Artificial intelligence (AI) infrastructure is becoming one of the most lucrative battlegrounds in tech, and a new deal between NVIDIA Corporation (NVDA) and Nebius Group N.V. (NBIS) has suddenly pushed the smaller cloud player into the spotlight. NVIDIA recently announced a $2 billion investment in Nebius, deepening a strategic partnership aimed at building large-scale AI cloud infrastructure and data centers designed to power the next wave of AI applications.
The move instantly caught investors’ attention, sending Nebius Group shares sharply higher as the market interpreted the investment as a powerful vote of confidence from the world’s leading AI chipmaker. The partnership will give Nebius early access to Nvidia’s next-generation computing platforms and help the company deploy more than 5 gigawatts of AI computing capacity by 2030, positioning it as a key “neocloud” provider for AI startups and enterprise clients. Also, Nebius will adopt several Nvidia platforms, including Rubin, Vera CPUs, and BlueField storage systems.
But while Nvidia’s endorsement highlights Nebius’s rising role in the AI infrastructure boom, does this deal make the stock a compelling long-term buy?
About Nebius Group Stock
Nebius Group is a Dutch technology company focused on building AI infrastructure and cloud computing platforms for AI developers and enterprises. Headquartered in Amsterdam, Netherlands, the company provides high-performance AI cloud services and operates several technology businesses. Those include autonomous driving developer Avride, edtech platform TripleTen, and data-labeling platform Toloka. It also holds a stake in analytics database company ClickHouse. Its market cap stands at $28.2 billion.
Shares of Nebius Group have delivered extraordinary gains over the past year, reflecting strong investor enthusiasm for AI infrastructure providers. Over the past 52 weeks, NBIS stock has surged dramatically, climbing around 282% as investors increasingly bet on companies building the data center capacity needed to support generative AI workloads.
In 2026, the stock maintained the momentum with overall year-to-date (YTD) gains of 29.56%. The most recent catalyst came after Nvidia announced a $2 billion investment and strategic partnership with Nebius, aimed at building next-generation AI cloud infrastructure. Following the announcement, NBIS shares jumped, with intraday gains as much as 16.1% on March 11.
The stock is currently trading at 45.83 times sales, a premium compared to the industry peers.
Robust Top Line While Bottom Line Remains Pressured
Nebius Group released its fourth-quarter and full-year 2025 financial results on Feb. 12, reporting explosive revenue growth as demand for AI infrastructure surged, though profitability remained pressured.
For Q4 ended Dec. 31, 2025, the company generated revenue of $227.7 million, a sharp 547% year-over-year (YOY) increase from $35.2 million in Q4 2024. The strong top line growth was driven primarily by the rapid expansion of its AI cloud infrastructure business and rising demand for high-performance computing from AI developers and enterprises.
Also, the company delivered positive adjusted EBITDA of $15 million, compared with an adjusted EBITDA loss of $63.9 million in the prior-year quarter. However, Nebius continued to post significant losses due to aggressive capital investment, reporting a net loss of $249.6 million, wider than the $122.9 million loss recorded a year earlier.
For the full year 2025, Nebius reported revenue of $529.8 million, representing a 479% YOY increase from $91.5 million in 2024, underscoring the rapid scaling of its AI infrastructure platform. While the company remained unprofitable, its adjusted EBITDA loss narrowed to $64.9 million from $226.3 million in 2024. Meanwhile, adjusted net loss widened to $446.7 million from $238.5 million in the previous year.
Nebius ended 2025 with an annualized revenue run-rate of about $1.3 billion and expects that figure to grow rapidly as more infrastructure comes online. Moreover, the company has projected annualized run-rate revenue of roughly $7 billion to $9 billion by the end of 2026, reflecting strong demand from hyperscalers and AI developers seeking access to Nvidia-powered computing infrastructure.
Notably, the consensus loss per share estimate of $2.44 for fiscal 2026 indicates a deterioration of 37.9% YOY, before improving by around 99.6% annually to $0.01 in fiscal 2027.
What Do Analysts Expect for Nebius Stock?
Most recently, Compass Point reiterated a “Buy” rating on Nebius Group with a $150 price target after the company expanded its partnership with Nvidia.
Also, last month, Freedom Capital Markets initiated coverage on Nebius Group with a “Buy” rating and a $108 price target.
NBIS has a consensus “Moderate Buy” rating overall. Out of 11 analysts covering the stock, seven recommend a “Strong Buy,” one gives a “Moderate Buy,” and three analysts stay cautious with a “Hold” rating.
While the average analyst price target of $153.88 suggests an upside of 42.43%, its Street-high target price of $232 suggests as much as 114.7% upside ahead.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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