Nebius Group (NBIS), a Netherlands-based technology company specializing in full-stack infrastructure for the global AI industry, has seen its stock rise 66% this year. This surge reflects growing investor interest in Nebius as a compelling infrastructure play amid the broader AI boom.
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While much of the market’s attention is focused on companies developing AI models, Nebius offers high-performance computing solutions that are in increasingly high demand among AI developers. This positions the company as a way for investors to gain indirect, yet meaningful, exposure to the AI sector.
I’m Bullish on Nebius despite the competitive landscape, thanks to its technological advantage, differentiated product offerings, and innovative funding strategy.
NBIS’ Differentiated Toolkit Offers Competitive Advantage
One of the key drivers behind my bullish outlook on Nebius Group is its vertical integration, which enables the company to deliver a comprehensive AI ecosystem to its clients. To offer end-to-end AI infrastructure solutions, Nebius operates its own data centers in Finland, alongside highly scalable facilities in key global locations such as New Jersey. The company also designs its own energy-efficient hardware in-house, ensuring greater control over performance and efficiency.
In addition, Nebius is well-positioned for accelerated growth through access to high-performance computing resources, including approximately 30,000 GPUs—primarily Nvidia H200 chips.
The company further differentiates itself with its proprietary software platform, Nebius AI Cloud. This platform delivers a robust suite of tools for developers, featuring Infrastructure-as-a-Service (IaaS) offerings like Managed Kubernetes, Platform-as-a-Service (PaaS) capabilities including large language models, and Inference-as-a-Service (IaaS) options that enable streamlined access to open-source AI models.
Key Industry Partnerships and Balance Sheet Strength Drive Growth
Beyond its differentiated product suite, I’m also encouraged by the strategic partnerships Nebius has established to support its long-term growth. Notably, the company has formed a key alliance with Nvidia Corporation (NVDA). Nebius is one of just six companies globally recognized as a Reference Platform Nvidia Cloud Partner and is well-positioned to be among the first AI cloud providers to offer Blackwell Ultra AI to developers. Additionally, it has collaborated with several leading storage providers to further enhance its infrastructure capabilities.

While these partnerships add significant value, investors should also closely monitor Nebius’s liquidity position as a critical factor in its ability to compete and scale in a highly competitive market.
Strengthening the balance sheet has been a clear focus for the company in recent years. As of the end of the first quarter, Nebius reported $1.48 billion in cash and no long-term debt—a significant advantage as it goes head-to-head with established tech giants in the cloud AI space. In this capital-intensive race, a strong financial foundation isn’t just a strategic asset—it’s a requirement.
Nebius Offers Hidden Value Through Equity Investments
While Nebius’s core AI infrastructure business is compelling on its own, the company also offers additional upside through strategic equity investments in high-potential businesses. Currently, Nebius holds a significant 28% stake in ClickHouse, a leading provider of column-oriented database management systems that competes with industry leaders such as Snowflake Inc. (SNOW) and MongoDB Inc. (MDB). As of Q1, ClickHouse is estimated to be valued at around $6 billion, placing the value of Nebius’s stake at approximately $1.7 billion.
In addition, Nebius maintains an equity position in Toloka, an AI data solutions provider that counts major tech firms such as Amazon.com, Inc. (AMZN) and Microsoft Corporation (MSFT) among its clients.
Highlighting the strategic importance of these investments, CEO Arkady Volozh noted in his Q1 shareholder letter that Nebius plans to partially fund its future growth by monetizing these holdings when appropriate. This gives the company a distinct advantage: few AI infrastructure providers have immediate access to billions of dollars in non-core investments that can be leveraged to support expansion and innovation.
Is NBIS a Good Stock to Buy?
Nebius has attracted a few Wall Street analysts in the past few months, which does not come as a surprise given the stellar growth it reported for Q1. Based on the ratings of four Wall Street analysts, the average stock price target for NBIS is $66.50, which implies an upside potential of 44% from the current market price.

Moreover, around a month ago, DA Davidson analyst Alex Platt raised his Nebius price target to $55 from $50 after digesting Q1 results and the announcement of a $1 billion convertible note placement. The analyst praised Nebius’s capacity to scale efficiently and also the valuable role played by its non-core investments. BWS Financial also raised its Nebius price target in June, from $60 to $80, citing the new opportunities arising from the company’s data center expansions.
Nebius is certainly not undervalued in the market, with a forward P/S multiple of 22. However, the company is growing at a stellar pace. It is likely to experience above-average growth in the foreseeable future, as the AI infrastructure market still has considerable room for growth.
The broadening adoption of AI across business sectors will be a massive growth driver for the AI infrastructure market, and I believe Nebius’s differentiated, vertically integrated product suite will continue to be in high demand for an extended period.
Strategic Positioning Opens Path to Long-Term AI Growth
Nebius Group, a leading AI infrastructure provider, is benefiting from multiple growth tailwinds. With a strong balance sheet and well-placed strategic investments, the company appears well-equipped to fund its expansion amid rising industry competition. While the stock trades at a premium, I remain Bullish on Nebius, confident in its long-term growth potential and ability to capitalize on the accelerating demand for AI infrastructure.