Nebius: From Search Engine to Cloud-Based AI Infrastructure
Company Background
Formerly known as Yandex, Nebius underwent a significant transformation due to sanctions imposed on Russia in 2022, leading it to divest Russian assets and rebrand. Now a cloud-based AI infrastructure provider, Nebius resumed trading on NASDAQ under the ticker NBIS on October 21, 2024.
Stock Performance Overview
Nebius’ stock opened at $14.29 per share and reached a peak of $286.69 by June 18, 2026, turning a $1,000 investment into over $20,000. Currently, it trades around $220.
What Does Nebius Do?
Nebius operates as a neocloud company, deploying thousands of GPUs across data centers in Finland, Iceland, and the U.S., with plans to expand by opening 14 additional centers. As demand for AI applications grows, companies increasingly depend on providers like Nebius for cloud computing power.
Reasons for Stock Surge
- Revenue Growth: In 2025, revenue surged 351% reaching $530 million, with an even further increase of 529% in the first half of 2026 to $981 million. Adjusted EBITDA shifted from negative $75 million to positive $366 million.
- Contracted Backlog: By mid-2026, Nebius reported a backlog exceeding $40 billion.
- Future Projections: Analysts predict revenues of $3.3 billion in 2026, increasing to $12.3 billion in 2027 and $23 billion in 2028.
Valuation and Future Prospects
Despite impressive growth, Nebius’ stock seems undervalued. It has an enterprise value of $74 billion, trading at just 8x next year’s sales and 14x its adjusted EBITDA. Concerns over profitability and rising debt may contribute to this lower valuation.
Investment Outlook
If Nebius continues to meet projections and achieves a 30% CAGR in adjusted EBITDA, an investment of $1,000 could grow to over $9,000 by 2030. However, fluctuations in stock value are expected, and the sustainability of its growth strategy amid market challenges remains a critical factor for investors.
Investors should monitor Nebius closely as it navigates its capital-intensive expansion.
