Nebius Group N.V. (NBIS): A Bull Case Theory

We came across a bullish thesis on Nebius Group N.V. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on NBIS. Nebius Group N.V.'s share was trading at $53.69 as of July 17^th.

Nebius AI Cloud has rapidly emerged as a disruptive force in the datacenter market, scaling from inception to industry relevance faster than any competitor. Founded by Yandex co‑founder Arkady Volozh and a team of highly experienced engineers, Nebius has built deep expertise in deploying AI workloads with a focus on minimizing customers’ time to value.

Financial performance underscores its trajectory: Q1 2025 revenue surged 385% YoY to $55.3 M, while cost of revenue and product development expenses as a share of revenue fell sharply, demonstrating significant operating leverage gains typical of sticky, software‑driven businesses. Management attributes this growth to proprietary software, improvements in the sales process, and the rapid deployment of the latest GPUs.

Nebius’ hyperscale infrastructure enables customers to accelerate AI model training and time to market, strengthening its competitive position versus peers like IREN, whose attention remains split between Bitcoin mining and AI hardware optimization. Nebius continues to scale capacity aggressively, tripling its Finnish datacenter to 75 MW (supporting up to 60,000 GPUs), launching a 5 MW U.S. GPU cluster in Kansas City with 8x expansion potential, and adding a 10 MW colocation site in Iceland.

Despite high cash burn ($197.8 M in Q1 2025), Nebius maintains a solid balance sheet from Yandex divestitures and holds stakes in non‑core businesses for potential sale, providing seven quarters of operational runway. The company’s software‑driven model, rapid scaling, and team pedigree suggest the potential to become a default industry standard if operating leverage gains persist, presenting a compelling, high‑upside opportunity in the evolving AI infrastructure landscape.

Previously, we covered a bullish thesis on Nebius Group N.V. (NBIS) by Europe-Trader-1991 in May 2025, which highlighted surging revenue, major AI infrastructure expansion, and strong backing from NVIDIA and others. The stock has appreciated about 43% since then as AI demand exceeded expectations. The thesis still stands. Antonio Linares shares a similar view but emphasizes operating leverage gains and software-driven differentiation.

Nebius Group N.V. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held NBIS at the end of the first quarter which was 66 in the previous quarter. While we acknowledge the potential of NBIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.