The AI revolution is shifting focus to infrastructure, with Nebius Group N.V. and Alphabet Inc. standing out. Spending on AI infrastructure is expected to hit $758 billion by 2029, benefiting both companies. Nebius is rapidly expanding, securing major contracts, while Alphabet is leveraging custom hardware and cloud services to dominate the market.

Nebius is expanding rapidly in the supply-constrained AI-infrastructure market, targeting significant power capacity by 2026. The company secured major contracts and is enhancing its offerings. However, it faces challenges like rising costs and heavy capital requirements. Management has tightened revenue guidance, highlighting execution risks in scaling aggressively.

Alphabet is excelling in AI infrastructure, with a focus on custom hardware and cloud services. Google Cloud revenues surged in the third quarter of 2025, driven by investments in infrastructure, security, data management, analytics, and AI. The company’s strategic partnerships and acquisitions are boosting its cloud footprint worldwide.

NBIS shares have declined, while GOOGL stock has surged in the past month. Alphabet seems undervalued compared to Nebius. Analyst estimates show downward revisions for Nebius and upward revisions for Alphabet. While Nebius carries a Zacks Rank #4 (Sell), GOOGL holds a Zacks Rank #3 (Hold), making Alphabet a better pick currently.

Read more at Nasdaq: NBIS vs. GOOGL: Which AI-Infrastructure Play is the Better Buy Now?