Nebius Group (NASDAQ: NBIS) has made a significant resurgence in the stock market, soaring over 500% since its return to the Nasdaq on October 21, 2024, after rebranding from its previous name, Yandex N.V. Currently, the stock has increased by 347% in 2025 alone, achieving all-time highs this October. This remarkable performance is fueled by the company’s strategic position in the burgeoning markets of artificial intelligence (AI) and cloud computing.
Originally known for its association with the Russian internet firm Yandex, Nebius has pivoted towards becoming a leading AI cloud platform. Following geopolitical tensions that led to sanctions against Russian enterprises, Yandex underwent a restructuring in 2023, shedding its Russian operations and emerging anew as Nebius. The company now offers a comprehensive full-stack AI cloud platform, equipped with thousands of Nvidia GPUs, making it an attractive choice for clients looking to develop AI solutions without the burden of heavy infrastructure investments.
The momentum behind Nebius is further underscored by its financial maneuvers. The company successfully raised $1.15 billion in a public offering in September, alongside an impressive $3.16 billion from senior convertible notes. Nebius has ambitious plans, including development projects across multiple locations like New Jersey, the U.K., Israel, and Finland, with a goal of securing 1 gigawatt of cloud computing capacity by next year.
Moreover, Nebius has entered a lucrative five-year agreement with Microsoft worth $19.4 billion to provide dedicated GPU capacity for Microsoft Azure, contributing to a 200% spike in its stock following the announcement. While the company has yet to achieve profitability, it reported a remarkable revenue of $105.1 million in the second quarter, marking a staggering 625% increase year-over-year. Notably, Nebius has already reached adjusted EBITDA profitability, indicating strong operational momentum.
There are speculations about a potential stock split for Nebius, which could make its shares more accessible to retail investors. However, industry experts believe that the company may not be ready for such a move until its stock price ascends significantly higher than the current level of approximately $125. Companies typically consider stock splits when share prices become prohibitively high for average investors. Comparatively, Nebius’s share price remains considerably lower than other major companies, such as AutoZone and Booking Holdings.
While analysts suggest caution for new investors, Nebius Group’s surge in the stock market, combined with its innovative business model in AI and a robust financial backing, positions the company favorably for future growth. As the technology landscape evolves, Nebius could very well be on track to become a significant player in the cloud computing and AI sectors, drawing interest from investors eager to capitalize on the next wave of technological advancement.