"Nebius ( NASDAQ:NBIS) is one of the AI infrastructure leaders that produces AI data centers and has the necessary energy for ambitious tech companies. While other neoclouds also check those boxes, Nebius' software stack helps it stand out, and investors have noticed. The stock has more than doubled over the past year, and recent Q4 results highlight the company's long-term potential. Despite a strong showing in 2025, the Nebius stock rally may be just getting started."
"The company went from $90 million in ARR in 2024 to $1.25 billion in ARR by the end of 2025, more than 14x growth. Nebius now anticipates up to $9 billion in ARR by the end of 2026, which suggests up to 7x growth. It's hard to imagine a company that achieved 14x growth in 2025 and 7x growth in 2026 will become stagnant in 2027. If the company's growth ranges from 2x to 3x in 2028, $20 billion in ARR is in play."
"Nebius has deals with Microsoft ( NASDAQ:MSFT | MSFT Price Prediction) and Meta Platforms ( NASDAQ:META). While the company didn't reveal the terms of the Meta Platforms deal, it agreed to a 5-year, $17.4 billion deal with Microsoft that can reach a valuation of up to $19.4 billion. Both deals imply more than $3 billion in annual recurring revenue for 300 megawatts."
Nebius builds AI data centers and secures large energy capacity for major tech customers. The stock more than doubled over the past year following strong Q4 results and standout 2025 performance. ARR expanded from $90 million in 2024 to $1.25 billion by the end of 2025, and management guides up to $9 billion ARR by the end of 2026. The company targets 3 gigawatts of contracted power by the end of 2026 to support lucrative AI deployments. A software stack aids model training and readiness, enabling multi-billion-dollar deals including a 5-year, $17.4 billion Microsoft agreement and an undisclosed Meta deal; both imply over $3 billion ARR for 300 megawatts.
Read at 24/7 Wall St.
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