Nebius Group is poised for significant growth in 2026, positioning itself as a noteworthy player in the artificial intelligence sector. While the market is flooded with hype surrounding various AI ventures, Nebius stands out by offering a compelling investment opportunity as it is currently trading at a considerable discount.
Nebius operates a business model akin to cloud computing, a strategy led by major tech companies over a decade ago. The company owns and leases space in data centers equipped with advanced Nvidia graphics processing units (GPUs). Nebius then provides clients with the necessary infrastructure to train and execute their AI models, ensuring a comprehensive service offering that eliminates the need for clients to seek additional resources.
As of now, Nebius has seen its stock price rise by 16.64%, trading at $12.29, with a market capitalization of approximately $22 billion. The company’s stock may appear overvalued when measured at 60 times its current sales; however, this valuation relies on trailing revenue figures. Analysts project that by the end of 2026, Nebius will achieve an annual revenue run rate ranging from $7 billion to $9 billion—a staggering increase from the $551 million run rate reported at the end of the third quarter of 2025.
With this potential for explosive growth, Nebius is trading at less than seven times its projected sales, presenting it as an attractive bargain for savvy investors. However, it is important to note that the company is currently operating at a loss as it invests heavily in expanding its AI computing capabilities. While this strategy is aimed at harnessing substantial market opportunities, profitability will be crucial for gaining greater favor in the market long-term.
Despite the current challenges, the trajectory of Nebius suggests that, as it matures and follows the path established by other cloud computing firms, it could achieve a healthy operating margin. Analysts believe that the recognition of Nebius’s potential will inevitably lead to a surge in its stock price, marking it as a promising investment for the future.