1. Nebius Group (NASDAQ:NBIS)
Number of Hedge Fund Investors: 60
Nebius Group (NASDAQ:NBIS) is up about 500% over the past year but social media believes the stock has 10x potential. Nebius is essentially a landlord and operator of giant warehouses packed wall to wall with Nvidia’s most powerful chips. Every AI company in the world needs these chips to build and run their AI models, but buying them outright costs hundreds of millions of dollars. So instead they rent them from Nebius by the hour.
What makes it stand out is that Nebius does not just rent raw hardware. They built the warehouses themselves, own the land, supply the electricity, and configured everything from scratch specifically for AI. On top of the hardware, they built software that manages everything so customers do not need armies of engineers to get started.
The company’s contracted backlog is roughly $47 billion, comprising $17.4 billion from Microsoft and up to $29.9 billion from Meta. Demand is so intense that these two tech giants signed long-term contracts and pre-paid $4.8 billion before the hardware was even fully built.
Risks include the fact that Microsoft, Meta, and Google are all building their own data centers and may reduce their reliance on Nebius once their internal capacity comes online. GPU rental pricing has collapsed in the past when new chip generations arrived and there is no guarantee Nebius can re-contract at similar rates when its current fleet needs refreshing.
Crossroads Capital stated the following regarding Nebius Group N.V. (NASDAQ:NBIS) in its Q1 2026 investor letter:
“Nebius Group N.V. (NASDAQ:NBIS): It’s worth pausing to remember where this one sat a year ago. When we first bought NBIS in late 2025, the bear case wrote itself. Nebius was a freshly re-listed carve-out of Yandex, operating a modest data center with a few co-locations across Europe, and a customer book composed almost entirely of VC-backed AI natives and other small, unproven firms. No anchor customer. No enterprise counterparties worth the name. A small but growing fleet of Nvidia GPUs financed with cash the company was burning faster than it was generating. And the elephant in the room was that nobody had any real idea how the capital markets would treat a Russian-adjacent carve-out asking them to underwrite a multi-gigawatt buildout. You had to squint to see a business. What you could see was a team, a collection of good assets arguably trading below liquidation value, and an execution-based timing window.
One year later, the questions that defined that bear case have been answered in sequence, and not one of them broke the wrong way. Late in 2025, NBIS added META to its customer list with a ~$3B capacity-constrained contract. In March, that became a $27B five-year commitment in two pieces: $12B of dedicated capacity on one of the first large-scale Vera Rubin deployments starting in early 2027, and a further $15B in which Meta commits to backstop Nebius’s uncommitted third-party capacity as it comes online. That second piece matters more than the headline suggests, as it turns Meta into a floor buyer for speculative builds and collapses demand risk on capacity Nebius was already planning to scale. Combined with Microsoft, committed contract value now sits at roughly $46B against a platform that did $228M of revenue in Q4. The platform thesis is scaling as we speak, with AAA counterparties…” (Click here to read the full text)
While we acknowledge the potential of NBIS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NBIS and that has 100x upside potential, check out our report about the cheapest AI stock.
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