Nebius Group (NBIS) has quietly become one of the more intriguing AI infrastructure plays, with the stock jumping 7% in the latest session even as returns over the past 3 months remain negative.
See our latest analysis for Nebius Group.
The 7.46% one-day share price return at $89.95 mostly claws back what has been a bruising stretch, with the 90-day share price return down 28.01% even as the 1-year total shareholder return sits at a striking 188.49%. This suggests momentum is trying to turn after a sharp rerating.
If Nebius has you rethinking where AI infrastructure fits in your portfolio, it may be worth exploring other high growth tech and AI names through high growth tech and AI stocks to see what else is gaining traction.
With revenue growing 46% and shares still trading roughly 32% below the average analyst target, is Nebius a mispriced way to play AI infrastructure, or is the market already banking on years of explosive growth?
Most Popular Narrative Narrative: 43.5% Undervalued
With Nebius closing at $89.95 against a narrative fair value near $159, the gap points to a potentially aggressive upside story taking shape.
Hypergrowth in demand for AI compute and cloud infrastructure, as evidenced by exceptionally strong revenue growth (625% YoY, 106% QoQ) and high utilization, suggests Nebius may benefit from long-term secular trends of accelerating digital transformation and AI adoption, potentially supporting sustained revenue and ARR expansion.
Read the complete narrative.
Curious what kind of revenue curve and profit ramp are required to back this punchy valuation? The narrative leans on compound growth, rising margins, and a premium future earnings multiple usually reserved for sector leaders. Want to see how those moving parts add up to that fair value target? Dive into the full breakdown behind this call.
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upbeat scenario could be knocked off course if competitive pricing pressure intensifies or if large hyperscaler contracts fail to translate into durable margins.
Find out about the key risks to this Nebius Group narrative.
Build Your Own Nebius Group Narrative
If this perspective does not align with your own views, or you simply prefer digging into the numbers yourself, you can build a custom Nebius thesis in just a few minutes, Do it your way
A great starting point for your Nebius Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
