Shares of Nebius Group (NASDAQ: NBIS) have surged by over 417% in the past year, transitioning from a niche cloud provider to a prominent AI infrastructure player. The $17.4 billion deal with Microsoft has significantly boosted revenue visibility for the company.

Nebius is rapidly expanding its infrastructure platform, with near-peak utilization in the second quarter. Management expects data center capacity to reach 220 megawatts by 2025. Analysts forecast a 392% revenue growth in fiscal 2025, although the company trades at a high valuation of 114.9 times sales.

Smart money and retail interest are fueling Nebius’ stock surge. Institutional investors hold a 21.9% stake in the company, with significant inflows and outflows over the past year. The company’s future growth prospects and Microsoft deal have attracted investor attention.

Read more at Barchart: This Tech Stock Is Up Over 400%. Here’s 1 Key Reason Why Smart Money Is Buying.