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Nebius Emerges as Top AI Stock to Own Amid Infrastructure Race with IREN
ByAinvest
Thursday, Oct 9, 2025 9:00 am ET1min read
IREN Limited and Nebius Group N.V. are two popular names in the AI infrastructure race. IREN has rallied triple digits in the past year, but Nebius is likely the best AI stock to own due to its strong growth potential.
In the rapidly evolving landscape of AI infrastructure, two companies have emerged as notable players: IREN Limited and Nebius Group N.V. While IREN has experienced a remarkable stock rally, Nebius is often cited as the better AI stock to own due to its strong growth potential.IREN Limited's Explosive Growth
IREN Limited, formerly a Bitcoin mining company, has undergone a significant transformation. Over the past six months, its stock price has surged nearly 900% [1]. This growth is attributed to the company's strategic pivot towards AI cloud services. IREN's expansion has been driven by multi-year contracts with leading AI companies and a substantial increase in its GPU fleet. The company aims to achieve $500 million in annualized recurring revenue (ARR) from its AI cloud division by the first quarter of 2026 [1].
However, IREN's rapid ascent has also sparked valuation concerns. Despite its impressive growth, the company's market capitalization has soared to $15.7 billion, which is notable given its relatively modest revenue of over $500 million over the past 12 months [1].
Nebius Group N.V.: The Potential AI Stock
Nebius Group N.V. is another significant player in the AI infrastructure market. While it does not have the same level of public attention as IREN, many investors view Nebius as having strong growth potential. The company's focus on providing AI infrastructure services and its strategic partnerships with major tech companies have positioned it well in the market.
Nebius's growth has been steady and sustainable, with consistent revenue growth and a strong balance sheet. The company's focus on innovation and its ability to adapt to the evolving AI landscape make it an attractive investment for those looking to capitalize on the AI infrastructure boom.
Conclusion
Both IREN Limited and Nebius Group N.V. have significant potential in the AI infrastructure market. IREN's rapid growth and strategic pivot have made it a darling of the investment community, but its valuation remains a concern. Nebius, on the other hand, offers a more sustainable growth trajectory with strong fundamentals. The choice between the two depends on an investor's risk tolerance and their view on the AI infrastructure market.
References
[1] https://theoutpost.ai/news-story/iren-s-explosive-growth-from-bitcoin-miner-to-ai-infrastructure-powerhouse-20725/
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