Fast Moving Nebius is on Track to Billions in Revenues

The company’s 385% Q1 revenue growth is starting to generate buzz on Wall Street

Nebius Group NBIS 0.00%↑ just reported first quarter operating performance that’s sure to catch the eye of the investment community.

As a quick refresher, Nebius Group’s core business is a rapidly-growing global network of artificial intelligence (AI) data centers.

The company is rapidly emerging as a global player focused on the beating heart of AI: infrastructure. 

Nebius doesn’t just sell AI - - it builds the roads, bridges, and power plants that AI needs to thrive.

At its core, Nebius is an AI-centric cloud platform, a kind of digital workshop where machine learning practitioners can sculpt their models without worrying about the messy logistics of compute power, storage, or scaling. 

Picture a bustling laboratory where 400+ AI engineers tinker with proprietary cloud architecture and in-house-designed hardware - - servers, racks, routers, power sources - - even entire data center configurations.

They’re not just using NVIDIA’s cutting-edge GPUs; they’re partnering with NVIDIA, getting early access to game-changers like the Blackwell platform to ensure their clients are always a step ahead.

But Nebius isn’t a one-trick AI data center pony. 

It’s a holding company with a constellation of various AI-related businesses - - management’s intuitive bets on where the AI economy is headed. 

There’s Toloka which provides high-quality training data for generative AI models. 

For many years, Toloka has been a trusted data partner for Big Tech leaders, including Anthropic, Amazon, Microsoft, Shopify, and more.

Think of Toloka as the meticulous librarian who gathers, organizes, and refines the vital raw material - - data - - that AI systems need to learn and perform. 

Toloka offers services like data labeling, annotation, and collection, often leveraging a global crowd-sourcing platform to handle tasks such as image classification, text analysis, or audio transcription.

Toloka’s future looks so promising that the Nebius subsidiary just weeks ago attracted a new $72 million investment from Amazon founder Jeff Bezos and Shopify Chief Technology Officer Mikhail Parakhin.

There’s also TripleTen, an edtech platform re-skilling people for tech careers.

By empowering people to join the tech revolution, TripleTen is quietly retraining and reshaping the workforce, one worker at a time.

Then there’s Avride - - Nebius’ autonomous driving arm - - which is developing cutting edge tech used in self-driving cars and delivery bots.

Avride is a high tech moonshot that could drive Nebius shares significantly higher if the company can secure the strategic investments and partnerships that management is currently pursuing.

And last - - but certainly not least - - Nebius also owns a 28% stake in ClickHouse - an open-source database management system that allows users to perform real-time analytics on large amounts of data. 

A recent article on May 9 published by The Information suggested that Clickhouse has been in talks to raise new funding at a $6 billion valuation.

Which is meaningful since that valuation, if achieved, would value Nebius’ current 28% stake in Clickhouse at more than $1.5 billion.

Each of these subsidiaries would be valuable as a standalone entity.

But in today’s quarterly letter to shareholders, Nebius CEO Arkady Volozh stated the following:

“We plan to fund our growth in part by tapping into our non-core businesses and equity stakes. We are not aware of any other company in our sector that can raise potentially billions of dollars in this way.”

And Nebius core data center business is ramping up FAST.

Starting with a single data center in Finland , Nebius is currently expanding globally with new data centers in Paris, Kansas City, and New Jersey.  

Nebius Data Center in Mäntsälä, Finland

And most recently, Nebius started expanding into the Middle East, with reports in local Israeli news outlets saying that Nebius will build and operate a $140 million national supercomputer in Israel.

In total, Nebius plans to invest $2 billion or more in global AI infrastructure in 2025

And the workhorse powering this new infrastructure will be the highly sought-after Nvidia Blackwell GPU (AI computer chip).

This rapid global data center expansion - - and the addition of the new Blackwell chips - - will fuel significant revenue growth over the coming quarters and years.

In fact, I continue to expect Nebius to be one of the fastest growing AI stocks over the next several years.

Nebius racked up $55.3 million in revenues in the first quarter of 2025.

Revenues increased 385% compared to the prior year’s first quarter.

That means Nebius is already one of the fastest growing AI stocks in the stock market today.

But the Nebius growth story is just getting started.

You could even say the growth story is early in its first chapter.

At this early stage it's all about boosting data center GPU power capacity.

And designing GPU clusters which process massive amounts of data faster and more efficiently than competing data centers.

When I issued my initial report on Nebius for Equity Empire subscribers in early December, I posted on X.com that Nebius was one of the fastest growing AI stocks that very few people had heard of.

 Well, six months have passed and the growth story is only now starting to get recognized by the investing public.

But if Nebius management continues to execute as soundly as they did in the first quarter, the company’s growth story is going to get a whole lot more investor attention as the year unfolds.

And that means Nebius shares, which are already up 28% from my initial report, could trade at significantly higher prices over the course of the year.

(and continue to outperform the broad small cap stock index like they have since I posted my first NBIS report)

For future updates on Nebius and other exciting growth stocks going forward, make sure to subscribe to Equity Empire.

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John McHugh