NBIS Stock — Shares of Nebius Group N.V. (NASDAQ: NBIS) have surged 57.3% over the past month, fueled by accelerating demand for AI cloud infrastructure and a $1 billion capital injection via convertible notes.
The stock, now trading at $39.39, remains 22.6% below its 52-week high, prompting investors to evaluate whether the rally has room to run — or if it’s time to book profits.
AI-Fueled Revenue Growth Propels Investor Optimism
Nebius’ meteoric rise is backed by eye-catching financials. The company reported 385% year-over-year revenue growth in Q1 2025, while its annualized run-rate revenue (ARR) jumped an astonishing 700%. ARR for April alone stood at $310 million, setting the tone for a strong Q2.
The company has reiterated full-year ARR guidance of $750 million to $1 billion, with overall revenue projected between $500 million and $700 million.
Strategic Partnerships and AI Upgrades Bolster Long-Term Potential
Nebius is aggressively expanding its AI infrastructure, making key improvements to its Slurm-based cluster, reducing downtime, and upgrading object storage for faster model training.
The company also moved popular AI services like MLflow and JupyterLab from beta to full release, while deepening integrations with platforms like Metaflow, D Stack, and SkyPilot.
A strategic alliance with NVIDIA (NASDAQ: NVDA) adds further credibility. Nebius will be an early provider of NVIDIA’s Blackwell Ultra AI Factory Platform and support the DGX Cloud Lepton marketplace at launch — boosting visibility among enterprise clients.
Global Reach Expands with New Data Centers and C-Suite Talent
To support global AI workloads, Nebius added new data center regions across the U.S., Europe, and the Middle East, including a key facility in Israel. The company also appointed Marc Boroditsky as Chief Revenue Officer, a move seen as crucial for scaling operations.
Beyond Cloud: Diversification into EdTech, Autonomous Vehicles, and More
Nebius owns significant stakes in other high-growth ventures like Toloka, an AI training platform backed by Amazon’s Jeff Bezos and Shopify’s Mikhail Parakhin, and Avride, its autonomous vehicle platform partnered with Uber, Hyundai, GrubHub, and Rakuten. NBIS also holds a 28% stake in ClickHouse, currently valued at $6 billion.
Risks Remain: Profitability and Competition a Drag
Despite its massive top-line momentum, Nebius is not yet profitable, with adjusted EBITDA expected to stay negative until the latter half of 2025. The company has also increased its 2025 capex forecast to $2 billion, up from $1.5 billion, which could weigh on margins if revenue fails to keep pace.
Competition remains fierce. Giants like Amazon Web Services (AWS) and Microsoft Azure dominate the AI cloud market. Microsoft’s exclusive access to OpenAI models like GPT-4 Turbo also puts pressure on newcomers like Nebius to differentiate quickly.
Analyst Ratings and Outlook
Despite these risks, analysts remain bullish. Arete analyst Andrew Beale recently initiated coverage with a Buy rating and an $84 price target, citing Nebius’ AI innovation and expanding global footprint.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should consult with a licensed financial advisor before making any investment decisions.