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Nebius Group N.V. Outperforms IREN Limited in AI Infrastructure Race
ByAinvest
Saturday, Oct 11, 2025 12:16 am ET1min read
IREN Limited and Nebius Group are two hot names in the AI infrastructure race. Nebius Group has rallied triple digits in the past year, while IREN has also seen significant gains. Nebius is likely the best AI stock to own due to its strong performance and potential for future growth.
In the rapidly evolving landscape of AI infrastructure, two companies have emerged as standout performers: Nebius Group (NASDAQ: NBIS) and IREN Limited. Both have seen significant stock price surges in recent months, but which one is the better investment? This article aims to provide a comparative analysis based on the latest financial data and market trends.Nebius Group
Nebius Group has experienced a meteoric rise in 2025, with its stock price climbing over 350% year-to-date. The company's 52-week range spans from $14.09 to $117.65, reflecting its high volatility and explosive growth [1]. In September, Nebius inked a $17.4 billion AI infrastructure contract with Microsoft, which triggered a 44% stock jump to record levels [1]. This deal, which can expand to $19.4 billion, underscores the surging demand for AI data centers.
Nebius's Q2 2025 revenue was $105.1 million, up 625% year-over-year, reflecting the AI computing boom [1]. Analysts project revenue to hit $4.25 billion by 2027, with positive EBITDA by 2026 [1]. The company has guided for $1 billion in annual recurring revenue by 2026 and turning EBITDA-positive that year [1].
IREN Limited
IREN Limited, formerly a Bitcoin mining company, has also seen remarkable growth. Its stock price has surged nearly 900% over the past six months, primarily due to its strategic pivot towards AI cloud services [2]. IREN's AI Cloud division is on track to surpass $500 million in annualized recurring revenue (ARR) by the first quarter of 2026 [2].
In September, IREN disclosed that it had doubled its GPU fleet by acquiring 7,100 NVIDIA B300s, 4,200 NVIDIA B200s, and 1,100 AMD MI350Xs, representing a total investment of $674 million [2]. This expansion has led the company to raise its AI cloud ARR guidance to $500 million by January, a substantial increase from its previous forecast of $250 million by December [2].
Which is the Better Investment?
Both companies have shown strong performance and significant growth potential. Nebius Group's deal with Microsoft and its strong revenue growth make it an attractive investment. However, IREN Limited's rapid expansion of its GPU fleet and its position in the AI infrastructure market also present compelling opportunities.
Ultimately, the choice between Nebius Group and IREN Limited will depend on an investor's risk tolerance and investment goals. Nebius Group's established partnerships and revenue growth make it a safer bet, while IREN Limited's rapid expansion and high growth potential could offer more significant returns.
References
[1] https://ts2.tech/en/nebius-groups-meteoric-rise-17b-microsoft-ai-deal-propels-stock-to-new-highs-whats-behind-the-hype/
[2] https://theoutpost.ai/news-story/iren-s-explosive-growth-from-bitcoin-miner-to-ai-infrastructure-powerhouse-20725/
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