Is Nebius the Next Amazon?

Amazon (NASDAQ: AMZN) is a legendary company. It started by selling books, but evolved into a company that sells nearly everything and can deliver it to your door. Not only has it dominated e-commerce, but it has also become a major player in the tech space with its massive Amazon Web Services (AWS) cloud computing platform. AWS accounts for the majority of Amazon's profits, and this segment is a bigger deal than many realize.

It has become such a big growth story that investors are searching for what company could be the next Amazon, at least in the cloud computing realm. One that has popped up recently is Nebius (NASDAQ: NBIS). Does Nebius have what it takes to become the next Amazon? Or is that a bar that no other company can reach?

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Cloud computing plays a huge role in AI

Cloud computing was popular even before the AI race kicked off in 2023, but it's even more relevant now. The idea behind the technology is simple: Build a data center, fill it with computing equipment, then rent out that computing equipment. AWS has been used to run engineering simulations, host websites, and perform many other tasks that most companies don't have the computing power for. But because it's accessible through the cloud, the computing options are endless for nearly any company of any size.

Cloud computing is widely popular in the AI realm because most AI startups don't have the funding to build their own data centers. While building a data center and filling it with your own equipment is cheaper over the long run, it takes time and expertise to do that. It's far easier to just rent computing capacity on a cloud computing platform, which is what most AI startups have done.

However, some cloud computing infrastructure isn't necessarily optimized for AI computing, which is where a company like Nebius comes in. Nebius is focused on using the most cutting-edge computing equipment available and offering everything necessary to get up and running quickly. This full-stack solution is incredibly popular among AI developers, and there's a reason demand for Nebius' product is exploding.

At the end of 2025, Nebius had annual recurring revenue of $1.25 billion. For 2026, that number is expected to reach between $7 billion and $9 billion. That's monster growth in just one year, and it shows how quickly Nebius' computing capacity is being used up once available.

So is this enough to challenge AWS for cloud computing supremacy?

Amazon has designed its own chips to compete

Amazon isn't sitting idle in this battle. It also offers top-notch computing equipment and has gone so far as to design its own in-house chips that can offer competitive performance at a lower price tag. AWS's custom chips now have an annual run rate of $10 billion and are growing at a triple-digit pace. So not only does AWS have a thriving base business, but its in-house chip business is already larger than Nebius right now.

To say Nebius will be the next Amazon is a fairly large stretch. Amazon is doing quite well, and there are no signs of it faltering. In fact, AWS just posted its best quarter in over three years (in terms of revenue growth) during the fourth quarter.

Nebius is doing great in its own right, but it's hardly a blip on Amazon's radar. If Nebius can grow to a respectable size and produce operating margins on par with Amazon, then it will be a huge success.

If you're looking for a way to play the AI infrastructure game, investing in Nebius and Amazon can be a genius move, as you have the steadiness and solid growth of Amazon combined with the rocketship growth of Nebius. I think both of these stocks will be huge winners this year, and right now, it looks like a prime buying opportunity.

Keithen Drury has positions in Amazon and Nebius Group. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.