Nebius Stock Soars Amidst Promising AI Market Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Revenue Surge: Nebius experienced a staggering 462% revenue growth in 2024, followed by another 437% increase in the first nine months of 2025, indicating robust demand for its AI infrastructure services, with analysts projecting a 373% revenue rise for the full year.
- Market Capitalization: With a market cap of $23 billion and a current stock price of $97.99, Nebius is valued at less than seven times this year's sales, reflecting a reasonable valuation that attracts investor interest in the rapidly growing AI market.
- Data Center Expansion Needs: Despite securing major contracts with Microsoft and Meta, Nebius operates only one first-party data center in Finland and relies on leased centers in various countries, necessitating significant spending to expand its data center network, which could lead to substantial losses in 2026 and 2027.
- Competitive Pressure: Nebius faces intense competition from other AI infrastructure providers, and its heavy reliance on Microsoft and Meta may limit its negotiating power in pricing discussions, potentially impacting its profitability in the future.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NBIS is 164.20 USD with a low forecast of 130.00 USD and a high forecast of 211.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 100.430
Low
130.00
Averages
164.20
High
211.00
Current: 100.430
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.
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