Nebius Stock Surges 223% YTD Amid AI Demand but Faces Pullback Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Stock Surge: Nebius's stock has surged 223% year-to-date in 2025, driven by skyrocketing demand for AI data center infrastructure, although it has recently pulled back about a third of its value, raising concerns about sustainable growth.
- Significant Revenue Growth: In the first nine months of 2025, Nebius's revenue skyrocketed by 437% to $302 million, and despite facing $4.6 billion in debt, it is expected to maintain growth momentum through its $20 billion backlog.
- Expansion Plans: Nebius aims to increase its data center power capacity from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of next year, which is expected to significantly convert its backlog into revenue, although constructing a 1 GW data center could cost up to $10 billion.
- Financing Challenges: To support its expansion, Nebius plans to utilize corporate debt, asset-backed financing, and equity, which may lead to shareholder dilution while increasing debt load and interest expenses, potentially putting downward pressure on its stock price.
NBIS
$90.91+Infinity%1D
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.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 90.030
Low
130.00
Averages
164.20
High
211.00
Current: 90.030
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.
