Nebius Group N.V. (NBIS) Stock Analysis

Nebius Group’s principal competitive advantage lies in its vertically integrated, AI-specialized infrastructure. Unlike generalist cloud providers such as Amazon AWS, Microsoft Azure, and Google Cloud, Nebius designs both its hardware and software stack in-house, optimizing for AI workloads. This results in approximately 20% lower total cost of ownership versus industry averages, as evidenced by its flagship Finnish data center’s power usage effectiveness (PUE) of 1.1 and 10 GWh of energy savings in 2024.

The company’s early and deep partnership with NVIDIA is a further differentiator. Nebius is among the first in Europe to deploy NVIDIA’s Blackwell GPUs at scale, giving it a time-to-market and performance edge over rivals. Its rapid capacity expansion—targeting 1 gigawatt of power by 2026—positions it to capture surging AI compute demand, while its ARR per megawatt ($5–6 million, Q2 2025) is at the high end of the sector.

Customer satisfaction is reflected in rapid revenue growth (625% YoY in Q2 2025) and a roster that includes Cloudflare, Shopify, and leading AI startups. The company’s culture emphasizes engineering excellence and sustainability, with 94% of electricity from low-carbon sources and nearly 100% hardware recycling.

Risks include capital intensity, dependence on NVIDIA, and competition from hyperscalers and focused peers like CoreWeave. However, Nebius’s full-stack approach, cost leadership, and execution to date provide a credible, durable edge.