Nebius Group: The NVIDIA-Backed AI Stock That Could Skyrocket in 2025

AI is booming, and the race to dominate the future is on. One company just got a game-changing vote of confidence from NVIDIA – Nebius Group.

Back in December 2024, NVIDIA disclosed its investment in Nebius Group, an AI cloud company that’s still under the radar. That’s a big deal.

Nebius is building the infrastructure that companies like OpenAI, Google, and Tesla rely on to train AI models.And while it’s expanding rapidly in the U.S. and Europe, it’s still flying under the radar—at least for now.

So, what exactly is Nebius? And why are investors saying it could skyrocket in 2025? Let’s break it down.

What Does Nebius Group Do?

Nebius Group isn’t just another AI company—it’s building the infrastructure that powers AI itself.

Think of it like this: AI models (like ChatGPT) need massive computing power to learn and improve.

Nebius provides that power at scale—faster, cheaper, and more efficiently than most competitors.

Here’s how Nebius makes AI possible:

1. AI Cloud Platform – Businesses use Nebius’ AI cloud to run and train machine learning models, just like they would on AWS or Google Cloud.
   
2. High-Performance GPU Clusters – AI models require specialized, high-performance GPUs (graphic processing units). Nebius offers them 20-25% cheaper than competitors.
   
3. AI Ecosystem – Nebius isn’t just a cloud provider—it also owns AI-focused companies like Toloka AI (data labeling), TripleTen (AI education), and Avride (autonomous driving) to create an all-in-one AI ecosystem.

They Compete With Giants Like AWS & Google – Here’s What Sets Nebius Apart:

Tech giants like AWS and Google Cloud dominate cloud computing, but they serve everything—e-commerce, healthcare, finance, entertainment—you name it.

Their cloud platforms are general-purpose, not specifically optimized for AI.

Nebius is different. It’s AI-native—built exclusively for AI workloads. This means:

• Lower Costs – 20-25% cheaper GPU cloud costs because Nebius optimizes for AI, rather than general cloud services.
  
• Faster AI Processing – Designed for high-performance AI models, meaning companies train and deploy AI faster.
  
• End-to-End AI Ecosystem – AWS and Google Cloud don’t own AI model training companies. Nebius does. Its Toloka AI (data labeling) and TripleTen (AI education) businesses feed directly into its AI cloud platform, creating a seamless ecosystem.

For AI startups and enterprises, this means one thing: More computing power, lower costs, and a fully integrated AI stack.

The Man Behind Nebius: From Search Engine Mogul to AI Cloud Pioneer

Arkady Volozh isn’t new to building billion-dollar tech companies. Before Nebius, he co-founded and led Yandex, the “Google of Russia,” turning it into one of Europe’s biggest tech giants.

Then everything changed. After Russia’s invasion of Ukraine, Volozh made the bold decision to sell off Yandex’s Russian assets, severing ties with his home country and reinventing the company as Nebius Group—a pure-play AI infrastructure firm.

Now, he’s using decades of experience to turn Nebius into an AI powerhouse.

In a recent interview at the Financial Times’s “Future of AI Summit 2024”, he discussed Nebius’ AI ambitions and its competitive advantage in the rapidly evolving market.

Financials: Solid Foundation for Major Growth

Nebius is in a strong financial position, giving it the flexibility to expand aggressively while maintaining stability.

• In just one year, Nebius’ stock has doubled—a sign that investors are taking notice of its rapid expansion.
  
• With $3 billion in cash and barely any debt, Nebius has the financial firepower to scale aggressively without risking instability.
  
• $1 billion expansion plan, rolling out new data centers in Kansas City, San Francisco, Finland, and Paris to support increasing AI computing demand.
  
• Over 40 customers, including Fortune 500 companies, steadily increasing its market presence.

The company is still in its high-growth phase, meaning profitability isn’t the primary focus yet.

However, analysts project Nebius’ revenue will grow 30% annually through 2030, fueled by its AI infrastructure services and expanding global footprint.

The key question is: Can Nebius turn its rapid growth into long-term profits? With a strong cash position, NVIDIA backing, and a growing customer base, the company is well-positioned to compete in the AI infrastructure race.

With Nebius in a strong financial position, the question is: How big can it get? Here’s why investors believe this AI stock could skyrocket.

Here’s why Nebius could explode in value over the next few years:

1. NVIDIA Is Betting on Nebius
   NVIDIA invested $700 million in Nebius, and that’s a major stamp of approval. More importantly, this partnership gives Nebius early access to NVIDIA’s latest AI chips—something its competitors don’t have.
   
2. AI Demand Is Surging
   Companies everywhere are rushing to build AI models, and they all need powerful cloud computing to do it. Nebius provides a cheaper alternative to big players like AWS and Google Cloud, which makes it attractive to AI startups and growing businesses.
   
3. Expansion Into the U.S. and Europe
   Nebius is rapidly expanding its data center network, including its first major U.S. AI hub in Kansas City (going live in 2025). More data centers = more computing power = higher revenue potential.
   
4. AI Ecosystem Creates More Opportunities
   Beyond cloud computing, Nebius has businesses in autonomous vehicles (Avride), AI education (TripleTen), and AI model training (Toloka AI). These businesses feed into each other, creating multiple streams of revenue growth and reinforcing Nebius’ position in the AI industry.

Recent Developments: Nebius Expands AI Infrastructure and Secures Key Partnerships

Nebius Group is making major moves in AI infrastructure, expanding its data center footprint and securing high-profile partnerships to strengthen its market position. The company is rapidly scaling operations in Europe and the U.S., backed by a $700 million investment from NVIDIA and other key investors.

Here’s a look at the latest milestones shaping Nebius’ growth:

1. $700 Million Investment to Fuel AI Expansion

In December 2024, Nebius raised $700 million in funding from NVIDIA, Accel, and other investors. This capital is fueling rapid expansion of its AI infrastructure and granting Nebius early access to NVIDIA’s most advanced AI chips. This partnership is a huge advantage in an industry where cutting-edge hardware makes all the difference.

2. Finland Data Center Expansion: Tripling Capacity

Nebius is making a massive bet on AI infrastructure, tripling the capacity of its Finland data center to support 60,000 GPUs—a move that could generate over $1 billion in annual revenue and solidify its position as a major AI cloud provider.

The Finland facility also prioritizes sustainability, using free cooling systems and repurposing server heat to provide residential heating to the local community.

3. U.S. Expansion: First GPU Cluster in Kansas City

• Nebius is making a strong push into the U.S. market with the launch of its first NVIDIA GPU cluster in Kansas City, Missouri, scheduled to go live in Q1 2025.
  
  Initially equipped with NVIDIA H200 Tensor Core GPUs, with plans to upgrade to the Blackwell platform later in the year.
  
• The Kansas City site can expand from 5 MW to 40 MW, scaling up to 35,000 GPUs as demand increases.
  
• To support this growth, Nebius has also opened customer hubs in San Francisco and Dallas, with a New York office set to launch by the end of 2025.

4. Autonomous Vehicles: Uber Partnership with Avride

• Nebius isn’t just expanding its cloud services—it’s also moving deeper into AI-driven mobility. Avride, Nebius’ autonomous vehicle subsidiary, has entered a multiyear partnership with Uber Technologies.
  
  The collaboration will integrate Avride’s delivery robots and autonomous vehicles into Uber’s logistics and transportation network.
  
• This move positions Nebius as a key player in the growing autonomous driving market, tapping into AI-powered mobility solutions.

Nebius’ Path Forward

With massive infrastructure growth, major partnerships, and NVIDIA’s backing, Nebius is rapidly strengthening its position in the AI industry.

As the demand for AI cloud services and autonomous technologies accelerates, these latest developments underscore Nebius’ ambition to become a leading force in the AI revolution.

Risks: Challenges Nebius Needs to Overcome

While Nebius has huge growth potential, there are still some risks investors should keep in mind:

1. Heavy Dependence on NVIDIA
   Nebius relies on NVIDIA’s GPUs to power its AI cloud platform. While this partnership gives Nebius early access to cutting-edge chips, it also means any supply chain disruptions or pricing changes from NVIDIA could impact Nebius’ costs.
   
   If NVIDIA ever changes the terms of their partnership, Nebius might struggle to find a competitive alternative.
   
2. Fierce Competition from Tech Giants
   The AI cloud market is dominated by massive players like AWS, Microsoft Azure, and Google Cloud. These companies have deep pockets, existing client relationships, and massive infrastructure.
   
   While Nebius is carving out a niche with cost-effective AI solutions, it will need to keep innovating to compete against these industry giants.
   
3. High Costs of Expansion
   Building and maintaining AI data centers is expensive. Nebius is investing $1 billion into expansion, and while it has strong cash reserves now, scaling too fast or facing delays could put pressure on its finances.
   
   Investors should watch how efficiently Nebius manages its spending as it grows.
   
4. Not Yet Profitable
   Like many fast-growing AI companies, Nebius is not yet turning a profit. It is generating revenue and rapidly expanding, but it’s still spending more than it earns to build its business.
   
   The key question is: How long will it take to reach profitability?
   
5. Unpredictable Market Conditions
   The tech industry is highly volatile, and unexpected events—like the DeepSeek panic selloff—can shake up the entire AI sector.
   
   If AI investments slow down or the economy weakens, Nebius’ stock could see big swings before stabilizing.
   

Technical Analysis: From Collapse To AI Comeback

Looking at the monthly chart, Nebius tells a story of both dominance and reinvention.

Originally listed on Nasdaq in 2011 as Yandex, the company spent its first few years struggling, but by 2015, it took off – becoming the Google of Russia and a dominant force in search, cloud computing, and digital services.

Yandex thrived for years, with its stock seeing strong gains – until geopolitical turmoil changed everything.

In 2022, Russia’s invasion of Ukraine triggered severe economic sanctions and investor panic, causing Yandex’s stock to plummet by 84% before trading was completely halted. For nearly two years, the stock remained frozen, while the company scrambled to separate itself from its Russian business.

Then, in July 2024, Yandex sold off its Russian assets for $5.4 billion, severing ties with its past and rebranding as Nebius Group, a pure-play AI infrastructure company.

That transformation is now reflected in the chart—since relisting on Nasdaq in October 2024 under the ticker NBIS, the stock has surged, fueled by strong fundamentals and investor confidence in its AI-focused future.

Since its resurgence, Nebius has been on an upward trend, driven primarily by strong fundamentals and investor confidence in its CEO rather than pure speculation.

However, NVIDIA’s investment attracted a wave of traders chasing the hype, pushing the stock into overbought territory. As a result, a short-term pullback could be on the horizon.

This company is suitable for both swing traders and long term investors.

Buy Limit Orders:

• $ 42.12
• $36.77
• $32.50

Sell Limit Orders:

• $ 86.81
• $ 100.61
• $ 116.25

Remember: Investing is personal, and what is right for me might not be right for you. Always do your own due diligence. You should ONLY invest based on your own risk tolerance and your timeframe for reaching your portfolio goals.

Final thoughts: Is Nebius the Next Big AI Stock?

Nebius Group has undergone a remarkable transformation, evolving from its Yandex roots into a fast-growing AI cloud infrastructure company.

With $3 billion in cash reserves, a $1 billion expansion plan, and a strong partnership with NVIDIA, Nebius is positioning itself as a major player in the AI computing space.

The company’s rapid expansion in the U.S. and Europe, cost-efficient AI infrastructure, and growing client baseindicate significant growth potential.

While risks remain—such as competition from hyperscalers and dependence on NVIDIA for GPUs—Nebius’ strong financial health and aggressive expansion strategy make it a stock worth watching.

With AI demand skyrocketing, Nebius could be at the beginning of an exciting growth trajectory. The question is: Will it live up to its potential?

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If you enjoyed my blog post about Nebius Group, you’ll love my post “Tesla Stock Dips After Sector Shake-Up: Opportunity Ahead or Red Flag?”.

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