With AI infrastructure investments increasing, one Nvidia partner is positioned independently to take advantage of this trend.
In October, data center company known as Nebius Group (NBIS) 1.67%)) It is listed on the Nasdaq Stock Exchange. At the time, the company was relatively unknown and had little experience with investor enthusiasm during the public offering.
The reason for this was that Nebius was not a high-profile startup that he was waiting for investors to make it public. Rather, Nebius was a spinoff from a Russian internet conglomerate called the Yandex. Continued on the list of NasdaqNebius has completed $700 million private property that took the interest of the semiconductor powerhouse. nvidia.
Throughout 2025, Nevius has worked closely with Nvidia. This is because the company plays a key role in equipping Nvidia's latest Blackwell GPU architecture in its data centers. Furthermore, Nebius has several other business segments that span various pockets of the realm of artificial intelligence (AI), such as software applications and autonomous driving.
In my eyes, this diverse ecosystem brings out similarities Amazon. Let's explore how Nebius emerged as an Amazon in the AI infrastructure market and assess whether it's a good time to buy stocks.
Nebius and Neocloud
Nebius has emerged as a major player in the neo-cloud market. Similar to coreweave and OracleNebius offers AI infrastructure as a service. Essentially, the company will equip a data center with an NVIDIA GPU architecture, then lending access to this infrastructure to other businesses.
In some ways, this is not different to the purpose of Amazon Web Services (AWS), Amazon's cloud computing platform. AWS allows developers to build and scale applications into Amazon's infrastructure stored in data centers around the world. Today, Nebius' AI infrastructure reach includes data centers in New Jersey, Kansas City, Iceland, Finland, France, the UK and Israel.
According to the company's finances, Nebius' core infrastructure platform boasts a $249 million annual recurring revenue (ARR) execution rate at the end of the first quarter. While this may seem small compared to rivals' multi-billion dollar deals, Nebius has led to the ARR execution rates to be in the $750 million to $1 billion by the end of the year.
Given that Nebius operates only as a standalone entity in under a year, the company's growth is very impressive and I think we are optimistic that Nvidia can continue to expand as it releases its subsequent GPU architecture in the coming years.
Image source: Getty Images.
Nebius has more than just a data center
Beyond the core infrastructure business, Nebius operates in three subsidiaries: Avride, Toloka and Tripleten.
Avride develops self-driving cars and delivery robots. The company now has a fleet of delivery robots operated in Tokyo thanks to its partnership with Rakten (Some people call it “Japan's Amazon.”
Furthermore, Avride works closely together Hyundai and Uber Technology To help develop the Robotaxis fleet, which is expected to be released in Dallas later this year. There are some similarities between Nebius' foray into self-driving cars and the delivery opportunities for Amazon's Robotaxi Company and Zoox investments.
Toloka is a data labeling platform similar to Scale AI. Companies such as Anthropic and Amazon, Shopifyand Microsoft He is a Toloka customer and uses the company's software in a variety of generator AI applications.
Tripleten is an online education platform that provides bootcamps for services in a variety of demand, including cybersecurity, data science, and software engineering.
While Toloka and Tripleten do not directly compete with Amazon itself, AWS offers overlapping features through products such as Amazon Mechanical Turk and Amazon Sagemaker.
Are you buying Nebius stock now?
As of July 28th, Nebius stocks have skyrocketed 84% so far this year – S&P 500 and Nasdaq Composite.
NBIS data by YCHARTS
Taking these returns at face value, you might think Nebius' stock is just too much momentum behind it now. In my view, there is more to look at Nebius' stock price action than eye contact.
As the chart above shows, Nebiusstock fell sharply earlier this year as a wide range of technology industries experienced a massive drawdown shortly after tariff-driven uncertainty.
However, following CoreWeave's initial public offering (IPO) in late March, combined with new investor enthusiasm following several previous first quarter revenues in May, Nebius shares began witnessing a sharp rebound.
My main point here is that both extreme sales and purchases of Nebius stock this year seem to be rooted in a broader macro element than anything particularly tied to the company. However, I don't think these dynamics will last forever. Goldman Sachs Recently, I started buying ratings for Nebius and set a price target of $68 for the stock. This means a 33% increase from current trading levels.
For me, Nebius was able to see it in a light similar to Amazon. Both companies operate critical cloud-based applications, each trying to disrupt AI on a variety of other infrastructure platforms. Amazon and Nebius consider them ubiquitous businesses that build ecosystems uniquely located in various pockets of AI infrastructure landscapes.
Given that the various Nebius businesses are still in the early stages of scaling, I think the company has much more room for driving in the long run. For this reason, we believe Nebius stock is easy for now.
Adam Spatacco has positions at Amazon, Microsoft, and Nvidia. Motley Fool has jobs and recommends at Amazon, Goldman Sachs Group, Microsoft, Nvidia, Oracle, Shopify, and Uber Technologies. Motley Fool recommends the Nebius Group and recommends the following options: A $395 phone call with length of Microsoft for January 2026 and a $405 phone call with short term Microsoft for January 2026. Motley Fools have a disclosure policy.
