Nebius Group’s Rapid Growth Amid AI Boom
Nebius Group (NASDAQ: NBIS) has seen a remarkable share price increase of over 160% in the past year, driven by skyrocketing demand for AI computing capacity. In the latest quarter, the company reported a revenue surge exceeding 300%, fueled by multi-billion dollar contracts with major clients like Microsoft and Meta Platforms.
As the AI market is projected to reach trillions of dollars by the end of the decade, Nebius is capitalizing on this expansion but faces competition from established cloud giants like Amazon and Microsoft itself. Analysts have raised concerns regarding the company’s future financials, given it may need to incur debt to meet demand, leading to uncertainty about its long-term profitability.
