Key Points
Nvidia (NASDAQ: NVDA) has invested over $2.1 billion in Nebius (NASDAQ: NBIS), acquiring more than 22 million Class A shares, representing a 7.7% to 8.3% stake. This partnership underscores Nvidia’s confidence in Nebius, an AI-focused cloud computing company that secured deals with both Meta Platforms and Microsoft.
Nebius reported a staggering 547% year-over-year revenue increase in Q4, reaching $228 million, with its core AI business surging 802% to $214 million. Management projects annual recurring revenue to rise between $7 billion and $9 billion by year’s end, up from $1.25 billion in 2025. While growth prospects are strong, Nebius is currently operating at a significant loss as it invests in data center expansion.
Analysts predict that Nebius’ revenue could nearly triple again next year, positioning it as a potentially lucrative investment within the AI sector. However, questions remain about its long-term profitability margins compared to larger competitors.
