Nebius Group, formerly known as Yandex, has seen its stock soar on the Nasdaq since restructuring. Revenue surged 462% in 2024 and another 437% in the first nine months of 2025. Analysts expect continued growth, with a market cap of $23 billion and a valuation of less than seven times this year’s sales.

While Nebius appears promising in the AI market, its sustainability is in question due to heavy reliance on hyperscalers like Microsoft and Meta. It operates only one data center and faces stiff competition. Investors seeking a more stable alternative may consider DigitalOcean, a cloud infrastructure company with a defensible niche and sustainable business model.

DigitalOcean offers affordable cloud infrastructure services to smaller businesses and developers, distinguishing itself from giants like AWS and Azure. It operates 15 data centers globally and turned profitable in 2023. Analysts expect continued revenue growth and stable earnings per share, driven by SMBs migrating to public clouds and the expanding AI market.

Investors considering Nebius Group should note that it may be a speculative play. The Motley Fool’s Stock Advisor team has identified 10 stocks for potential high returns, with Nebius not making the cut. For stability in the AI infrastructure market, DigitalOcean presents a compelling alternative with reasonable valuation and growth prospects.

Read more at Nasdaq: Forget Nebius Group: This Hyper-Growth Cloud Platform Is a Far Better Way to Play the AI Boom