Key Points
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Nebius saw a remarkable revenue increase of 625% year-on-year, reaching $105 million in the second quarter, with its core business hitting positive adjusted EBITDA ahead of schedule.
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Oracle’s Projects Cloud Infrastructure is on track to generate $144 billion by 2030, supported by $455 billion in committed contracts.
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Both companies are positioning themselves in essential AI infrastructure transactions, despite trading at lower valuations compared to dedicated AI leaders.
Growth stocks are thriving in 2025. This surge is partly due to the deregulation of Artificial Intelligence (AI) and anticipated changes in speed. In this landscape, Nvidia is often recognized as a leader, while savvy investors are keen on companies that are building the foundational layers of AI.
In 2025, Nebius has risen by 232%, while Oracle has seen an 89% yearly increase (as of September 11, 2025), positioning both as strong contenders in the market.
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Nebius Group: An Underrated AI Powerhouse
Nebius Group might just be one of the most overlooked stories in the AI market. Based in Amsterdam, this company is developing comprehensive infrastructure for AI workloads. The second-quarter results for 2025 revealed a 625% revenue increase year-on-year, hitting $105.1 million—more than double from the previous quarter. Plus, they’ve achieved positive adjusted EBITDA a few months ahead of expectations.
What’s striking is not just the growth rate but the overall trajectory. Management plans to raise its 2025 revenue guidance from $900 million to $1.1 billion, setting the stage for an annual recurring revenue near the $1 billion mark.
As AI demands soar, Nebius is actively working to expand its power capacity to over 1 gigawatt by the end of 2026. Currently, their assets are valued at nearly $1.8 billion, and they are also increasing their debt by almost $1 billion.
Recently, Nebius secured a significant AI infrastructure deal with Microsoft, estimated at $17.4 billion, which will likely bring more momentum for shareholders. Despite their impressive stock performance, Nebius continues to trade at a considerable discount compared to pure-play AI companies.
Oracle’s Transformation into AI Infrastructure Giant
Oracle has transitioned from being primarily a database company to a serious player in AI infrastructure. Their strategy includes a versatile multi-cloud approach, making it hard for competitors to match. Forecasts suggest their cloud infrastructure revenue will reach $18 billion in fiscal year 2026—a 77% increase from previous numbers—leading to an overall target of $144 billion by 2030.
This growth is backed by substantial commitments; Oracle’s remaining performance obligations surged 359% year-on-year to $455 million, bolstered further by multi-billion-dollar contracts with OpenAI and Meta.
Unlike competitors like Amazon and Microsoft, Oracle’s multi-cloud approach combines its rivals as distribution channels, demonstrated by a staggering 1,529% increase in database revenue over the past year. The company is investing $35 billion in capital expenditures for 2026, rapidly establishing the AI-ready infrastructure consumers are eagerly anticipating.
Evaluating Risk vs. Reward
Bearing in mind that both stocks do come with risks, Nebius still hasn’t reached profitability under generally accepted accounting principles, reporting an adjusted net loss of $901.5 million in the second quarter even with positive EBITDA. Meanwhile, Oracle balances its stable database earnings against the costs of its AI build-outs, needing the growth climate to remain favorable.
However, the opportunities are significant. Investing in Nebius provides pure-play access to AI infrastructure at a fraction of the cost of established players. On the other hand, Oracle brings a safer option with its substantial commitments reported at $50 trillion.
For growth investors wanting AI involvement beyond semiconductors, Nebius and Oracle present appealing alternatives. Both have positioned themselves as essential providers in the AI landscape, regardless of which specific AI model eventually prevails.
Considering Investment in Nebius Group
It’s wise to think carefully before investing in Nebius Group stocks. The analysis from Motley Fool Stock Advisor has outlined various stocks they recommend, and Nebius isn’t currently among them. Their top ten choices may yield substantial returns over the next few years.
Reflecting on past recommendations, one can see similar successes; for instance, if you’d invested in Netflix or Nvidia at their inception, you’d have seen considerable growth in your investment.
Currently, Stock Advisor boasts an average return well above market performance, and it’s prudent to stay informed on their latest top picks.
Disclosure: The authors and Motley Fool hold recognized positions in several companies, including Microsoft and Nvidia.
