Nebius Group (NASDAQ: NBIS) has surged by 223% in 2025 due to high demand for AI data center infrastructure. Despite revenue growth and a large backlog, the stock has dropped. Nebius plans to increase data center capacity but faces a premium valuation, requiring significant funding and increased debt.

To meet its expansion targets, Nebius will need more financing sources and expects share dilution. Investors are concerned about the company’s debt-fueled AI infrastructure financing model. Meanwhile, Dell Technologies (NYSE: DELL) offers a cheaper and safer investment option with a strong position in the AI server market and significant revenue growth projections.

Dell’s AI server revenue is expected to increase by 150% this year, reaching $25 billion. The company’s market share in the AI server market is estimated at 20%, surpassing competitors like Hewlett Packard Enterprise. Dell anticipates significant revenue growth from AI servers, aligning with the market’s forecasted growth rate of 39% annually through 2030.

Investors looking for growth and value may find Dell Technologies a compelling investment due to its leading position in the AI server market and steady revenue growth. Dell’s AI server business is growing rapidly, with the potential to capture a significant market share by the end of the decade, leading to substantial revenue growth.

Read more at Yahoo Finance: This Quiet AI Leader Looks Like the Smarter Buy Today