The company is benefiting from the AI data center boom by offering dedicated AI data centers with high-end GPUs and leasing capacity to hyperscalers and AI firms, fueling rapid growth.

Nebius Group (NBIS) is a neocloud company building and operating dedicated AI data centers, renting compute capacity, and providing software tools to enable end-to-end AI development and deployment.

Nebius is aggressively expanding capacity toward 800 MW to 1 GW of connected data center capacity by year-end 2026, up from 170 MW at end-2025, with cloud capacity deliveries to Meta Platforms and Microsoft expected in late 2026.

The company projects strong long-term growth, targeting 5 GW of active data center capacity by end-2030, up from about 4 GW contracted in 2026, converting contracted capacity into revenue through ongoing build-out and software services.

Nebius has secured a substantial backlog, including more than $46 billion in contracts with Meta Platforms and Microsoft for five years of capacity, and its cloud revenue pipeline grew 3.5x sequentially in Q1, supporting optimistic growth projections.

Analysts are bullish on Nebius’s long-term profitability, supported by a reported revenue backlog exceeding $46 billion from contracts with Meta and Microsoft, with potential upside from new contracts and accelerated capacity expansion.

The stock has appreciated meaningfully, buoyed by strong demand for AI data center capacity, with revenue growth and margin improvements highlighted in the first quarter of 2026.

Nebius also offers a software stack for AI development, inference, and tokenized access to LLMs, which is expected to grow as a larger part of revenue and has already lifted EBITDA margins (adjusted EBITDA margin of 32% in Q1 2026, up from negative a year prior).

Nebius finished 2025 with ARR of $1.25 billion and is guiding to exit 2026 with ARR between $7 billion and $9 billion, implying about 540% ARR growth by year-end 2026 versus 2025.

A bull case envisions Nebius reaching a market cap near $163 billion by 2028 from a hypothetical $20.4 billion revenue and an 8x sales multiple, potentially putting the stock above $600 within three years.

Even if 2028 revenue hits $20.4 billion, the market cap could approach about $114 billion using Nasdaq-like sales multiples, underscoring substantial upside from today’s levels.

Taken together, Nebius’s integrated data-center and software-led approach, large-scale capacity expansion, and sizeable revenue backlog could drive significant stock upside over the next three years.