Why Shares of Nebius Group Are Soaring This Week

Key Points

• Nebius stock rose this week after one of its competitors inked a major deal with a company in the "Magnificent Seven."

• The multiyear, multibillion-dollar deal indicates continued demand for artificial intelligence (AI) infrastructure needed to run AI applications.

• Nebius also purchased land in Alabama this week that could be part of expansion plans.

• 10 stocks we like better than Nebius Group ›

Since the close of trading last week, shares of the artificial intelligence (AI) cloud company Nebius Group (NASDAQ: NBIS) had risen 16%, as of 10:18 a.m. ET today. The company has purchased new land that could signal expansion, and one of its competitors also just signed a major deal earlier this week.

Still plenty of fuel behind AI infrastructure

There's a lot of debate among investors regarding what inning of AI infrastructure buildout we are in. While no one knows for sure, there still appears to be a strong appetite for AI data centers. Earlier this week, CoreWeave, a competitor of Nebius, signed a new multiyear, $14 billion deal to provide capacity to Meta Platforms.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Image source: Getty Images.

While Nebius and CoreWeave compete, many of the hyperscalers use more than one AI data center, provider and if demand for AI infrastructure is still strong, it's good for everyone in the space. Kimberly Forrest, the chief investment officer for Bokeh Capital Partners, said the deal shows that demand for high-quality AI chips is "limitless."

Additionally, this week Nebius purchased 79 acres of land in Birmingham, Alabama, for $90 million that appears to be tied to a previous announcement from the company about U.S. expansion. M.V. Cunha, who runs a substack and a popular account on X and who has nailed bullish calls on Nebius, believes the company could use the newly purchased land to build new data centers with hundreds of megawatts of capacity.

It's not too late

Nebius has been a monster this year, with its stock up about 310%. That said, I think investors can still buy the stock, especially with the huge deal with Microsoft it announced recently. While I do have concerns about an AI slowdown at some point, Nebius still has a strong balance sheet, is likely to reach other big deals with hyperscalers, and also has other businesses like autonomous driving that could be valuable down the line.

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

Before you buy stock in Nebius Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $626,942!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,157,870!*

Now, it’s worth noting Stock Advisor’s total average return is 1,063% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 29, 2025

Bram Berkowitz has positions in Nebius Group. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. 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.