate: Nebius Group reported a jaw-dropping 684% growth rate in Q1 2023, indicating strong demand for its cloud computing services tailored for AI workloads, showcasing the company's market potential during rapid expansion.
- Data Center Expansion: By the end of 2025, Nebius increased its high-power data center count from one to seven, demonstrating its proactive approach in building and acquiring data centers to meet the surging demand for cloud computing, thereby solidifying its market position.
- Surging Revenue Projections: Nebius anticipates its annual revenue will soar from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026, reflecting immense potential in the cloud computing market and confidence in future growth.
- Investment and Risks: Despite a 135% stock price increase in 2026, Nebius is not yet profitable and is financing its expansion through debt and equity, which may dampen long-term returns; however, if it achieves over 2000% revenue growth, it remains a compelling investment opportunity.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to fall
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 222.240
Low
130.00
Averages
164.20
High
211.00
Current: 222.240
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 Rapidly Expands Data Center Footprint
- Staggering Growth Rate: Nebius reported a jaw-dropping 684% growth rate in Q1 2023, indicating strong demand in the cloud computing sector, particularly for AI workloads, showcasing its immense market potential.
- Data Center Expansion: By the end of 2025, Nebius plans to increase its data center count from one to seven, each utilizing over 100 megawatts of power, significantly enhancing its processing capabilities to meet the surging demand for cloud computing.
- Surging Revenue Projections: Nebius anticipates its annual revenue will soar from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026, reflecting robust growth potential in the cloud computing market, despite currently not being profitable.
- Investor Attention: Although Nebius is not yet profitable and faces debt challenges, its stock has surged 135% in 2026, with Wall Street analysts projecting a 551% revenue growth in 2026, indicating strong market confidence in its future development.
See More
Nebius Group's Cloud Computing Business Rapid Growth
- Staggering Growth Rate: Nebius Group reported a jaw-dropping 684% growth rate in Q1 2023, indicating strong demand for its cloud computing services tailored for AI workloads, showcasing the company's market potential during rapid expansion.
- Data Center Expansion: By the end of 2025, Nebius increased its high-power data center count from one to seven, demonstrating its proactive approach in building and acquiring data centers to meet the surging demand for cloud computing, thereby solidifying its market position.
- Surging Revenue Projections: Nebius anticipates its annual revenue will soar from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026, reflecting immense potential in the cloud computing market and confidence in future growth.
- Investment and Risks: Despite a 135% stock price increase in 2026, Nebius is not yet profitable and is financing its expansion through debt and equity, which may dampen long-term returns; however, if it achieves over 2000% revenue growth, it remains a compelling investment opportunity.
See More
Nebius Group Reports 684% Revenue Growth, Future Growth Ahead
- Staggering Growth Rate: Nebius Group reported a jaw-dropping 684% revenue growth in Q1 2023, driven not by acquisitions but by rapid data center expansion to meet massive cloud computing demand, highlighting its strong market position in AI.
- Data Center Expansion: By the end of 2025, Nebius plans to increase its data centers from one to seven, each utilizing over 100 megawatts of power, significantly enhancing its processing capabilities to accommodate the growing AI workload demands.
- Future Revenue Projections: Nebius anticipates its annual revenue will soar from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026, indicating immense potential and growth prospects in the cloud computing market, with expected revenue growth rates of 551% in 2026 and 224% in 2027.
- Funding Strategy: Although Nebius is not yet profitable, it is actively seeking funding through debt, stock issuance, and outside investors to support its growth; this strategy may dampen long-term returns, but achieving over 2,000% growth could still make it a compelling investment opportunity.
See More
Investment Outlook for Cloud Computing Companies
- Cloud Market Status: Amazon's AWS dominates the global cloud infrastructure, contributing 59% of operating income in Q1 with a 28% year-over-year revenue growth, showcasing its strong performance in the AI trend.
- Microsoft vs. Google Cloud: Microsoft's Azure boasts a 40% growth rate, while Google Cloud leads with 63% growth, aided by its proprietary Tensor Processing Units (TPUs), which have helped Google catch up in AI infrastructure development.
- Emerging Cloud Companies: CoreWeave and Nebius, as neocloud companies, achieved year-over-year revenue growth of 112% and 684%, respectively, attracting major clients like Microsoft and Meta, indicating strong growth potential in AI computing demand.
- Future Growth Expectations: Analysts project CoreWeave's revenue growth rates of 147% and 97% for 2026 and 2027, while Nebius is expected to grow even faster at 551% and 224%, respectively; despite not being profitable yet, their rapid expansion potential has garnered significant market interest.
See More
Comparison of Growth Between Cloud Giants and Newcomers
- Cloud Market Growth: Amazon Web Services (AWS) accounted for 59% of Amazon's operating income in Q1, with a revenue growth rate of 28%, marking its fastest expansion in nearly four years, indicating strong potential for cloud computing as a profitable business.
- Microsoft and Google Performance: Microsoft Azure reported a growth rate of 40% in its latest quarter, while Google Cloud led with an impressive 63% growth, aided by its proprietary Tensor Processing Units (TPUs), allowing Google to rapidly catch up in AI infrastructure development.
- Emerging Companies' Rapid Expansion: CoreWeave and Nebius saw revenue growth of 112% and 684% year-over-year, respectively, with projections of 147% and 97% revenue growth for 2026 and 2027, highlighting significant market demand in the AI cloud computing sector.
- Investment Risks and Opportunities: Although CoreWeave and Nebius are still operating at a loss, their rapid growth and future profitability potential have garnered significant attention from Wall Street, prompting investors to weigh the risks against the potential for long-term returns.
See More
Investment Outlook for Cloud Computing Companies
- Cloud Market Growth: AWS accounted for 59% of Amazon's operating income in Q1 2023, with revenue growing at a 28% rate, demonstrating the robust performance of its cloud business and solidifying Amazon's market leadership.
- Strong Microsoft Azure Performance: Although Microsoft does not disclose specific profitability figures, Azure's growth rate reached 40% in the latest quarter, indicating ongoing expansion and profit potential in the cloud computing sector, boosting investor confidence in its future.
- Emerging Competitors Rising: CoreWeave and Nebius achieved revenue growth of 112% and 684% respectively in Q1 2023, showcasing rapid development in the AI cloud computing market and attracting major clients like Microsoft and Meta, despite not being profitable yet, indicating significant future potential.
- Wall Street's Optimistic Outlook: Analysts expect CoreWeave's revenue growth rates to reach 147% and 97% in 2026 and 2027 respectively, while Nebius is projected to grow even faster with estimates of 551% in 2026, reflecting strong market confidence in the future of these companies.
See More
Nebius Rapidly Expands Data Center Footprint
- Staggering Growth Rate: Nebius reported a jaw-dropping 684% growth rate in Q1 2023, indicating strong demand in the cloud computing sector, particularly for AI workloads, showcasing its immense market potential.
- Data Center Expansion: By the end of 2025, Nebius plans to increase its data center count from one to seven, each utilizing over 100 megawatts of power, significantly enhancing its processing capabilities to meet the surging demand for cloud computing.
- Surging Revenue Projections: Nebius anticipates its annual revenue will soar from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026, reflecting robust growth potential in the cloud computing market, despite currently not being profitable.
- Investor Attention: Although Nebius is not yet profitable and faces debt challenges, its stock has surged 135% in 2026, with Wall Street analysts projecting a 551% revenue growth in 2026, indicating strong market confidence in its future development.
See More
Nebius Group's Cloud Computing Business Rapid Growth
- Staggering Growth Rate: Nebius Group reported a jaw-dropping 684% growth rate in Q1 2023, indicating strong demand for its cloud computing services tailored for AI workloads, showcasing the company's market potential during rapid expansion.
- Data Center Expansion: By the end of 2025, Nebius increased its high-power data center count from one to seven, demonstrating its proactive approach in building and acquiring data centers to meet the surging demand for cloud computing, thereby solidifying its market position.
- Surging Revenue Projections: Nebius anticipates its annual revenue will soar from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026, reflecting immense potential in the cloud computing market and confidence in future growth.
- Investment and Risks: Despite a 135% stock price increase in 2026, Nebius is not yet profitable and is financing its expansion through debt and equity, which may dampen long-term returns; however, if it achieves over 2000% revenue growth, it remains a compelling investment opportunity.
See More
Nebius Group Reports 684% Revenue Growth, Future Growth Ahead
- Staggering Growth Rate: Nebius Group reported a jaw-dropping 684% revenue growth in Q1 2023, driven not by acquisitions but by rapid data center expansion to meet massive cloud computing demand, highlighting its strong market position in AI.
- Data Center Expansion: By the end of 2025, Nebius plans to increase its data centers from one to seven, each utilizing over 100 megawatts of power, significantly enhancing its processing capabilities to accommodate the growing AI workload demands.
- Future Revenue Projections: Nebius anticipates its annual revenue will soar from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026, indicating immense potential and growth prospects in the cloud computing market, with expected revenue growth rates of 551% in 2026 and 224% in 2027.
- Funding Strategy: Although Nebius is not yet profitable, it is actively seeking funding through debt, stock issuance, and outside investors to support its growth; this strategy may dampen long-term returns, but achieving over 2,000% growth could still make it a compelling investment opportunity.
See More
Investment Outlook for Cloud Computing Companies
- Cloud Market Status: Amazon's AWS dominates the global cloud infrastructure, contributing 59% of operating income in Q1 with a 28% year-over-year revenue growth, showcasing its strong performance in the AI trend.
- Microsoft vs. Google Cloud: Microsoft's Azure boasts a 40% growth rate, while Google Cloud leads with 63% growth, aided by its proprietary Tensor Processing Units (TPUs), which have helped Google catch up in AI infrastructure development.
- Emerging Cloud Companies: CoreWeave and Nebius, as neocloud companies, achieved year-over-year revenue growth of 112% and 684%, respectively, attracting major clients like Microsoft and Meta, indicating strong growth potential in AI computing demand.
- Future Growth Expectations: Analysts project CoreWeave's revenue growth rates of 147% and 97% for 2026 and 2027, while Nebius is expected to grow even faster at 551% and 224%, respectively; despite not being profitable yet, their rapid expansion potential has garnered significant market interest.
See More
Comparison of Growth Between Cloud Giants and Newcomers
- Cloud Market Growth: Amazon Web Services (AWS) accounted for 59% of Amazon's operating income in Q1, with a revenue growth rate of 28%, marking its fastest expansion in nearly four years, indicating strong potential for cloud computing as a profitable business.
- Microsoft and Google Performance: Microsoft Azure reported a growth rate of 40% in its latest quarter, while Google Cloud led with an impressive 63% growth, aided by its proprietary Tensor Processing Units (TPUs), allowing Google to rapidly catch up in AI infrastructure development.
- Emerging Companies' Rapid Expansion: CoreWeave and Nebius saw revenue growth of 112% and 684% year-over-year, respectively, with projections of 147% and 97% revenue growth for 2026 and 2027, highlighting significant market demand in the AI cloud computing sector.
- Investment Risks and Opportunities: Although CoreWeave and Nebius are still operating at a loss, their rapid growth and future profitability potential have garnered significant attention from Wall Street, prompting investors to weigh the risks against the potential for long-term returns.
See More
Investment Outlook for Cloud Computing Companies
- Cloud Market Growth: AWS accounted for 59% of Amazon's operating income in Q1 2023, with revenue growing at a 28% rate, demonstrating the robust performance of its cloud business and solidifying Amazon's market leadership.
- Strong Microsoft Azure Performance: Although Microsoft does not disclose specific profitability figures, Azure's growth rate reached 40% in the latest quarter, indicating ongoing expansion and profit potential in the cloud computing sector, boosting investor confidence in its future.
- Emerging Competitors Rising: CoreWeave and Nebius achieved revenue growth of 112% and 684% respectively in Q1 2023, showcasing rapid development in the AI cloud computing market and attracting major clients like Microsoft and Meta, despite not being profitable yet, indicating significant future potential.
- Wall Street's Optimistic Outlook: Analysts expect CoreWeave's revenue growth rates to reach 147% and 97% in 2026 and 2027 respectively, while Nebius is projected to grow even faster with estimates of 551% in 2026, reflecting strong market confidence in the future of these companies.
See More
