Nebius, formerly Yandex, rebranded itself and refocused on AI infrastructure services. It recently resumed trading on Nasdaq, impressing investors with rapid growth and a $17.4 billion AI deal with Microsoft. Despite the high stock price, Nebius’ expansion plans and long-term growth potential make it a solid investment choice.

Nebius fully owns a data center in Finland and leases others through colocation deals. It provides cloud-based AI infrastructure services, integrating GPUs and managed services. Compared to CoreWeave, Nebius offers a broader range of services and boasts Nvidia’s support and a lucrative deal with Microsoft.

Nebius experienced a 462% revenue surge in 2024, with analysts projecting a 231% CAGR to $4.25 billion by 2027. EBITDA is expected to turn positive in 2026, driven by a partnership with Microsoft and capacity expansions. While Nebius trades at 6 times projected sales, it remains reasonably valued for its growth potential.

Despite the cash burn and debt accumulation for expansion, Nebius is poised to benefit from the shift towards cloud-based AI processing. Analysts believe Nebius’ stock is worth accumulating near its all-time highs for long-term growth potential. Investors should consider Nebius as a solid investment choice for the future.

Read more at Nasdaq: Is Nebius Group Stock a Buy?