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Artificial intelligence (AI) infrastructure company Nebius Group N.V. (NBIS) has agreed to acquire Eigen AI for $643 million. It is expected to be a solid addition to the company's newly established managed inference platform, Nebius Token Factory, as Eigen’s inference and post-training optimization layers will be integrated into Token Factory.
Also, the acquisition accelerates Nebius’ U.S. expansion, as Eigen’s founding team is set to establish Nebius engineering and research presence in the San Francisco Bay Area.
Further, NBS has landed some big partnerships recently, which have led to a rise in stock prices. Last year, Nebius secured a multi-year partnership with Microsoft Corporation (MSFT) to deliver AI infrastructure via dedicated capacity from its new data center in Vineland, New Jersey.
This year, Nebius partnered with NVIDIA Corporation (NVDA), receiving a massive $2 billion investment commitment to deploy the next generation of hyperscale cloud. It also landed a five-year supply agreement with Meta Platforms (META) to provide $12 billion of dedicated capacity across multiple locations.
Nebius has been operating in a “capacity-scarcity world,” meaning demand for AI infrastructure is rising while capacity remains constrained. This has been a boon for Nebius, which is finding its footing in the AI space. In that search, the company also acquired Tavily, an agentic search provider, to capitalize on the exploding demand for agentic AI.
In light of this, it might be beneficial to take a look inside Nebius now.
About Nebius Stock
Nebius Group, based in Amsterdam, Netherlands, focuses on AI infrastructure as a technology firm. Its unified cloud platform enables the complete AI lifecycle, including data handling, model training, deployment, and runtime support. The company provides powerful GPU clusters and managed cloud services tailored for intensive AI tasks in sectors such as healthcare, robotics, finance, and media.
Through data centers in Europe, North America, and other regions, plus a worldwide setup of R&D and operations centers, it supports AI developers globally. The company has a market capitalization of $38.9 billion.
Nebius’ stock has skyrocketed over the past year due to explosive demand for its AI infrastructure services. Key drivers also include massive revenue growth from AI cloud computing, major contracts such as the Microsoft deal, and partnerships with Meta. Over the past 52 weeks, the stock has gained 594.6%, while it is up 110.8% year-to-date (YTD). It reached a 52-week high of $168.71 on April 16, and is up 4.6% from that level.
Additionally, Nebius carries a hefty price tag. On a forward-adjusted basis, its price-to-sales ratio is 11.99 times, higher than the industry average of 3.22 times.
Nebius’ Explosive Revenue Surge Amid Sold-Out AI Capacity
For the fourth quarter of fiscal 2025, Nebius experienced explosive growth, driven by continued robust demand for compute capacity. The company’s revenue increased by 547% year-over-year (YOY) to $227.70 million, as core AI cloud revenue grew more than 800% YOY to $214.20 million. Nebius’ ARR surged to $1.25 billion as of December-end, 2025. In addition to exceeding the $900 million to $1.10 billion outlook, ARR more than doubled from the $551 million reported as of the end of September.
The company is not yet profitable on a GAAP basis, as it is undertaking significant infrastructure scaling amid surging demand. The company is prioritizing rapid expansion of GPU clusters and data centers over short-term gains. Just how much demand Nebius faces is evident from the fact that it operated at peak utilization during Q4 and sold out its capacity. The company is on track to end the current year with ARR ranging from $7 billion to $9 billion as it caters to the world’s most demanding AI workloads.
Wall Street analysts have a mixed view regarding Nebius’ bottom line trajectory. For the current year, the company’s loss per share (on a diluted basis) is expected to deepen 37.9% YOY to $2.44, while for the next year, it is expected to improve by 45.1% to a loss per share of $1.34. For the first quarter (to be reported on May 18, before the market opens), Nebius is projected to report a loss of $0.81 per share.
Here’s What Analysts Think About Nebius Stock
This month, analysts at Wolfe Research initiated coverage of Nebius stock with a “Peerperform” rating and a fair value range of $80 to $170. While Wolfe Research analysts see merit in the company’s demand story following the Meta and Microsoft deals, they expressed caution regarding the execution and financing of the planned projects.
On the other hand, analysts at Cantor Fitzgerald initiated coverage of the stock with an “Overweight” rating and a $129 price target. Analysts highlighted its role as a full-stack AI cloud and GPU compute platform, capitalizing on booming enterprise AI demand. Last month, BofA Securities analysts gave Nebius a bullish “Buy” rating and set a $150 price target, signaling strong positive sentiment about the company’s outlook.
Nebius has come into the spotlight, with analysts awarding it a consensus “Moderate Buy” rating overall. Of the 15 analysts rating the stock, a majority of nine analysts have given it a “Strong Buy” rating, one analyst suggests “Moderate Buy,” while five analysts are playing it safe with a “Hold” rating. The consensus price target of $172.54 represents 2.2% downside from current levels. However, the Street-high price target of $215 indicates a 21.9% upside potential.
