Nebius Group (NASDAQ: NBIS) has seen a surge in revenue and stock price, up over 300% this year. The company offers AI customers access to compute for their workloads. With a revenue increase of 625% in the most recent quarter, Nebius is positioned to benefit from the growing AI market, which is expected to reach over $2 trillion.

Nebius, formerly known as Yandex, specializes in neocloud services for AI infrastructure, differentiating itself from general cloud providers. The company reported a revenue run-rate guidance of $900 million to $1.1 billion, showing strong demand for its GPU-powered compute services. Despite the stock’s climb, Nebius still has significant growth potential with room for expansion in the AI market.

Competing in the neocloud space with CoreWeave, Nebius offers managed services for AI customers, while CoreWeave focuses on renting out compute. Both companies have the potential to thrive in the AI revolution, supported by investments from Nvidia. Nebius’ current revenue level of $105 million leaves ample room for growth, indicating future potential for the stock.

Investing in Nebius depends on your risk tolerance and investment strategy. Cautious investors may prefer established cloud players like Microsoft or Amazon, while aggressive investors could consider Nebius for its potential explosive revenue growth. With the AI market predicted to grow significantly, Nebius could offer strong stock performance in the years ahead. Consider the top 10 stock picks from The Motley Fool’s Stock Advisor before making your decision.

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