Stock (Symbol) |
Nebius (NBIS) |
Stock Price |
$113 |
Sector |
| Technology |
Data is as of |
| October 18 |
Expected to Report |
| October 29 |
Company Description |
 Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry.
The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride. Source: Refinitiv |
Sharek’s Take |
 Nebius (NBIS) stock has had a fantastic run higher as investors realize the value in this AI company. I just bought NBIS for clients back in July and the stock has already doubled in price as AI stocks have been hot. Nebius launched its AI Cloud V3 last qtr, introducing new infrastructure and software upgrades designed to improve performance and reliability. The updated platform focuses on faster processing, better scheduling efficiency, and greater flexibility for customers managing large-scale AI workloads. Built with AI-native architecture, it combines the power of infrastructure-as-a-Service (SaaS) with the speed of Platform-as-a-Service (PaaS), helping users scale complex applications easily. Nebius also got top results in MLPerf Training v5.0 tests, which measure how fast and efficiently AI systems can train models. The tests showed that Nebius doubled its speed when doubling computing power, which is a clear sign of how strong its system is. These upgrades are helping Nebius raise the bar for AI cloud performance and strengthen its position as a leader in advanced AI computing.
Nebius is a cloud company built for AI. The company gives developers and companies everything they need to build, train, and run AI models.This includes powerful servers, storage, tools, and applications. Everything is designed to be fast, efficient, and easy to scale. The company is based in the Netherlands with engineering hubs in Finland, Serbia, and Israel. NVIDIA has a partnership with Nebius, giving the company early access to its Blackwell GPUs. Nebius was the 1st company to offer Blackwell in Europe. The Nebius AI Cloud, launched in late 2024, uses NVIDIA GPUs and advanced networking to handle heavy AI workloads. It runs faster, uses less energy, and makes it easy to scale up or down. Developers can work through a user-friendly interface or API. Nebius AI Studio, launched in 2024, makes it easy to run AI models right away. It offers access to open-source models and helps teams build AI apps without needing large engineering teams. Nebius’s core platform includes five layers:
Other business segments:
Nebius is growing rapidly. The company did $118 million in revenue in 2024, and is expected to do $584 million this year, then $1.9 billion next year. The Estimated Long-Term Growth Rate (Est. LTG) of 82% is excellent. But the company isn’t making profits yet, so its tough to get a fair valuation on where the stock should be. NBIS is part of the Growth Portfolio and Aggressive Growth Portfolio. |
One Year Chart |
 NBIS stock followed through on last qtr’s cup-and-handle pattern, breaking out strongly and climbing from around $50 to above $125. The big move was September 9 when the stock soared from $64 to $96 after it announced a $17.4 billion to $19.4 billion to provide AI infrastructure to Microsoft, with the deal expected to run through 2031 (5 years?).
The Est. LTG is 82%, same as last qtr. Note that’s an expected profit growth rate. But there are no profits yet. There’s no P/E as the company is losing money. No profits along the bottom either. |
Earnings Table |
 Last qtr, NBIS reported profits of -$0.38 in Earnings Per Share (EPS). Revenue increased 625% year-over-year, beating the analyst estimates of 273%. Revenue was driven by the core AI infrastructure business and solid execution from Tripleten. Annualized run-rate increased 438% year over year.
Annual Profit Estimates increased this qtr. But these figures could be incorrect. Today, Refinitiv shows $-1.20 for 2025, $-0.29 for 2026 and -0.12 for 2027. Qtrly Profit Estimates are for no profits the next 4 qtrs. Analysts expect revenue of $155 million next qtr vs $43 million a year ago, +258% year-over-year growth. |
Fair Value |
 My Fair Value is 25x annual revenue estimates. The stock sells for 49x 2025 revenue estimates this qtr:
Current: 2025 Fair Value: 2026 Fair Value: |
Bottom Line |
 Nebius (NBIS) traces its roots back to Yandex, a Russian search engine that was delisted following Russia’s invasion of Ukraine. In 2024, Yandex sold its Russian assets, renamed itself Nebius, and resumed trading on the NASDAQ.
Nebius could become a big player in AI. But calculating what the stock should sell for is difficult. These Ai datacenters have lots of CapEx with tons of depreciation. It’s hard to guage what profits might be. NBIS moves from 4th to 2nd in the Growth Portfolio Power Rankings. NBIS is also part of the Aggressive Growth Portfolio and ranks 2nd in the Power Rankings. |
Power Rankings |
Growth Stock Portfolio
2 of 32Aggressive Growth Portfolio 2 of 14Conservative Stock Portfolio N/A |
