The Fastest-Growing AI Stock Looks Like a Brilliant Buy (It's Also a Nvidia Investment)

Fast-growing stocks and artificial intelligence (AI) seem to go hand in hand, and there are several examples of stocks growing their revenue at 50%, 100%, or even 200%. But none quite touch how rapidly Nebius (NASDAQ: NBIS) is growing. During its most recent quarter, revenue rose by a jaw-dropping 454% year over year. What's even more impressive is that this growth rate is expected to last through the rest of the year, and 2027's will also be elevated.

It's starting to make a lot of sense that Nvidia (NASDAQ: NVDA) is investing in Nebius, and there's still a great buying opportunity here for investors.

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Nebius is primed to grow some more

Nebius is a neocloud business that provides AI-focused cloud computing power to its clients. Among its biggest clients are Meta Platforms and Microsoft, each of which has signed multi-year deals with Nebius to expand capacity. Both Microsoft and Meta have their own data centers, and Microsoft rents out its capacity to others, so why are they renting from Nebius?

Nebius' deal with Nvidia provides it with leading hardware before others, so it's a way to gain early access to the best computing units. Furthermore, these companies like having a bit of flexibility and not having to build too many data centers, as well as getting their hands on as much computing capacity as quickly as possible.

These and other deals have led to incredible growth, with Nebius' coming in at 454% this past quarter. For the full year, Wall Street analysts expect an impressive 531% growth. While growth is expected to slow in 2027, analysts still expect a very strong 258% growth, so there's clearly a lot more ahead for Nebius.

This growth can push Nebius stock to new heights, but only if the market cooperates. Nebius isn't a profitable business, and if the market values profits over growth, the stock may not be a success story. However, growing as fast as possible is in Nebius' best interest, as this is a generational opportunity to capture computing market share. This could cause Nebius' stock to be a late bloomer if it takes a while for the market to respect it once it becomes profitable. But its growth could lead to incredible returns if investors are patient.

I think Nebius could be one of the biggest long-term winners in the AI arms race, but investors have to stay patient. The company is rapidly expanding, and the stock price may be volatile, but the result will likely be a major winner.

Keithen Drury has positions in Meta Platforms, Microsoft, Nebius Group, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.