This Technology Stock Could Turn $1,000 Into $10,000
Key Points
Nebius is benefiting from the ongoing shortages in AI infrastructure capacity.
The company plans to rapidly expand data center capacity.
Demand visibility is high for the company.
- 10 stocks we like better than Nebius Group ›
Nebius (NASDAQ: NBIS) is a full-stack artificial intelligence (AI) infrastructure company. Through its cloud platform, it provides enterprises with on-demand access to high-end graphics processing units (GPUs) for training and inferencing AI models.
Image source: Getty Images.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Shares of the Amsterdam-based company have soared by more than 207% so far this year (as of the close of trading Dec. 30) and could rally further in the coming months. In fact, a $1,000 investment in this stock could grow to be worth $10,000 by 2031.
Growth drivers
Electricity availability remains one of the chief bottlenecks in the global AI infrastructure buildout. To address this constraint for itself, Nebius in November announced that it aims to secure 2.5 gigawatts of contracted power by the end of 2026, up from the 1 gigawatt it said it was aiming for as recently as August. The company has also already presold much of the capacity at its soon-to-be-opened data centers in the United Kingdom and Israel, which are being fitted with Nvidia's latest Blackwell GPUs.
So far, Nebius has also demonstrated strong execution, quickly converting its new capacity into revenue. Third-quarter revenues soared by 355% year over year to $146 million as it fully sold its available capacity.
Nebius also enjoys exceptional demand visibility. The company has entered into a $3 billion, five-year deal to supply processing power to Meta Platforms and a $17.4 billion, five-year deal with Microsoft. Based on its outlook, the company is aiming for an annualized run rate of between $7 billion and $9 billion by the end of 2026.
Analysts forecast that Nebius' revenues will surge from an expected $555.9 million in 2025 to $27.1 billion in 2031. Currently, the company trades at a lofty valuation of nearly 64 times sales, but consider this. Suppose its top line follows its expected growth path and its P/S multiple gradually compresses to 8.5 in 2031 -- in line with the valuation of an average data center real estate investment trust (REIT). Under this reasonably plausible scenario, the company's market capitalization would be above $230 billion. That's more than 10 times its current market capitalization of $21.4 billion (as of Dec. 30), which would make Nebius a 10-bagger stock.
Should you buy stock 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 $505,749!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,149,658!*
Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 31, 2025.
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool 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.
Recommended Articles
