What Makes Nebius Group N.V. (NBIS) a Good Investment?

Fred Alger Management, an investment management company, released its “Alger Spectra Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets continued their upward trajectory in the third quarter, with the S&P 500 Index rising 8.12%. A combination of improving economic conditions, solid corporate earnings, and growing expectations for monetary easing drove the strong performance. Against this backdrop, Class A shares of the Fund outperformed the Russell 3000 Growth Index during the third quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alger Spectra Fund highlighted stocks such as Nebius Group N.V. (NASDAQ:NBIS). Headquartered in Amsterdam, the Netherlands, Nebius Group N.V. (NASDAQ:NBIS) is a technology company. The one-month return of Nebius Group N.V. (NASDAQ:NBIS) was 93.91%, and its shares gained 564.57% of their value over the last 52 weeks. On November 10, 2025, Nebius Group N.V. (NASDAQ:NBIS) stock closed at $109.95 per share, with a market capitalization of $27.613 billion.

Alger Spectra Fund stated the following regarding Nebius Group N.V. (NASDAQ:NBIS) in its third quarter 2025 investor letter:

"Nebius Group N.V. (NASDAQ:NBIS) is a leading provider of AI infrastructure and cloud-based solutions, delivering specialized GPU computing capabilities designed to support large-scale AI workloads for enterprise and research clients globally. We find Nebius compelling due to its impressive growth trajectory and expanding deployment of advanced Nvidia GPU technology within data centers across Europe and North America, positioning it as a key beneficiary of accelerating AI adoption. During the period, shares contributed positively, aided by continued demand for AI compute and a landmark multi-year agreement with Microsoft. Under this deal, Nebius will supply dedicated GPU infrastructure to power Microsoft’s AI services, marking Nebius’s first long-term contract with a major cloud service provider. We believe this partnership not only validates Nebius’s technology and execution capabilities but also provides a significant revenue anchor, reinforcing its role as a critical player in the global AI infrastructure ecosystem."

Nebius Group N.V. (NASDAQ:NBIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Nebius Group N.V. (NASDAQ:NBIS) at the end of the second quarter, compared to 51 in the previous quarter. While we acknowledge the potential of Nebius Group N.V. (NASDAQ: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.

In another article, we covered Nebius Group N.V. (NASDAQ:NBIS) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.