Nebius Group Poised for Growth Amid AI Infrastructure Boom

NEW YORK, NY — Nebius Group, a key player in artificial intelligence infrastructure, is gaining attention as investment in AI technology surges. On June 8, 2025, the company reported a market capitalization of $11 billion and a stock price of $48.36, following a 4.45% decline in its share price.

Nebius is diversifying its operations across four main segments, with a core focus on infrastructure-as-a-service (IaaS). This service allows customers to utilize high-performance computing capabilities through the cloud. A critical component of Nebius’ growth strategy is its collaboration with industry leaders like Nvidia, which provides advanced GPU architectures that are essential for AI development.

The company’s subsidiaries, including Avride, Toloka, and TripleTen, also contribute to its diverse portfolio. Avride is making strides in autonomous vehicle technology and has partnered with Hyundai. Toloka acts as a data partner for AI developers, while TripleTen targets educational users with its software platform.

Nebius reported annual recurring revenue of $249 million from its IaaS business. Company management is optimistic about a substantial increase in revenue, projecting a run rate between $750 million and $1 billion by the end of the year. This rapid growth is bolstered by an expanding data center footprint in locations including Iceland and Kansas City, equipped with the latest Nvidia GPU architectures.

Despite recent challenges, including its spin-off from Yandex, a Russian internet conglomerate, Nebius appears well-positioned in the growing AI infrastructure market. Analysts are optimistic, with recent reports highlighting a potential for a stock price increase up to $84, indicating a 113% upside.

Investors are keeping an eye on Nebius’ significant cash reserves and plans for continued investment in cloud infrastructure. The company’s performance will be closely monitored, particularly its goal of achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) later this year, which is seen as a critical indicator of its growth trajectory.