Bullish Thesis on Nebius Group N.V. (NBIS) Highlights Low Risk and Substantial Upside Potential

Nebius Group N.V.'s (NBIS) share price is trading at $68.32, with a trailing and forward P/E of 75.96 and 68.49 respectively. The company has rapidly expanded its AI infrastructure business, with revenues surging 625% YoY to $105.1 million in Q2. Management is confident, raising ARR guidance to $900 million-$1.1 billion by year-end and plans to expand capacity to 220 MW this year and over 1 GW by 2026. While cash burn and competitive threats remain risks, NBIS offers investors leveraged exposure to the AI infrastructure cycle with substantial optionality.

Nebius Group N.V. (NBIS) reported its Q2 2025 financial results, showcasing a remarkable 625% year-over-year revenue surge to $105.1 million, driven by its expanding AI infrastructure business. The company's share price currently stands at $68.32, with a trailing P/E ratio of 75.96 and a forward P/E ratio of 68.49.

Management expressed confidence in the company's growth trajectory, raising annual recurring revenue (ARR) guidance to $900 million to $1.1 billion by year-end. The company plans to expand its capacity to 220 MW this year and over 1 GW by 2026, positioning it to capture a significant portion of the growing AI infrastructure market.

Despite the strong performance, Nebius Group faces challenges such as high cash burn and competitive threats. However, these risks are offset by the company's leveraged exposure to the AI infrastructure cycle, offering investors substantial optionality.

Several analysts have recently upgraded their ratings for Nebius Group. Northland Capital Markets gave it a "strong-buy" rating with a target price of $47.00, while Arete set a target price of $84.00. Despite these positive sentiments, the stock has traded down 5.2% in recent sessions, reflecting market volatility and uncertainty.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-corsair-capital-management-lp-acquires-new-holdings-in-nebius-group-nv-nbis-2025-08-29/
[2] https://www.ainvest.com/news/tsmc-path-2-trillion-market-cap-strategic-positioning-ai-era-undervalued-growth-potential-2508/