Is Nebius Stock a Buy Now?
Is Nebius Stock a Buy Now?
Adria Cimino, The Motley FoolWed, March 18, 2026 at 6:30 AM UTC
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Key Points -
Nebius offers AI customers access to top chips and services to run their workloads.
Meta recently expanded its deal with Nebius to as much as $27 billion.
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Nebius Group (NASDAQ: NBIS) has soared in recent quarters as it is offering something critical to the artificial intelligence (AI) market: capacity for workloads. Demand has roared higher quarter after quarter, and revenue has followed.
The company delivered an annualized revenue run rate of $1.25 billion in 2025, and this year predicts it will reach $7 billion to $9 billion. Investors have applauded this performance, pushing Nebius stock to a 55% gain so far this year.
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Is this high-momentum stock a buy now? Let's find out.
Two people walk through a data center.
Image source: Getty Images.
The growing area of neocloud
Nebius is a player in a growing area known as neocloud -- these companies offer clients access to graphics processing units (GPUs) and related services as needed. They are highly focused on AI, which sets them apart from large cloud service providers such as Amazon and Microsoft, which offer AI and non-AI services.
Neoclouds are popular because they allow customers to run their AI workloads without investing in their own GPUs or building infrastructure. And in some cases, even companies that have built out infrastructure turn to Nebius due to their massive capacity needs. A great example of this is Meta Platforms, which recently expanded its earlier deal with the cloud provider.
As part of the new agreement, Nebius will allot $12 billion in capacity to Meta across various locations over five years. And Meta also has signed on to invest in additional capacity for as much as $15 billion, making the potential value of the deal $27 billion.
Nebius entered this market rather recently, with 2025 being its first complete calendar year of operations. The company's history includes the technology company Yandex, which sold its Russian assets in 2024 and then reorganized as Nebius. So Nebius has accomplished a great deal in a short period, establishing itself as a significant player in the neocloud market and earning the confidence of AI giants such as Meta.
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Demand tops supply
Now, let's return to our question: Is Nebius a stock to buy now, or has it climbed too far too fast? It's important to consider a few points. Nebius has said in recent quarters, including the latest one, that demand continues to surpass supply -- and peers confirm this, so it is the general trend. This shows that the need for capacity is strong and allows Nebius to sell future capacity right now.
The company has a strong balance sheet, with more than $3 billion in cash to support its growth. And much of Nebius' new capacity will be in the form of owned data centers, which is great for the company's cost structure over time.
All of this suggests strong demand is present and set to continue -- and Nebius is ready to address it. And this makes Nebius a great stock to buy at this stage of the AI story.
Should you buy stock in Nebius Group right now?
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Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
Source: “AOL Money”
