We came across a bullish thesis on Nebius Group N.V. on Darius Dark Investing’s Substack. In this article, we will summarize the bulls’ thesis on NBIS. Nebius Group N.V.’s share was trading at $97.78 as of March 4th. NBIS’s trailing P/E was 794.04 according to Yahoo Finance.
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Nebius Group N.V., a technology company, engages in building full-stack infrastructure to service the global AI industry in the Netherlands, Europe, North America, and Israel. NBIS is often grouped with “Neocloud” providers such as CoreWeave, but this comparison overlooks a critical distinction.
While many Neocloud firms primarily finance and rent commodity GPUs, Nebius operates as a full-stack engineering company that designs its own servers, develops its own orchestration software, and manages its infrastructure end-to-end. This vertical integration allows the company to bypass integrators like Supermicro and maintain stronger margins.
Unlike heavily leveraged peers, Nebius also maintains a strong balance sheet with roughly $5 billion in cash, giving it resilience in a capital-intensive industry. The company’s roots trace back to Yandex, once known as the “Google of Russia,” whose founder Arkady Volozh orchestrated a complex restructuring following the 2022 geopolitical crisis.
After selling the Russian operating assets for $5.4 billion, the remaining entity—now headquartered in the Netherlands and listed on Nasdaq—retained key intellectual property and hundreds of experienced engineers who previously built Yandex’s hyperscale infrastructure. The broader opportunity is driven by a structural shortage of high-performance AI compute, particularly for GPUs like NVIDIA’s H100 and emerging Blackwell architecture.
Data-center construction, power infrastructure, and cooling capacity have become the main bottlenecks, enabling independent “AI utility” providers such as Nebius to supply compute faster than hyperscalers can build internally. Nebius has already secured major validation through long-term contracts with Microsoft worth up to $17.4 billion and a $3 billion agreement with Meta Platforms, demonstrating strong demand for its infrastructure.
With a confirmed backlog exceeding $20 billion and management targeting a $7–9 billion annualized revenue run rate by 2026, the company appears undervalued at roughly three times forward sales. If execution on new capacity—particularly the Vineland, New Jersey build-out—proceeds smoothly, Nebius could close the valuation discount created by its complex history and potentially re-rate significantly as a leading independent AI infrastructure platform.
Previously, we covered a bullish thesis on Nebius Group N.V. (NBIS) by Oliver | MMMT Wealth in April 2025, which highlighted the company’s AI infrastructure opportunity, plans to deploy 240,000 GPUs by 2028, and the potential to generate $3.5–4 billion in ARR. NBIS’s stock price has appreciated by approximately 364.51% since our coverage. Darius Dark Investing shares a similar view but emphasizes the company’s full-stack engineering advantage and hyperscaler contracts.
Nebius Group N.V. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held NBIS at the end of the fourth quarter which was 65 in the previous quarter. While we acknowledge the risk and potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NBIS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
