Nebius Stock Price Forecast - NBIS Stock Rockets 764% to $123.53 After $19.4B Microsoft AI Partnership

Nebius Group (NASDAQ:NBIS) Skyrockets 764% as AI Infrastructure Demand Redefines the Market

Nebius Group (NASDAQ:NBIS) has become one of 2025’s most remarkable stories in the AI infrastructure space, with its stock trading around $123.53 after a surge of 764% over the past year and 345% year-to-date. The company’s market capitalization has ballooned to $31.38 billion, driven by unprecedented momentum in GPU-based cloud infrastructure and its game-changing $19.4 billion Microsoft AI partnership. Nebius is now positioning itself not merely as a service provider but as a foundational pillar for the next generation of AI compute ecosystems.

Transformation From Yandex Legacy to AI Compute Powerhouse

Originally emerging from Yandex’s technology backbone, Nebius rebranded and established itself in Amsterdam to target the Western AI infrastructure market directly. The company’s mission has evolved beyond GPU rentals — it now delivers vertically integrated cloud solutions optimized for generative AI, robotics, and data-intensive computing. Its business model integrates hardware ownership, custom thermal designs, and proprietary orchestration software, creating a defensible moat in high-performance cloud systems. In Q2 2025 alone, Nebius recorded revenue of $105.1 million, a massive 625% jump year-over-year, underscoring its explosive scale-up from a regional player to a global contender.

Financial Performance and Revenue Explosion

Nebius’s financials show a company in hypergrowth mode. The firm’s trailing twelve-month revenue now stands at $249.3 million, with analysts expecting a 392% annual increase this year and up to $1.68 billion in 2026. The company’s profit margin of 97.67% is striking, reflecting the efficiency of its data infrastructure and licensing operations. Despite heavy investment in data centers and GPU clusters, Nebius maintains a strong liquidity position with $1.68 billion in cash, versus $1.22 billion in total debt, resulting in a manageable 32.43% debt-to-equity ratio. Operating cash flow remains negative at –$499.5 million, as the company prioritizes aggressive expansion to secure long-term market dominance.

Microsoft’s $19.4 Billion Deal Reinforces Long-Term Growth

The landmark Microsoft partnership, valued initially at $17.4 billion and expandable to $19.4 billion, marks a defining moment for Nebius. Under the agreement, Nebius will supply dedicated GPU and AI capacity to Microsoft’s Azure infrastructure from its new Vineland, New Jersey facility through 2031. This deal effectively positions Nebius as one of the few non-hyperscaler providers capable of supporting enterprise-grade AI workloads at scale. It also unlocks recurring revenue streams and utilization guarantees, providing visibility that most mid-cap AI companies lack. Market reaction to the deal propelled NBIS stock from under $100 to above $120 in just a few sessions, reflecting investor conviction that Nebius is entering the tier of mission-critical AI suppliers alongside NVIDIA and CoreWeave.

AI Data Centers, GPU Density, and Next-Gen Compute Expansion

Nebius’s infrastructure scale is expanding at a breakneck pace. With capacity surpassing 78,000 GPUs across its global network and power density approaching 100MW, the company is targeting efficiency levels previously associated only with hyperscalers like Amazon Web Services or Google Cloud. The new data centers in Kansas City, New Jersey, and Europe are expected to further reduce latency for high-frequency inference tasks and LLM training, making Nebius a preferred provider for customers needing real-time AI model deployment. The firm’s integration of NVIDIA Blackwell GPUs in 2025 will further increase compute performance per rack, while enabling cost-optimized AI workloads across multiple cloud tenants.

Segment Highlights: Nebius.AI, Toloka, TripleTen, and Avride

Nebius’s structure extends beyond GPU clusters into four key business units. Nebius.AI, the company’s flagship full-stack cloud platform, is on track to exceed $600 million in annual recurring revenue (ARR) by the end of 2025, commanding roughly half of total group valuation. Toloka, its AI data-labeling subsidiary, has posted 140% year-over-year growth and plays a critical role in safe AI model training and reinforcement learning optimization. TripleTen, its education and reskilling division, adds a smaller but strategic $250 million valuation, supporting AI workforce training. Meanwhile, Avride, Nebius’s autonomous systems arm, has logged over 200,000 pilot deliveries, developing ground and air-based delivery systems projected to capture a $3.5 billion valuation in its own right.