From Nasdaq: 2025-04-17 09:38:00

Nebius Group N.V. (NBIS) is challenging Microsoft Corporation (MSFT) in the AI infrastructure market. Microsoft’s Azure platform is second only to AWS, while NBIS is leveraging NVIDIA’s technology to build its AI cloud platform. Spending on AI infrastructure is projected to exceed $200 billion by 2028, offering growth opportunities for both companies.

Nebius, based in Amsterdam, specializes in AI infrastructure with a focus on GPU clusters and cloud platforms. The company is expanding its data center footprint in the US and Europe, aiming for a revenue run rate of $750 million to $1 billion in 2025. With strong financial backing and strategic expansions, NBIS is positioning itself for growth.

Microsoft, a dominant player in the AI infrastructure market, boasts Azure’s global data center coverage and custom AI chips like Azure Maia and Azure Cobalt. The company’s partnership with OpenAI gives it exclusive access to leading AI models, driving adoption of Azure AI services across various platforms. Microsoft’s strong financials and growth in Azure revenue make it a compelling choice for investors.

Despite recent tech sell-offs, Microsoft’s stock has shown more resilience compared to NBIS. Valuation-wise, both companies are considered overvalued, with NBIS trading at a lower Price/Book ratio than MSFT. Analysts have revised earnings estimates downward for NBIS, while Microsoft has seen a marginal revision. In terms of long-term growth potential and financial stability, Microsoft appears to be a stronger pick in the AI infrastructure space.

Investors looking for a promising AI infrastructure stock may find Microsoft to be a better choice over Nebius. With a Zacks Rank of #3 (Hold) and a strong position in the market, Microsoft’s growth prospects and financial stability make it an attractive investment option. For those interested in exploring more stock recommendations, Zacks Investment Research offers access to a variety of portfolio services for a nominal fee.



Read more at Nasdaq: NBIS vs. MSFT: Which AI Infrastructure Stock is the Better Buy?