Artificial intelligence has rapidly transformed from a promising technology into one of the defining economic forces of this decade. Analysts worldwide believe AI could become one of the biggest long-term growth stories of our generation, with projections placing the global AI market at more than $3.5 trillion by 2033. While many companies dominate the headlines, one lesser-known powerhouse is quietly building the infrastructure that will power this future: Nebius Group (NBIS).

The Amsterdam-based AI infrastructure provider has emerged as one of the fastest-growing players in the global compute ecosystem. And despite recent market volatility, Nebius’ growth story appears far from over.

A Company Growing at Lightning Speed

Nebius’ financial results for the first nine months of 2025 reveal a company experiencing explosive expansion. Revenue surged by an astonishing 437% year-over-year, with Q3 alone delivering a 355% increase, reaching $146 million. Although the figure came in slightly below Wall Street expectations, the underlying demand tells a much bigger story.

The company has positioned itself as a full-stack AI infrastructure builder—running high-performance data centers powered by NVIDIA GPUs (NVIDIA also holds a stake in the company) and offering cloud platforms optimized for training and deploying AI models. With AI demand accelerating globally, Nebius has found itself sold out of compute capacity quarter after quarter.

The most compelling indicator of future growth lies in Nebius’ long-term contracts. The company recently secured a $3 billion agreement with Meta Platforms, spanning five years, to supply massive AI infrastructure. In addition, Nebius inked a multi-year deal with Microsoft worth up to $19.4 billion, underscoring its rising importance in the global AI supply chain.

With demand outpacing supply, Nebius expects to hit an annualized revenue run rate of $7 billion to $9 billion by 2026. If it achieves the midpoint—$8 billion—it would represent a staggering 6,700% increase from 2024.

Why Investors Are Buying the Dip

Nebius’ stock is currently down more than 30% from its October peak, largely due to short-term concerns about missed revenue targets and plans to sell up to 25 million new shares. The dilution fears are understandable, but they may also present a unique entry point for forward-looking investors.

High-growth infrastructure companies often accumulate significant upfront losses while building long-term assets. Nebius is no different. Between the rapid expansion of power capacity, rising hardware costs, and investments in massive-scale AI data centers, its financial strategy mirrors early-stage Amazon and early-cloud Microsoft—big spending with exponential long-term payoff.

If the AI megatrend continues on its projected path, Nebius could evolve into one of the foundational giants of the next technological era.

Competition Is Fierce—but Opportunity Is Bigger

That said, Nebius is not alone in the race. Microsoft plans to expand its AI capacity by more than 80% in 2025, while CoreWeave continues reinforcing its position in the AI cloud space. Both companies remain supply-constrained, signaling one crucial fact: global demand for compute is growing faster than anyone can build it.

The real winners in this environment will be companies that scale the fastest. Nebius’ aggressive expansion strategy—boosting contracted power to 2.5 GW by 2026—positions it as one of the potential leaders in this supply race.

The Bottom Line

Nebius may not yet be a household name like NVIDIA or Microsoft, but its fingerprints are all over the global AI infrastructure boom. For investors with a long-term perspective, its current dip may be less a warning sign and more an opportunity to enter during its scaling phase.

FAQ

1. What does Nebius Group specialize in?
Nebius builds high-performance AI data centers and develops cloud platforms optimized for AI model training and deployment.

2. Why is Nebius experiencing rapid growth?
Soaring global demand for GPU compute, along with billion-dollar contracts from Meta and Microsoft, has fueled massive expansion.

3. Why is the stock price down?
Short-term concerns about revenue targets and plans for additional share offerings have affected investor sentiment.

4. Is Nebius profitable?
Not yet. The company is prioritizing infrastructure expansion, which requires significant capital expenditure.

5. Is Nebius a good long-term investment?
Its growth potential is high due to AI demand, but investors must be comfortable with early-stage volatility.