Is Nebius Group a Buy?

Company Overview - Nebius Group (NASDAQ: NBIS) has experienced significant stock performance, increasing approximately 465% since its Nasdaq debut in October 2022 [2] - The company specializes in data centers designed for large language models (LLM) that support AI applications [2] Business Background - Nebius was formed from assets previously owned by Yandex, which were separated due to U.S. sanctions following Russia's invasion of Ukraine, in a deal valued at $5.4 billion [3] - The company is headquartered in Amsterdam and has raised $700 million in financing, with Nvidia as a key partner [4] Data Center Operations - Nebius operates six data center locations, including facilities in Finland and New Jersey, equipped with Nvidia's latest graphics processing units (GPUs) [4][7] - The company provides tools for developers to build and enhance AI models, positioning itself competitively in the AI infrastructure market [5] Financial Performance - In Q2 2025, Nebius reported revenue of $105 million, reflecting a 625% year-over-year increase, although adjusted net loss rose to $91.5 million from $61.5 million in Q2 2024 [6] - Management has increased revenue guidance to an annual run-rate of $900 million to $1.1 billion by the end of 2025 [6] Strategic Partnerships - Nebius recently announced a multi-year, multi-billion dollar deal with Microsoft, contributing to its stock surge [7]