Nvidia Is a Massive Investor in the Genius Artificial Intelligence (AI) Stock Up 170% This Year

Nvidia just doesn't make GPUs and the various supporting equipment for these computing units. It's also an active investor. When it comes across a company it likes, it isn't afraid to invest. One company Nvidia has taken a major stake in is Nebius (NASDAQ: NBIS). It owns over 22 million shares of Nebius -- just shy of 10% of the company.

So far in 2026, this has proven to be a genius investment, as the stock is up roughly 170% this year at the time of this writing. However, Nvidia isn't investing in Nebius for this short-term gain. It has its eyes on much greater returns, and Nebius could easily deliver them with its superior growth rate.

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Nebius' growth is expected to be incredible

Nebius is a neocloud company that focuses on providing artificial intelligence (AI) computing power to its clients via the cloud. There is a major demand for Nebius' services, and it has signed several AI hyperscalers to its services, including Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META). It also has clients of all sizes, but these major companies drive the bulk of Nebius' growth.

Speaking of growth, Nebius is among the fastest-growing stocks in the market. In Q1 2026, it put up 684% revenue growth. That's not a typo or a boost from a one-time event like an acquisition. That's real demand that's driving jaw-dropping growth.

And Nebius isn't done there, either. For Q2, Wall Street expects 450% revenue growth and 539% for the remainder of 2026. Anyone who follows the AI industry also knows that there will be several more years of strong AI build-outs, and 2027 is also expected to be a monstrous year for Nebius. Wall Street estimates 238% revenue growth for 2027, which would bring the company's revenue total to about $11.5 billion. For reference, Nebius' revenue was a mere $530 million at the end of 2025.

Nvidia sees this huge growth, and likely the massive orders it's placing for its size, and has invested in it as a result. That should prompt investors to follow suit with Nvidia, which frankly has more information about Nebius and what it's doing than the market does, and consider an investment in Nebius. While it's not insider trading, it's pretty much insider investing, and when you see anyone on the inside load up on shares, it's a great sign that the stock is about to skyrocket. As a result, I think Nebius is a smart stock to buy now.

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.