This AI Cloud Infrastructure stock can be the following Nvidia in the 1920s

• Nebius is shifting from an AI cloud provider to a full-stack AI infrastructure platform.

• The company is building a strong customer base, consisting of different technological giants.

• Increasing the acceptance of its software offers can help stimulate margins.

• 10 shares that we like than Nebius Group ›

Nvidia (Nasdaq: NVDA) Decoded The Secret of Thriving in The Artificial Intelligence (AI) ERA: Build a full-stack platform consisting of AI optimized hardware, software, networks and other components; Leave new and improved GPU architectures every year; And focus on recording shares in the AI ​​factory forbuiling of Multitrillion-Dollar now on the road.

Although it is not yet well known, a smaller AI player shows a strong momentum and quickly scales his AI cloud infrastructure. That company is Nebius Group (Nasdaq: NBIS).

Nebius’ performance in the second quarter of the tax 2025 (ending on June 30) emphasizes the growing force. Turnover increased by 625% on an annual basis and 106% consecutively to $ 105.1 million, driven by a strong demand in its core -AI cloud infrastructure activities. The company has also become adjusted income before interest, taxes, depreciation and amortization (EBITDA) positive prior to previous projections.

The management has also increased the guidelines for the Run-rate income (ARR) from a range of $ 750 million to $ 1 billion to a range of $ 900 million to $ 1.1 billion.

Much of the momentum comes from its core GPU Compute Clusters Business. The company witnesses near-peak usage percentages and stable prices for its AI clusters based on Nvidia’s Hopper Architecture GPUs, despite the next generation Blackwell Architecture GPUs that are expected to be available at the end of 2025.

Management said that Nebius scales from a niche ai -cloud provider to a full AI infrastructure platform. The company has expanded its cloud infrastructure capacity with large GPU clusters, doubled its network speed and made improvements in its software cloud platform to support large-scale AI training and inference workload.

Nebius sees a rapid expansion in his customer base, which now contains technological giants such as such as Cloudflare” Shopifyand Prosus, and leading AI-Native start-ups, including Heygen, Lightning AI and Photoroom. The addition of such large business customers has improved the visibility of Nebius’ income in the long term.

Nebius continues to witness the question that the available capacity of data center is far. To resolve this challenge, the company wants to reach 220 megawatts of connected capacity by the end of 2025, including around 100 Megawatts active power in the data centers in New Jersey and Finland. The company also started to expand to the UK and Israel.

Nebius strives for 1 gigawatt of secure power at the end of 2026, supported by expansion in existing data centers and new data centers sites. New data centers sites offer full control over design and implementation and can lower the total ownership costs by 20% compared to current data center sites.

NVIDIA also took a similar path during the early AI-BUILD-OUTPASSE. It went beyond the sale of GPUs and became a full-stack platform provider with integrated networks, software and support. It is quickly scaled to conquer a larger share of the AI ​​infrastructure market of $ 3 trillion to $ 4 trillion.

The focus of the company on the introduction of new architectures, which are also compatible with earlier, has given companies a predictable upgrade path. Nvidia then estimates that in a typical 1-Gigawatt AI data center about $ 35 billion of the construction costs of $ 50 billion comes from its platform.

Nebius now follows the same strategy from an earlier starting point: quickly add capacity with larger GPU clusters and building a software layer at the top. This can help the company create a platform that can scale as seamlessly like that of Nvidia. The company is also expanding its customer range by collaborating with Nvidia DGX Cloud Lepton and Nvidia AI Enterprise, who can further stimulate the acceptance of the Enterprise.

Nebius also improves its software pivotel to support the growing capacity and to improve the performance of GPU clusters of a larger scale. In addition to accelerating the network speed, the company has also improved reliability with automated software for health controls.

Nebius also develops an inference-as-a-service platform to work with AI models such as Llama, QWen and Flux on his infrastructure. This platform is designed to guarantee high performance and reliability in the workload of the inference, while challenges such as unpredictable latency, GPU scarcity and scale are tackled. The inference-as-a-service platform can lead to a shift in the turnover mix to software and services with a higher margin.

Just as Nvidia has created a solid competitive canal with its software ecosystem, Nebius can also see an impressive demand for its software offerings in the coming years.

Despite his rapid growth, Nebius is still in the early phases of his AI trip. Shares of the company have won 222% so far in 2025. The company has a market capitalization of around $ 22.3 billion and is turning 88 times. The premium prices emphasize the high expectations of Wall Street about the power of the company to quickly scale up.

Nebius, however, is confronted with considerable implementation risks. The company builds up mass electricity and data center capacity, which should not miss the timing and budget times. Delays in securing electricity, GPU range or large Enterprise deals can be under pressure on margins and slow growth. The company is also confronted with considerable competition from other hyperscalers and AI players.

To reach Nvidia-like scale in the 2030s, Nebius has to lock multimegawatt contracts with companies and AI companies, continue to release larger GPU clusters at a regular pace and deepen his software to stimulate margins and create stickiness.

This is absolutely not an easy task. However, if Nebius succeeds in effectively and effectively implementing this strategy, the switch from a fast-growing cloud player to a crucial infrastructure player in the AI-economy network such as Nvidia has switched from a gaming GPU player to an AI giant.

Consider this before you buy shares in Nebius Group:

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Manali Pradhan has no position in one of the aforementioned shares. The Motley Fool has positions and recommends Cloudflare, Nvidia and Shopify. The Motley Fool recommends Nebius Group. The Motley Fool has a disclosure policy.

Prediction: This AI Cloud Infrastructure shares can be the following Nvidia in the 2030s, was originally published by The Motley Fool