The Nebius Stock Rally Is Just Getting Started

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.

Nebius Has An Ambitious Team

Investors like to see growth, especially with companies that have lofty valuations. While value is in the eye of the beholder, Nebius’ lofty 43 price-to-sales ratio requires exceptional growth rates to remain viable. Luckily, Nebius delivers on that expectation.

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. 

The company is aiming for 3 gigawatts of contracted power by the end of 2026, and that energy is enough to land lucrative tech deals once Nebius builds the AI data centers.

Software Helps Nebius Win High-End Deals

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.

Part of the reason Nebius lands more lucrative deals than other AI data center providers is that the neocloud company also has a software stack. This software stack assists with training models and making them ready for intense AI workloads. 

Nebius isn’t just thriving due to its own software. The company has other software businesses and stakes in various companies that go beyond Nebius’ services. For instance, it owns commercial robotaxi service Avride and online coding bootcamp TripleTen. It also owns more than one-quarter of ClickHouse, a company that is worth approximately $15 billion, along with a big stake in data solutions provider Toloka. 

Nebius Has The Cash To Support Future Growth

Nebius is in the business of building AI data centers, having the necessary gigawatts, and integrating the software stack. Those three things require significant capital, but luckily, Nebius is prepared.

The company wrapped up Q4 with $3.7 billion in cash on its balance sheet. The cash position came along with Nebius’ first quarter of positive operating cash flow, which should boost liquidity.

Nebius also plans to raise money with corporate debt and asset-backed financing. The company’s at-the-market equity program also remains an option. Nebius has the cash and funding sources to support further growth. When Nebius’ contracts with big tech translate into high profits, it will be in a much better position to scale over time.