Should You Buy the Dip on Nebius Group?

Artificial intelligence (AI) could be the biggest secular growth story of the decade and beyond. The global AI market is projected to be worth $3.5 trillion by 2033, expanding at a blistering compound annual growth rate of 31.5%. Amsterdam-based Nebius Group (NASDAQ: NBIS), a soup-to-nuts AI infrastructure provider, is quietly building the foundation of the AI revolution -- and growing by leaps and bounds.

Through the first nine months of 2025, revenue is up 437%, compared to the year-ago period. Third-quarter revenue exploded 355% higher to $146 million but fell short of Wall Street's expectations. As of Nov. 18, the stock is down over 30% from its all-time high notched in mid-October.

Here's why I've been buying the dip.

Image source: Nebius Group

The growth story is intact

Nebius builds AI data centers equipped with high-performance Nvidia graphics processing units (GPUs) (Nvidia has a stake in the company), and it provides cloud software that helps organizations run AI models. Its solutions are in high demand. Nebius just inked a $3 billion deal with Meta Platforms to deliver AI infrastructure over five years.

In September, Nebius signed a multiyear deal with Microsoft worth up to $19.4 billion. As of Q3, Nebius' compute capacity was sold out.

By the end of 2026, Nebius expects to hit an annualized revenue run rate of $7 billion to $9 billion. Companies use this metric to give investors a sense of their future yearly revenue. If Nebius could hit the midpoint of $8 billion in revenue for 2027, it would be a 6,700% increase from 2024 revenue.

That kind of early-stage growth comes at a price. Nebius is incurring large losses and announced plans to sell up to 25 million shares of common stock, raising concerns about share dilution. In my opinion, however, the ends justify the means, as long as the growth is there -- and it clearly is. If the AI story plays out as projected, Nebius has the potential to be a wealth-generating machine for patient investors.

Josh Cable has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.