Nebius Stock Has Soared & Momentum Story Isn’t Finished Yet

Nebius Group has become one of Wall Street’s most explosive AI infrastructure stories.

The company has carved out a valuable niche. It isn’t just selling hardware or renting generic cloud space. Nebius sits right at the bottleneck of the AI boom, the part of the stack where demand vastly exceeds supply. That positioning has turned the company into one of the most compelling growth stories in the market.

With AI infrastructure spending accelerating, investors want to know whether Nebius’ run can continue. The company’s latest numbers suggest the rally still has room.

Key Points

• Nebius is winning in the most constrained part of the AI stack — GPU-heavy data centers, driving explosive revenue growth and rising demand.

• Huge contracts with Meta and Microsoft have created a $20B+ backlog and pushed Nebius to scale capacity toward 1 GW, setting up a potential sixfold revenue jump in 2026.

• Even with a high valuation, Nebius’ forward multiples drop sharply as revenue ramps, leaving meaningful upside amid persistent GPU shortages and sticky inference demand.

Nebius’ Business Is Built for the Next Wave of AI Demand

Most investors know Nebius rents GPU clusters, but few realize how far up the stack it has moved. The company now runs advanced Nvidia, AMD, and Intel systems supported by a full software layer for data management, training, fine-tuning, orchestration, and low-latency inference. That makes Nebius a true full-stack AI platform, not a simple compute provider. Once customers build their pipelines on Nebius, switching becomes costly and risky, creating sticky, recurring demand.

This advantage is amplified by the industry backdrop. Hyperscalers remain short on GPUs despite tens of billions in contracted AI demand they still can’t fulfill, a shortage that could last up to 2 years.

The results are showing up in Nebius’ numbers. Revenue surged over 5x this year, losses narrowed sharply, and full-year revenue is expected to jump almost 4x. Management sees this accelerating, it projects as high as $9 billion in annualized run-rate revenue by the end of 2026, implying December sales alone could exceed all of 2025.

Those targets are backed by $20 billion-plus in long-term contracts from Meta and Microsoft. To deliver on them, Nebius is expanding its data-center power to as much as 1 GW in 2026, a build-out on hyperscaler scale.

The #1 Concern Investors Keep Raising

The obvious pushback against Nebius is valuation. If Nebius generates the expected $3.3 billion in 2026 revenue, roughly aligned with high-growth cloud and software peers, its market cap would reach approximately north of $30 billion.

But Nebius has distinctive advantages that could justify a premium well beyond sector averages. Its backlog exceeds $20 billion. GPU scarcity persists. And inference workloads, once deployed, tend to create long-duration, high-frequency compute demand that naturally expands over time. These dynamics give Nebius a rare visibility into future revenue, making it more likely to surprise to the upside than the downside.

The Bottom Line

Nebius is building critical infrastructure for an industry where supply is constrained, demand is compounding, and hyperscalers are years away from meeting their own backlog commitments.

With revenue accelerating, losses narrowing, capacity expanding, and cornerstone customers like Meta and Microsoft locked into long-term deals, Nebius appears early in a multiyear growth phase.

Yes, the stock may be volatile, high-growth, high-multiple names always are. But based on the backlog, the capacity expansion, and the structural GPU shortfall, Nebius still looks positioned to climb higher over the next year.

For investors looking for exposure to one of the most scarce and valuable parts of the AI stack, Nebius remains a powerful story with significant runway ahead.