Amsterdam-based Nebius Group is making significant strides in the artificial intelligence (AI) sector as a comprehensive AI infrastructure provider. This year, the company’s stock has surged by an impressive 202%, although it has recently experienced a pullback. Nebius is projecting a remarkable revenue growth trajectory over the coming years, with the global AI market estimated to reach $3.5 trillion by 2033, showcasing a robust compound annual growth rate of 31.5%.
In the first nine months of 2025, Nebius reported a staggering 437% increase in revenue compared to the previous year, with third-quarter revenues soaring 355% higher to $146 million, despite falling short of Wall Street’s expectations. As of mid-November, Nebius’ stock price had declined more than 30% from its all-time high recorded in mid-October.
The company’s growth narrative remains strong, as Nebius specializes in constructing AI data centers equipped with high-performance Nvidia graphics processing units (GPUs); Nvidia itself has a stake in the firm. Recently, Nebius secured a substantial $3 billion agreement with Meta Platforms to provide AI infrastructure over a five-year period. Additionally, a multiyear collaboration with Microsoft worth up to $19.4 billion was signed in September. By the third quarter, Nebius had reported that its compute capacity was fully sold out.
Looking ahead, Nebraska anticipates achieving an annualized revenue run rate between $7 billion and $9 billion by the end of 2026, a figure that would represent a 6,700% increase from its 2024 revenues if the midpoint of $8 billion is reached for 2027. Despite incurring significant losses and plans to sell up to 25 million shares of common stock, which raises concerns about dilution, the long-term growth potential appears promising for investors willing to remain patient.
Nonetheless, potential investors should weigh their options, as notable analysts have recently listed 10 other stocks they believe are currently more favorable than Nebius Group. The Motley Fool’s Stock Advisor program has a record of identifying high-return stocks, highlighting cases such as Netflix and Nvidia, which achieved significant growth since their recommendations.
Investment in Nebius Group seems poised for a high-risk, high-reward scenario, especially as the demand for AI solutions continues to rise. The company’s prominent partnerships and ambitious financial projections paint a hopeful picture for its future in the rapidly evolving AI landscape.