Think It's Too Late to Buy Nebius Group? Here's the 1 Reason Why There's Still Time.

Key Points

• Nebius shocked investors by announcing a huge new deal with Microsoft.

• Nebius isn't the only AI infrastructure company inking big deals for data center capacity.

• When demand greatly exceeds supply, that's a big green flag for investors.

• 10 stocks we like better than Nebius Group ›

Nebius Group (NASDAQ: NBIS) recently caught the eyes of many investors who follow the artificial intelligence (AI) sector. The AI neocloud company announced a huge deal with tech giant Microsoft (NASDAQ: MSFT), and its shares soared nearly 50% the next day.

That was great news for Nebius shareholders, but investors who hadn't gotten involved beforehand might wonder if, after that monster move, it's too late to jump into the stock. I think not, because there's one compelling reason to believe that there are more gains to come.

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Image source: Nebius Group.

Building data center capacity to meet demand

Nebius provides advanced cloud computing services designed for artificial intelligence (AI) workloads. That a hyperscale cloud provider like Microsoft would desire Nebius' data center AI infrastructure capacity should be eye-opening for investors. The deal is worth up to $19.4 billion, which is more than Nebius' total market cap was at the time of the announcement. It shows how much demand there is for the AI infrastructure Nebius provides.

With demand so far outpacing supply, Nebius Group should be announcing more deals like this. Proof of that demand is the reason investors should look into buying Nebius shares. Just this week, it was revealed that Nvidia has placed a $6.3 billion order with cloud AI infrastructure provider CoreWeave.

That came on the heels of news that tech giant Oracle expects its cloud infrastructure revenue to soar eightfold over the next four years. Oracle also said it signed four multibillion-dollar contracts with three different customers in its most recent fiscal quarter.

That type of activity and spending should continue. And it's the reason that Nebius stock still looks attractive even after its recent move higher.

Should you invest $1,000 in Nebius Group right now?

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Howard Smith has positions in Microsoft, Nebius Group, and Nvidia and has the following options: short October 2025 $160 calls on Nvidia. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Oracle. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.