The past year Nebius group (NBIS 10.78%) has become a core pillar supporting artificial intelligence (AI) infrastructure. As hyperscalers accelerate data center buildouts, Nebius is uniquely positioned to benefit given the company’s ability to deliver raw computing power and offer integrated chip systems designed to meet the demands of scaling AI workloads.
The company’s recent strategic wins, including deals with Microsoft, MetaplatformsAnd Nvidia — Position Nebius as an opportunity for rapid growth at the intersection of hardware and cloud computing.
Image source: Getty Images.
What does Nebius do?
Cloud providers such as Amazon Web Services (AWS), Microsoft Azure or Google Cloud Platform (GCP) were originally designed to handle generic web applications. Nebius’ business model is different. The company is often referred to as a neocloud – specifically designed for AI training and inference.
Neoclouds have emerged as key enablers of AI adoption because these platforms offer a full-stack approach: they provide server racks, custom data centers, and cost-efficient access to GPU clusters and associated software services.
Today’s change
(-10.78%)$-13.99
Current price
$115.86
Key data points
Market capitalization
$33 billion
Day range
$113.13 -$121.40
Range of 52 weeks
$6:31 p.m -$141.10
Volume
2.9 million
Avg. full
13M
Gross margin
-765.63%
Validation across the board by AI hyperscalers
Perhaps the biggest source of validation for the neocloud approach is Nebius’ ability to win over the hyperscalers that have historically been considered challengers. In late 2025, Nebius signed multi-year, multi-billion dollar deals with both Microsoft and Meta Platforms.
According to the documents, the deal with Microsoft extends until 2031 and is valued at $19.4 billion. Nebius will provide Microsoft with GPU infrastructure capacity at its facilities in Vineland, New Jersey, to support rising demand for Azure.
Around the same time that Microsoft won, Nebius also announced that it had signed a five-year, $3 billion AI infrastructure deal with Meta.
In addition to the dollar values of these groundbreaking contracts, Nebius’ ability to partner with multiple hyperscalers underscores a structural shift in the infrastructure market: even the world’s leading AI developers cannot scale their data footprint at a pace commensurate with capacity needs.
By outsourcing their needs to Nebius, Microsoft and Meta can reallocate part of their investment budgets (capex) away from the construction of data centers and the purchase of chips, while still guaranteeing capacity for their models.
In addition to the partnership with Microsoft and Meta, Nebius also recently received a $2 billion investment from Nvidia. This decision is strategically important for Nvidia as it complements the company’s existing investments in another leading neocloud, KernWeef. As such, Nebius has likely favored access to Nvidia’s next-generation Rubin and Blackwell Ultra GPU architectures through this partnership, ensuring its ability to provide continued capacity to its customers.
Are Nebius shares a buy in 2026?
The company’s financial trajectory has skyrocketed in recent years. By 2026, Nebius expects a run rate of between $7 billion and $9 billion in annual recurring revenue – up from just $90 million two years ago.
Given this level of growth, it’s not surprising that growth investors have flocked to Nebius stock. Over the past year, Nebius shares are up 326%.
This level of momentum could indicate that Nebius now has a premium valuation. However, based on the midpoint of the 2026 ARR run rate, Nebius is trading at an implied market cap-to-ARR (a proxy for price-to-sales) of 3.5. That’s a pretty steep discount compared to CoreWeave, which trades at a P/S of 6.4.
While CoreWeave is admittedly much larger than Nebius, this large difference between the valuation multiples may not be justified. Furthermore, the bull thesis surrounding Nebius is supported by the company’s long-term, multi-billion dollar contracts with some of the most influential players in AI. This gives the company a rare degree of visibility into its revenues and the ability to budget infrastructure buildout accordingly.
Investors with a long-term horizon may be compelled to initiate a position in Nebius to gain access to complementary markets beyond the core hyperscalers and obvious data center opportunities. While growth stocks often exhibit excessive volatility, I see Nebius and the broader neocloud landscape as a solid buying opportunity in 2026 as the big tech sector doubles down on AI investments.
