Nebius Group (NBIS) Rallied Following a Multi-Year AI Infrastructure Agreement Announcement with Microsoft

Crossroads Capital LLC, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Crossroads Capital Investment Partners, LP, appreciated 6.4% net of all fees and expenses in the third quarter of 2025, making the YTD return 34.1% net through Q3 2025. The fund has compounded at 21.4% gross and 17.3% net basis since inception. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Crossroads Capital highlighted stocks such as Nebius Group N.V. (NASDAQ:NBIS). Headquartered in Amsterdam, the Netherlands, Nebius Group N.V. (NASDAQ:NBIS) is a technology company. The one-month return of Nebius Group N.V. (NASDAQ:NBIS) was 4.89%, and its shares gained 230.08% of their value over the last 52 weeks. On December 22, 2025, Nebius Group N.V. (NASDAQ:NBIS) stock closed at $93.23 per share, with a market capitalization of $23.476 billion.

Crossroads Capital stated the following regarding Nebius Group N.V. (NASDAQ:NBIS) in its third quarter 2025 investor letter:

“Nebius Group N.V. (NASDAQ:NBIS) moved sharply higher after announcing a multi-year AI infrastructure agreement with Microsoft with a contract value of $19+ billion that effectively exceeded Nebius’ pre-announcement market capitalization. The more important point isn’t the size of the headline win but the character of the revenue, which provides significant visibility into Nebius’ future earnings power.

It’s worth pointing out that the GPUs Nebius is running are dedicated to Microsoft’s own internal workloads, core AI research, Copilot, and other first-party applications, rather than capacity resold at the edge of Azure. That distinction matters. After all, internal workloads are strategic, budgeted, and tightly linked to Microsoft’s product road map; we believe this makes the related cash flows more resilient than third-party, usage-based demand. The structure of this tie-up is closer to an AI infrastructure off-take agreement than a typical cloud contract: long-dated, effectively take-or-pay, and financeable against Microsoft’s AAA credit profile. In practical terms, Nebius is using Microsoft’s balance sheet to term out project-level funding and lower its cost of capital…” (Click here to read the full text)

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Nebius Group N.V. (NASDAQ:NBIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 65 hedge fund portfolios held Nebius Group N.V. (NASDAQ:NBIS) at the end of the third quarter, up from 45 in the previous quarter. While we acknowledge the risk and potential of Nebius Group N.V. (NASDAQ: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 Nebius Group N.V. (NASDAQ:NBIS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Nebius Group N.V. (NASDAQ:NBIS) and shared the list of stocks that will go to the moon in 2026. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.