Forget Nebius Group Stock: This Quiet AI Leader Looks Like the Smarter Buy Today

• Nebius' valuation has reached a level that could marque further near-term gains difficult.

• Nebius volition besides request to instrumentality connected much indebtedness and merchantability much shares to money further information halfway construction.

• Investors looking for much attractively valued AI infrastructure stocks should see this institution that's amended known for its PCs.

• 10 stocks we similar amended than Dell Technologies ›

Neocloud supplier Nebius Group (NASDAQ: NBIS) has been 1 of the hottest stocks connected the marketplace successful 2025, rising by an unthinkable 223% twelvemonth to date. That terrific surge was a effect of the rapidly increasing request for artificial quality (AI) information halfway infrastructure, which is outpacing proviso by a ample margin.

The bully portion is that shares of Nebius look to person much upside to connection successful the coming year, according to Wall Street analysts. However, the banal has experienced a important pullback successful the past mates of months. Let's spot wherefore that has been the case.

Nebius has shed astir a 3rd of its worth since hitting a 52-week precocious connected Oct. 10. That whitethorn look astonishing considering the unthinkable gait astatine which it's growing: In the archetypal 9 months of 2025, gross changeable up by 437% to $302 million. It besides has a monolithic backlog that should let it to prolong its momentum.

It is worthy noting that Nebius has rented retired each of its disposable information halfway capacity. It expects to summation its connected information halfway powerfulness capableness to a scope of 800 megawatts (MW) to 1 gigawatt (GW) by the extremity of adjacent twelvemonth -- a important leap from its existent capableness of 220 MW.

This assertive enlargement program should assistance Nebius person a sizable chunk of its $20 billion-plus backlog into gross adjacent twelvemonth and implicit the longer run. However, the banal whitethorn inactive beryllium prone to important volatility for a mates of reasons.

First, it's trading astatine an costly premium of 64 times sales. For comparison, the tech-heavy Nasdaq Composite index's price-to-sales ratio is conscionable 5.5. Of course, Nebius has a large capable backlog that it could yet turn its apical enactment by capable to warrant its existent stock price, but to bash that, it volition request to unafraid the backing to bring much capableness online.

This brings america to the 2nd crushed wherefore Nebius appears to beryllium a risky concern astatine present. The institution was sitting connected $4.8 cardinal successful currency astatine the extremity of the erstwhile quarter, portion its indebtedness stood astatine $4.6 billion. To enactment its information halfway buildout plans, it's going to request considerably much money. Constructing a 1 GW information halfway costs an estimated $10 billion, positive different $20 cardinal to $30 cardinal for the chips to powerfulness it.