Europe-based cloud services provider Nebius (NASDAQ:NBIS) has experienced a 70% increase year-to-date, achieving a remarkable 385% year-over-year revenue growth in Q1 of 2025. The company, specializing in high-performance infrastructure for AI workloads, is distinctly positioned as a “Neocloud” player, unlike traditional cloud giants such as Amazon’s AWS or Microsoft’s Azure. This surge is attributed to sustained demand for generative AI solutions.
Nebius has a notable partnership with Nvidia (NASDAQ:NVDA), securing essential access to high-demand GPUs. This strategic relationship was solidified with Nvidia’s participation in a $700 million funding round last year, where it acquired over 1 million shares in Nebius. The company is targeting a revenue run rate between $750 million and $1 billion by the end of 2025, with projections indicating a 160% sales growth next year.
Currently trading at approximately $48 per share, Nebius has a favorable financial position, boasting nearly $2.5 billion in cash and no debt. This allows for broader growth opportunities while minimizing financial risk, contrasting with competitors like CoreWeave, which carries over $8.5 billion in debt.
