Investors are beginning to appreciate the growth plans of hyperscaler Nebius.
Nvidia is an investor in and partner to Nebius.
If Nebius achieves the revenue growth that management says it’s on track for, its stock should run higher.
10 stocks we like better than Nebius Group ›
The investing community is beginning to take notice of Nebius Group(NASDAQ: NBIS). I say that largely based on the almost 150% surge in its share price since mid-April. There’s a reason behind that, though. Nebius has been executing on its plan to grow its revenues to a level that would justify a valuation well above its current one.
The company, which went public in May 2011 under the name Yandex, was originally a Russian search engine company. The stock peaked in late 2021. It now trades as Amsterdam-based Nebius Group more than 40% off that previous high.
Nebius sprouted as the cloud computing arm of Russian e-services giant Yandex. It was formed after Yandex restructured and divested all of its Russian assets in July 2024. It resumed trading on the Nasdaq Stock Exchange under the Nebius name in late October 2024.
Image source: Getty Images.
The stock remains far below its Yandex-era highs since the post-transition business has yet to fully demonstrate its potential for growing revenue. But Nebius management is giving investors a good idea of how to value that expected growth. If its assessment proves accurate, Nebius stock would be a good buy at recent prices.
Nebius’ core business is cloud infrastructure. It’s one of a growing number of hyperscalers supplying the computing power needed in the age of artificial intelligence (AI).
Hyperscalers like Nebius have the massive amounts of data center infrastructure that it takes to supply cloud computing services on a global level. It competes with leading players like Amazon Web Services (AWS), Microsoft Azure, and Alphabet‘s Google Cloud.
While its cloud infrastructure and services segment is Nebius’ core business, the company has four business segments, all in specific areas of the AI ecosystem:
Nebius (cloud infrastructure): The core business, providing infrastructure from a network of data centers for AI workloads, including large-scale GPU clusters, cloud platforms, and developer tools.
Toloka: A data partner with a network of human specialists to test and evaluate large language models (LLMs) in generative AI development.
TripleTen: A technology platform focused on reskilling individuals for tech careers, leveraging AI-driven educational tools.
Avride: Developing autonomous driving technology for self-driving cars and delivery robots, targeting sectors like ride-hailing, logistics, e-commerce, and food delivery.
Nebius’ work in the AI ecosystem has attracted the attention of AI leader Nvidia. The chipmaker participated in a $700 million private funding round for Nebius late last year. Nvidia also owns more than 1 million shares of Nebius stock.
Nebius is leading the way in providing computing capacity from Nvidia’s GB200 Blackwell Superchips to European customers. The GB200 is a key component in the architecture of Nvidia CPU and GPU liquid-cooled server racks, including networking links for AI model inference.
Nebius’ partnership with Nvidia gives the cloud services company the ability to scale at a rate that management says will result in an annualized revenue run rate of between $750 million and $1 billion by the end of 2025. It also expects to reach positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) this year.
The upper end of that revenue run rate would give Nebius a price-to-sales (P/S) ratio of about 12.5, even after the stock’s recent surge. That appears to be a reasonable valuation for such a fast-growing tech company. By comparison, fellow cloud AI infrastructure provider CoreWeave sports a P/S ratio of about 15 based on this year’s revenue guidance.
Nebius may now be showing up on some tech investors’ radars, but it still isn’t being valued as richly as it could be. If Nebius does achieve the sales growth management says it’s on track to reach this year, the stock could have more room to run over both the short and long term.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Howard Smith has positions in Alphabet, Amazon, Microsoft, Nebius Group, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends Nasdaq and Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
This Home Run Growth Stock Is Too Good to Ignore was originally published by The Motley Fool
![Rep. Alexandria Ocasio-Cortez’s tough Bronx persona is under fresh scrutiny with a resurfaced childhood nickname from her suburban upstate New York upbringing casting doubt on that publicly portrayed image. The progressive champion’s latest spat with President Donald Trump over the Iran strikes again called into question her true upbringing when she declared on X she was a “Bronx girl” to make her a point against the president. The 35-year-old congresswoman wrote in part on X: “I’m a Bronx girl. You should know that we can eat Queens boys for breakfast. Respectfully,” she said, referring to the president’s upbringing in Queens as she called for his impeachment over his decision to bypass Congress in authorizing U.S. strikes on Iranian nuclear facilities. Ocasio-Cortez was born in the Bronx but moved to Yorktown – which is nearly an hour outside New York City — when she was 5 years old and went on to attend Yorktown High School where she graduated in 2007. She was considered an accomplished student there and well thought of by teacher Michael Blueglass, according to a 2018 report by local media outlet Halston Media News. “There, known by students and staff as ‘Sandy,’ she was a member of the Science Research Program taught by Michael Blueglass,” the report states. “She was amazing,” Blueglass said, per the report. “Aside from her winning one of the top spots and going to the [Intel International Science and Engineering Fair], she was just one of the most amazing presenters in all of the years I’ve been at Yorktown. Her ability to take complex information and explain it to all different levels of people was fantastic.” After high school, Ocasio-Cortez attended Boston University, where she majored in economics and international relations, per the report. Ocasio-Cortez’s “Sandy” nickname — which carries a more suburban and preppy tone — appears to undercut her politically crafted image as a tough, inner-city fighter, one she has portrayed since her famous 2018 congressional campaign where she eventually ousted former 10-terms Congressman Joe Crowley. New York GOP Assemblyman Matt Slater, who now represents Yorktown, added to the scrutiny of Ocasio-Cortez’s persona in the wake of her brash with Trump and released images of Ocasio-Cortez from his high school yearbook. He claimed he and the rising Democratic star attended Yorktown High School at the same time when she was a freshman and he was a senior. “I saw the attacks on the president and her [Ocasio-Cortez] claims that she’s a big, tough Bronx girl,” said Slater. “To sit there and say that she’s a Bronx girl is just patently ridiculous.” “Everybody in our community knows this is just a bold-face lie,” said Slater on “Fox & Friends First” last week. “She grew up in Yorktown, she was on my track team.” “She’s lying about her background, she’s lying about her upbringing,” Slater claimed. Slater’s post sent social media ablaze and prompted Ocasio-Cortez to respond after an image if her family’s home was posted online. “I’m proud of how I grew up and talk about it all the time,” Ocasio-Cortez wrote on X Friday responding to the post. “My mom cleaned houses and I helped. We cleaned tutors’ homes in exchange for SAT prep.” “Growing up between the Bronx and Yorktown deeply shaped my views of inequality & it’s a big reason I believe the things I do today!”](https://i2.wp.com/static.foxnews.com/foxnews.com/content/uploads/2025/06/aoc-yearbook-2.jpg?resize=150,150&ssl=1 "Rep. Alexandria Ocasio-Cortez’s tough Bronx persona is under fresh scrutiny with a resurfaced childhood nickname from her suburban upstate New York upbringing casting doubt on that publicly portrayed image. The progressive champion’s latest spat with President Donald Trump over the Iran strikes again called into question her true upbringing when she declared on X she was a “Bronx girl” to make her a point against the president. The 35-year-old congresswoman wrote in part on X: “I’m a Bronx girl. You should know that we can eat Queens boys for breakfast. Respectfully,” she said, referring to the president’s upbringing in Queens as she called for his impeachment over his decision to bypass Congress in authorizing U.S. strikes on Iranian nuclear facilities. Ocasio-Cortez was born in the Bronx but moved to Yorktown – which is nearly an hour outside New York City — when she was 5 years old and went on to attend Yorktown High School where she graduated in 2007. She was considered an accomplished student there and well thought of by teacher Michael Blueglass, according to a 2018 report by local media outlet Halston Media News. “There, known by students and staff as ‘Sandy,’ she was a member of the Science Research Program taught by Michael Blueglass,” the report states. “She was amazing,” Blueglass said, per the report. “Aside from her winning one of the top spots and going to the [Intel International Science and Engineering Fair], she was just one of the most amazing presenters in all of the years I’ve been at Yorktown. Her ability to take complex information and explain it to all different levels of people was fantastic.” After high school, Ocasio-Cortez attended Boston University, where she majored in economics and international relations, per the report. Ocasio-Cortez’s “Sandy” nickname — which carries a more suburban and preppy tone — appears to undercut her politically crafted image as a tough, inner-city fighter, one she has portrayed since her famous 2018 congressional campaign where she eventually ousted former 10-terms Congressman Joe Crowley. New York GOP Assemblyman Matt Slater, who now represents Yorktown, added to the scrutiny of Ocasio-Cortez’s persona in the wake of her brash with Trump and released images of Ocasio-Cortez from his high school yearbook. He claimed he and the rising Democratic star attended Yorktown High School at the same time when she was a freshman and he was a senior. “I saw the attacks on the president and her [Ocasio-Cortez] claims that she’s a big, tough Bronx girl,” said Slater. “To sit there and say that she’s a Bronx girl is just patently ridiculous.” “Everybody in our community knows this is just a bold-face lie,” said Slater on “Fox & Friends First” last week. “She grew up in Yorktown, she was on my track team.” “She’s lying about her background, she’s lying about her upbringing,” Slater claimed. Slater’s post sent social media ablaze and prompted Ocasio-Cortez to respond after an image if her family’s home was posted online. “I’m proud of how I grew up and talk about it all the time,” Ocasio-Cortez wrote on X Friday responding to the post. “My mom cleaned houses and I helped. We cleaned tutors’ homes in exchange for SAT prep.” “Growing up between the Bronx and Yorktown deeply shaped my views of inequality & it’s a big reason I believe the things I do today!”")
