By Manali Pradhan, CFA, The Motley Fool
Publication Date: 2025-12-02 16:20:00
Investors seeking opportunities in the AI infrastructure space can consider Nebius for its high growth potential.
For the past few years, Nvidia (NVDA +1.26%) has been the favorite artificial intelligence (AI) stock on Wall Street. But while investors stay hyper-focused on Nvidia’s record earnings numbers and growth prospects amid GPU shortages, another AI stock managed to deliver far higher returns. This stock is also positioned to surpass Nvidia’s returns in the coming year.
Image source: Getty Images.
Nebius (NBIS +0.00%) rents AI-optimized data center compute capacity, comprising dense GPU clusters, liquid cooling technology, and an enterprise-grade software stack, to large hyperscalers and enterprises for running high-intensity AI training and inferencing workloads. Share prices of the company are up over 355% in the past year (as of Dec. 1), far higher than Nvidia’s comparable share price gains of just over 30%.
While Nebius’ business is definitely more volatile than Nvidia due to Nebius’ high capital expenditure requirements and heavy reliance on GPU availability, the stock also has significant upside potential. Here’s why.
Growth catalyst
Demand for AI-optimized cloud computing capacity is higher than the available supply. Hence, Nebius has not only sold off all available capacity, but also pre-sold new capacity in new markets such as Israel and the United Kingdom even before its launch. The pricing power is evident in the company’s solid financials, with…
