Here's the real reason behind the wild rise of Nebius stock
Amsterdam-based Nebius Group (NBIS) has quietly emerged as one of this year’s top-performing artificial intelligence stocks, underscoring how the infrastructure layer remains a core growth engine for data centers powering AI.
Nebius, which provides full-stack AI cloud infrastructure for high-performance computing workloads built around Nvidia GPUs, resumed trading on Nasdaq in October 2024 after divesting its Russian assets and relocating its headquarters to the Netherlands.
Since its relisting, NBIS shares have surged more than 380%, with most of those gains coming in 2025 amid an intensifying global AI investment boom that has driven a rise in demand for computing capacity.
The company has landed major long-term contracts, including a reported $19.4 billion agreement with Microsoft and a $3 billion deal with Meta Platforms. Nebius says most of its available capacity is now nearly fully booked as large enterprise customers race to secure AI infrastructure.
Despite the rally, the stock has pulled back about 28% from its October peak, reflecting the broader correction across AI-focused companies. Nebius currently carries a market capitalization of roughly $24 billion.
Heavy institutional involvement
While NBIS has largely flown under the radar of retail stock pickers, it has become a core holding for several hedge funds and asset managers, according to data from Mont Blanc Research.
PNC Financial Services increased its stake in the company by 2.5% to 9,610 shares, while LRI Investments raised its position by roughly 85%. Farther Finance Advisors also boosted its allocation, which now totals 7,005 shares.
Overall, institutional investors now control about 22% of Nebius shares, reinforcing the stock’s growing appeal among professional money managers even after its sharp run-up this year.
Revenue surges as losses persist
Fueling Nebius’ momentum is rapid revenue growth, which has so far overshadowed persistent profitability challenges. In its fiscal third quarter, the company posted revenue of $146.1 million, a 355% increase from a year earlier and a 39% gain from the prior quarter.
Adjusted net losses widened to nearly $120 million, compared with a loss of $43.6 million in the same period last year, reflecting heavy investment in capacity expansion.
Looking ahead, Nebius said it expects its annualized revenue run rate to reach between $7 billion and $9 billion by the end of fiscal 2026, signaling confidence in continued demand for its AI infrastructure.
According to the earnings report, Nebius has raised $4.3 billion in 2025 through a combination of convertible notes and a stock offering, bolstering its balance sheet as it funds ongoing data center buildouts, equipment purchases, and operating losses.