NBIS Stock: Nebius Is an Under-the-Radar AI Play

Nebius [NBIS] is an Amsterdam-based artificial intelligence (AI) infrastructure firm. 

It recently divested from its parent Yandex, known as Russia’s Google, in a bid to distance itself from the geopolitical turmoil sparked by the war in Ukraine. 

Yandex delisted from the Nasdaq in 2023 and Nebius, which is led by the former Yandex CEO and Co-Founder, Arkady Volozh, started trading on the stock exchange last October. 

This stock spotlight will look at how Nebius could be an underappreciated stock, given its growth ambitions and the fact that it offers indirect exposure to Nvidia [NVDA]. 

Nebius Becomes a Nvidia Partner

In mid-March, Nebius was selected to be one of the first AI cloud providers to offer Nvidia’s Blackwell Ultra platform. 

“This is the future of AI, and we’re building it today,” declared Volozh in a press release.

Earlier in the month, Nebius announced plans to expand its US cloud computing capacity by building a 300 MW data center in New Jersey. The company will also deploy more than 22,000 Nvidia Blackwell GPUs across its data center network by the end of the year. 

NBIS Stock Sinks Amid Broader Sell-Off

Despite the Nvidia connection, the Nebius share price has been on a downward trend since the start of the year, with AI excitement starting to fizzle out. 

NBIS stock is down 19.45% from January 1 through March 28, to $22.31. It has gained 11.55% since it started trading back in October, but has lost half its value since soaring to a 52-week high of $50.87 during trading on February 18.

The Nebius share price pulled back following its Q4 2024 earnings on February 20 and has been dragged down further by the broader market selloff, as some investors rethink the valuation of AI stocks.  

NBIS Reports Stronger Revenue Growth 

AI demand helped fuel a 466% year-over-year jump in revenue in Q4 to $37.9m, driven mainly by its AI infrastructure segment, which soared 602%. Full-year revenue was up 462% to $117.5m. The company ended 2024 with $2.45bn in cash and cash equivalents. 

Triple-digit revenue growth and a seemingly healthy cash position aside, Nebius is still reporting significant losses. Adjusted EBITDA loss came in at $266.4m. Meanwhile, net loss from continuing operations was $396.9m. This hefty deficit could partly explain why the Nebius share price fell following the earnings report. 

Nonetheless, Volozh is confident the company can continue going from strength to strength. “Given this momentum, as well as the anticipated impact of additional data center capacity and Blackwell GPUs coming on-stream later this year, I am pleased to confirm that our projected December 2025 ARR of $750m–$1bn is well within reach,” he said in the earnings release. 

AI infrastructure competitor Arista Networks [ANET] reported a 6.6% year-over-year rise in Q4 revenue to $1.93bn, while preliminary results for Super Micro Computer’s [SMCI] Q2 2025, which ended on December 31, show a 54% surge at the midway point of its $5.6bn–$5.7bn guidance. 

This is how the three stocks compare.

Sources: Stockanalysis.com and Yahoo Finance

SMCI stock looks cheap, especially compared to NBIS stock and ANET stock, but the share price has fallen to low multiples. The AI server maker has been at risk of being delisted from the Nasdaq. 

NBIS stock looks extremely expensive relative to its P/S ratio, but the company is expected to report a huge jump in revenue this year. If it can eventually break even, then the stock could potentially be considered undervalued at its current level. 

NBIS Stock: The Investment Case

Bull Case for Nebius 

The AI firm has big plans to scale up its capacity to provide the power for the more advanced AI training needed to support the development of agentic AI applications. It announced back in December that it had raised $700m through a private placement, including investment from Nvidia, to support its ambition. 

“This strategic financing gives us additional firepower to do it faster and on a larger scale. I’m grateful to our investors for the trust they have placed in us — our team is ready to deliver,” said Volozh in a press release. 

At the time, Nebius had committed to spend $1bn by the middle of this year, but, following the $700m investment, it could end up spending more. 

Long-term, Nebius is “well positioned to take a sizable share of the AI compute market from the hyperscalers,” wrote DA Davidson analyst Alex Platt in a note to clients. He doesn’t see any risks from CoreWeave [CRWV], which went public on March 28.

Bear Case for Nebius 

While the long-term investment case for Nebius might look robust, NBIS stock could come under pressure.

There is a risk that the company could potentially burn through its cash and need to raise in the future, which would dilute the share price. If losses were to continue, then some investors could get cold feet over whether it will ever be able to achieve profitability.

Conclusion

Nebius is a key player in AI infrastructure that appears to be flying under many investors’ radar.

With AI stocks taking a breather, the current price of NBIS stock could be a good entry point for long-term exposure to the theme. However, investors should bear in mind that the company is unprofitable despite the recent revenue surge.