Nebius Group N.V. (NBIS) is a rising star in the AI-infrastructure market, while Alphabet (GOOGL) is an established tech giant. Spending on AI infrastructure is projected to surpass $200 billion by 2028. Both companies are poised to benefit from this trend, but one is a high-risk disruptor, the other a cash-rich incumbent.

Nebius, a fast-growing AI infra provider, has ambitious revenue targets for 2025 and is expanding aggressively in North America and Europe. However, intense competition, lack of profitability, and high capex spending are concerns. On the other hand, Alphabet, with its dominant Google Cloud, leads in cloud computing and has strong financial resources.

Despite Alphabet’s strong position, competition from Azure and AWS is a worry. Both NBIS and GOOGL are considered overvalued, with NBIS trading at a lower Price/Book ratio. Analysts have revised earnings estimates downward for NBIS and upward for GOOGL. Alphabet emerges as the better pick for long-term growth potential in the AI infrastructure sector.

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