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

We came across a bullish thesis on Nebius Group N.V. on X.com by @MB_Hogan. In this article, we will summarize the bulls’ thesis on NBIS. Nebius Group N.V.'s share was trading at $100.43 as of January 28th. NBIS’s trailing P/E was 163.47 according to Yahoo Finance.

Nebius Group N.V., a technology company, engages in building full-stack infrastructure to service the global AI industry in the Netherlands, Europe, North America, and Israel. NBIS is presenting what appears to be an exceptional buying opportunity as its stock drops into the $80 range, despite widespread market pessimism fueled by recent misinformation.

The company has faced a coordinated FUD campaign, including false claims about Oracle data center delays—which were promptly corrected—and exaggerated narratives about space-based data centers, seemingly timed to support inflated SpaceX valuation expectations. Importantly, none of these events reflect any fundamental change in Nebius’s business.

The company continues to guide for an extraordinary 7–9 billion USD in annual recurring revenue (ARR) within the next 12 months, representing roughly a 700% increase from current levels, supported by 2.5 gigawatts of contracted capacity. Nebius’s growth trajectory is underpinned by strong underlying assets, including its strategic stake in ClickHouse, which alone is projected to approach half of Nebius’s current market capitalization within two years. This combination of massive ARR growth potential, highly valuable equity holdings, and market overreaction creates a compelling risk/reward scenario for investors.

While broader narratives and temporary market noise have pressured the stock, the fundamental drivers remain intact, offering a rare opportunity to acquire shares at a significant discount relative to their intrinsic value. For long-term investors, Nebius represents not only a high-growth technology play but also an undervalued portfolio of strategic assets that could deliver substantial upside as the market recognizes the company’s true potential. In short, the recent pullback appears to be a temporary dislocation, providing an attractive entry point for those willing to focus on Nebius’s exceptional fundamentals and transformative growth trajectory.

Previously, we covered a bullish thesis on Nebius Group N.V. (NBIS) by Oliver | MMMT Wealth in April 2025, which highlighted the company’s AI infrastructure ambitions, long-term GPU-driven scalability, undervaluation versus projected ARR, and hidden value from adjacent businesses like ClickHouse. NBIS’s stock price has appreciated by approximately 377.10% since our coverage due to strong execution and valuation rerating. @MB_Hogan shares a similar view but emphasizes market-driven FUD and near-term ARR acceleration as the key opportunity.

Nebius Group N.V. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held NBIS at the end of the third quarter which was 45 in the previous quarter. While we acknowledge the risk and potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NBIS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.