Is NBIS a good stock to buy? We came across a bullish thesis on Nebius Group N.V. on Investor in Misunderstood Companies’s Substack by Misunderstood Multibaggers. In this article, we will summarize the bulls’ thesis on NBIS. Nebius Group N.V.’s share was trading at $159.16 as of April 20th. NBIS’s trailing P/E was 1.39k, respectively according to Yahoo Finance.
For illustration purposes only. Photo by Brett Sayles on Pexels
Nebius Group N.V., a technology company, builds full-stack infrastructure to serve the global AI industry in the Netherlands and internationally. NBIS delivered a strong Q4 2025, reinforcing its position as a rapidly scaling AI infrastructure player despite a modest revenue miss ($227M vs. $242M estimates), which management attributes to the company’s early-stage nature and analysts’ difficulty in modeling its growth trajectory.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Demand remains exceptionally strong, with the company selling out across multiple quarters, longer contract durations, and stable pricing, while significantly exceeding ARR expectations throughout the year—highlighting both execution strength and sustained customer demand.
Looking ahead, Nebius guided FY2026 ARR to $7–9 billion and revenue to $3–3.4 billion, with management intentionally taking a conservative stance due to capacity coming online later in the year and large enterprise deals still ramping. While EBIT is expected to remain negative amid aggressive expansion, the company maintains confidence in achieving 20–30% margins over the medium term.
The core investment thesis centers on Nebius’s rapid capacity buildout and evolving product stack. The company has scaled data centers from 2 sites in 2024 to 16 by early 2026, while increasing contracted power guidance to 3 GW, signaling sustained infrastructure leadership. At the same time, Nebius is expanding beyond pure infrastructure with products like Token Factory and AI Cloud 3.1 “Aether,” enabling enterprise-grade AI deployment and positioning it competitively against hyperscalers.
The acquisition of Tavily further strengthens its ecosystem by integrating agentic search capabilities, advancing its vision of a unified AI platform. Despite a sizable $16–20 billion CapEx plan, funding appears manageable through internal cash flows, supplemented by optional debt or equity. With the agentic AI market expected to grow exponentially, Nebius offers a compelling long-term opportunity driven by execution, scale, and platform expansion.
Previously, we covered a bullish thesis on Nebius Group N.V. (NBIS) by Oliver | MMMT Wealth in April 2025, which highlighted the company’s undervaluation driven by AI infrastructure scalability, GPU expansion plans, and multi-billion-dollar ARR potential. NBIS’s stock price has appreciated by approximately 656% since our coverage. Misunderstood Multibaggers shares a similar view but emphasizes execution strength, capacity expansion, and platform evolution.
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.
Disclosure: None.
