Nebius Group and Its Potential in AI

Nebius Group stands out as one of the few AI hyperschools geared towards meeting the future infrastructure needs in AI.

Interestingly, its valuation seems quite low compared to other AI players like CoreWeave and Nvidia.

Even if Nebius doesn’t emerge as the leading growth story of this decade, it seems positioned as a key competitor.

When thinking about “artificial intelligence,” companies like Nvidia, OpenAI, or Google’s parent company Alphabet probably come to mind first. But I wonder if many think of Nebius Group. Despite that, maybe they should; this underestimated AI stock might just turn into one of the decade’s best success stories.

Nebius focuses mainly on its Cloud Platform for AI, while also operating two subsidiaries: Avride, which develops autonomous vehicle technology, and Tripleten, a leading educational technology provider. Additionally, Nebius has stakes in the open-source database platform Clickhouse and the AI data specialist Toloka.

Arkady Volozh, the founder and CEO, recently addressed shareholders, describing the current times as exciting. He stated that “we are on the brink of the next significant advancement in technology,” emphasizing the need for a completely new AI infrastructure. Volozh sees Nebius as among the few AI hyperschools capable of meeting this challenge.

To meet rising demand, Nebius is working rapidly to secure 1 gigawatt of electricity by 2026, which is critical for powering AI data centers.

This growth is costly, but Nebius is in a solid financial position with over $4 billion in capital, which allows for potential extra funding if needed.

So, is Nebius truly underrated? Many might argue yes.

The company’s stock price has increased notably over almost four years, outperforming Nvidia. Nebius also outshines competitors like CoreWeave, particularly in its growth trajectory.

Impressively, Nebius reported year-on-year revenue growth of 625% and 106% for the second quarter of 2025. While Nvidia and CoreWeave are doing well, neither can match Nebius’s remarkable speed.

Notably, Nebius has secured prominent clients, including CloudFlare and Shopify, and services many emerging AI companies like Heygen and Lightning.ai.

Yet, despite this growth, Nebius doesn’t enjoy the same recognition as its competitors. For instance, searches for Nebius yield fewer than 1.6 million results this year, while searches for CoreWeave are nearly double that. Nvidia far outpaces both, with around 119 million results.

Is Nebius one of the fastest-growing large-cap stocks of 2025? It seems likely.

The insatiable demand for AI infrastructure, as businesses rush to deploy and develop AI models, presents a significant opportunity. I share Volozh’s perspective that Nebius stands out as a likely winner in this field.

Let’s not forget about the potential growth from Avride and Tripleten. Especially, Avride’s opportunity to extend partnerships for delivering orders through autonomous robots could be game-changing.

As for Nebius’s valuation, it isn’t profitable yet, which complicates typical revenue-based metrics, but shares currently trade at 147 times their sales over the past year. While that might sound high, it’s less daunting considering that revenue has more than doubled since Q1.

I’m not boldly stating that Nebius will surely be the decade’s best growth story. However, I do see it as a strong competitor in the space.

So, it might be wise to consider before investing in Nebius Group.

Analysts from a prominent investment advisory have identified what they believe are the top ten stocks to consider now—curiously, Nebius didn’t make that list. The stocks that did make it have potential for significant returns in the coming years.

For potential investors, it’s a moment to reflect. If you’d put money into Netflix or Nvidia when they were recommended years ago, you’d be looking at substantial returns now.

This advisory claims an impressive average return of 1,062%, outpacing the S&P 500 by a wide margin. It’s worth keeping an eye on their top ten list.