Nebius Group NVNBIS, an artificial intelligence (AI) cloud infrastructure provider, is taking advantage of the surge in global demand for AI computing power. The Amsterdam-based company reports robust growth in AI-focused cloud services, training and deploying advanced AI models due to increased adoption across the industry and increasing reliance on high-performance infrastructure.
So far, in 2025, demand for AI infrastructure has skyrocketed, driven by the rapid adoption of generated AI, machine learning and high-performance computing applications. AI cloud infrastructure revenues rose more than nine times the previous year in the second quarter of 2025, due to demand for copper GPUs and near-peak GPU utilization.
NBIS revenues rose 625% year-on-year to $105.1 million in the second quarter. The increase in sales was driven primarily by strong performance in the company's core business and excellent execution by the tryplete team. Nebius' Core Business is an AI cloud platform designed for intensive workloads, powered by in-house software and hardware with R&D hubs in Europe, North America and Israel.
Separately, the company upgraded its cloud software to support growth capabilities and large clusters, expanding its customer base with its major tech companies such as CloudFlare, Prosus and Shopify, and maintaining its lead as the go-to cloud provider for native AI startups. Computational demand for AI is growing rapidly, and the company is expanding its ability to drive growth from 2026 onwards.
Nebius continues to see strong momentum in its business as the demand for AI remains so high. The company has updated its year-round outlook. This has led to an annual utilization rate (ARR) revenue guidance up $1.1 billion from new bands ranging from $900 to $1.1 billion from the previous $750 million to $1 billion range. For core business revenue, the company maintains guidance of between $400 million and $600 million.
Recently, Nebius has signed a five-year, $17.4 billion AI infrastructure agreement with Microsoft to roll out between 2025 and 2026 to provide dedicated GPU capacity from New Jersey's new Vineland Data Center. The contract could expand to $19.4 billion with additional capacity. Nebius is looking forward to such multifaceted transactions ahead of time, strengthening its position in the rapidly growing AI cloud market. These transactions are expected to drive revenue growth.
However, fierce competition and broader macroeconomic uncertainty could pose challenges to the NBI's growth trajectory. Nebius competes with the tech giant Microsoft Corporation msft and CoreWeave, Inc. CRWV.
Check out MSFT & CRWV's AI Initiative
Microsoft has made great strides in advancing AI capabilities. The company is leveraging the momentum of its AI business and adoption, along with accelerated expansion of Azure Cloud Infrastructure. In September 2025, IT and the US General Services Agency launched OneGov agreements, offering up to 12 months of Microsoft 365 Copilot Free federal agencies with discounted Azure, Dynamics 365 and Sentinel Services to promote AI adoption.
In August 2025, Microsoft announced Dion. This is a model optimization method that improves the scalability and efficiency of large-scale AI training, and has commercialized the “generated AI for permission” project to automate the “generated AI for permission” project and accelerate clean energy approval. Additionally, Microsoft has deployed Openai's GPT-5 through consumers, developers and enterprise products, including Microsoft 365 Copilot, Github Copilot, Visual Studio, and Azure AI Foundry. MSFT also introduced its first proprietary AI models, MAI-Voice-1 and Mai-1-Preview. These initiatives enable Microsoft to deepen AI integration across products, cloud services and enterprise solutions.
CoreWeave is an AI-focused company whose cloud platform is being developed to expand, support and accelerate Genai. In the second quarter, CoreWeave recorded a series of key achievements, securing virtuoso customers wins across AI Labs, Hyperscalers and the enterprise. This includes a $4 billion expansion at Openai, in addition to the previously announced $11.9 billion deal, and onboarded new Hyperscaler customers that expanded within the quarter.
With over 900 MW of active power targeted at the end of the year, CRWV has established itself as the highest level provider capable of meeting the needs of large-scale AI training and inference workloads. Management has increased its revenue guidance for 2025 from $4.9 billion to $5.1 billion to $5.355 billion, citing accelerated demand and a robust pipeline.
NBIS Price Performance, Ratings, and Estimates
Nebius stocks have skyrocketed 358.3% over the past six months, compared to the Internet. This is a 37.3% growth in the software and services industry.
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In terms of price/books, NBIS shares are trading at 7.07 times, higher than the 4.48 times ratio of the internet software services industry.
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Zacks Consensus estimates of NBIS revenue for 2025 have remained unchanged over the past 30 days.
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NBIS currently has Zacks rank #3 (hold). You can see Here is the complete list of today's Zacks #1 rank (strong purchase) stocks.
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