By Daniel Sparks
Publication Date: 2026-05-19 01:11:00
There’s a corner of the artificial intelligence (AI) infrastructure trade that just keeps getting hotter — and Nebius Group (NBIS 9.13%) is right in the middle of it. The Amsterdam-based AI cloud company has spent this past year stringing together one validating announcement after another, including a $2 billion strategic equity investment from chipmaker Nvidia (NVDA 1.38%) and multibillion-dollar capacity deals with two of the world’s largest tech companies. After a blowout first-quarter report last week, shares are now up more than 400% over the last 12 months, trading near all-time highs.
The underlying business is undeniably growing at a staggering rate. And the neocloud appears to be in the early innings of a multi-year build-out aimed at servicing surging AI demand. But after a run like this, the stock arguably already prices in a great deal of future success — leaving little margin for error.
Image source: Getty Images.
A business growing at a breathtaking pace
To be fair to the bulls, Nebius’s recent results are nothing short of staggering. The company’s first-quarter revenue rose 684% year over year to $399 million — an acceleration from 547% growth in the fourth quarter of 2025. Even better, the core AI cloud business, which now accounts for 98% of group revenue, grew 841% year over year and 82% sequentially to $390 million. Showcasing how big the business has become, annualized run rate revenue hit $1.92 billion at the end of March — up more than 50% from…
