Nebius is expected to see faster revenue growth next year, driven by its huge order book.
The company’s capacity expansion plans should support its increased revenue growth in 2026.
Although the stock is expensive, it is still capable of increasing impressively next year due to the significant sales increase it is about to generate.
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Nebio Group(NASDAQ: NBIS) has made investors significantly richer over the past year. An investment of just $100 in shares of this neocloud company is now worth just over $266.
The 166% gains that Nebius achieved during this period have been driven by growing demand for artificial intelligence (AI) computing power in data centers. It aims to establish dedicated AI data centers equipped with powerful graphics processing units (GPUs) of NVIDIAas well as server processors amd and Intelto deliver high performance computing.
But can the company maintain its rally over the next year, especially considering concerns about heavy spending on AI infrastructure? Let’s find out.
Image source: Getty Images.
Nebius rents its computing power to customers who require it to run AI workloads, store AI-related data in the cloud, train large language models (LLM), develop custom AI solutions, and run AI inference solutions. More importantly, the company goes beyond simply providing the hardware. It is a complete artificial intelligence company that offers managed software services that allow customers to create and tune models and inference applications.
As such, it is positioned to capitalize on two key aspects of the AI ​​market.
First, hyperscalers and AI companies are looking to acquire computing power to run AI workloads in the cloud. There is a shortfall in available AI computing power, which is why major cloud computing companies are unable to fulfill their contracts. As a result, contractual delays for these companies have skyrocketed.
Second, an increasing number of businesses, governments, and AI companies are likely to develop and deploy AI applications, both for internal use and for customers. This is because technology is generating productivity gains for companies that adopt it. Market research firm IDC estimates that every dollar spent on AI in 2030 could generate $4.60 in value.
This should pave the way for Nebius to continue growing at a rapid pace over the next year, given the comprehensive nature of its services. Its revenue in the first nine months of 2025 soared 437% to $302 million. Additionally, Nebius also reduced its adjusted net loss by 61% during this period to $170 million.
Management expects to achieve annualized run-rate revenue of $7 billion to $9 billion by the end of 2026. It calculates this metric by multiplying revenue in the last month of the quarter by 12. This means sales in December 2026 could reach $750 million. That’s significantly higher than what the company has generated so far in 2025.
By comparison, Nebius is expected to close 2025 with $556 million in revenue, up 374% from last year. Analysts expect top-line growth to accelerate to $3.3 billion in 2026.
Therefore, Nebius’ revenue could increase six-fold next year. This ambitious goal seems achievable because the company has secured a couple of important contracts for Metaplatforms and microsoft which are likely to fuel its growth in 2026. These two companies alone have created a revenue backlog of over $20 billion for the company.
As a result, Nebius now plans to increase its connected data center capacity to a range of 800 megawatts (MW) to 1 gigawatt by the end of 2026. That would be a significant increase from the 220 MW of connected power it projects by the end of 2025. This significant capacity expansion should support the incredible revenue growth that analysts expect from the company next year.
But will this breakneck growth be enough to send the stock higher?
The stock’s astonishing rally over the past year is why it now trades at a pricey 65 times sales. That’s much higher than the U.S. technology sector’s average price-to-sales (P/S) ratio of 9.
But of course, the hot growth of Nebius, which will improve next year, justifies its valuation. In fact, the company’s forward sales multiples are significantly lower due to the massive growth it is expected to generate.
NBIS PS Ratio data (forward) from YCharts.
Even if Nebius trades at a significant discount of 10 times sales (almost in line with the technology sector average) next year and generates $3.3 billion in revenue, its market capitalization could reach $33 billion. That points to potential gains of 33% from current levels. However, this AI stock could offer more than that, as it is likely to enjoy a premium valuation due to its huge backlog, which could help it beat Wall Street’s revenue expectations for 2026.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Advanced Micro Devices, Intel, 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.
Where Will Nebius Stock Be in 1 Year? was originally published by The Motley Fool
