Nebius Group plans to expand cloud infrastructure capacity to 1 gigawatt with a deal in place with Microsoft and fundraising efforts through stock offerings. The stock has seen significant gains but has also experienced a recent dip. There are concerns about an AI bubble, making it a risky investment for some.

Nebius Group, formerly part of Yandex N.V., now focuses on cloud infrastructure for AI technology. The company operates thousands of Nvidia GPUs and recently announced a new data center in Israel. A major agreement with Microsoft is valued at up to $19.4 billion, boosting Nebius stock by 200%.

The company aims to reach 1 gigawatt of cloud computing capacity by 2026, requiring significant capital investment. Nebius is raising funds through private and public stock offerings. Despite a second-quarter net loss, revenue increased by 625% year-over-year, with an improved annual revenue forecast.

Nebius Group is making strides in the AI industry, with a focus on providing in-demand services. While the stock carries risks, the company’s growth potential is evident. Analysts have set a price target of $156.40, indicating room for further growth. Investors with a high risk tolerance may find Nebius Group a suitable addition to their portfolios.

Read more at Nasdaq: Down 20%, Should You Buy Nebius Group Right Now?