Is Nebius Group Stock a Buy Now?

Core Insights - The rise of artificial intelligence (AI) has created significant opportunities for businesses and investors, with Nebius Group (NASDAQ: NBIS) being a notable beneficiary, as its shares have increased over 250% in 2025 through mid-September [1] - Nebius Group specializes in high-performance cloud computing infrastructure for AI systems, having severed ties with Russia after the Ukraine invasion [3] - The company reported a remarkable 625% year-over-year sales growth in Q2, reaching $105.1 million, driven by the demand for AI computing power [4] Company Overview - Nebius Group originated from Yandex, a Russian tech company, and has shifted its focus to AI infrastructure [3] - The company has subsidiaries in autonomous vehicles and education technology, but financial details for these segments are not disclosed [4] - The CEO of Nebius anticipates continued growth in the AI sector, aligning with industry predictions from Nvidia's CEO regarding the need for AI-specific infrastructure [5] Recent Developments - Microsoft has entered into a multi-year agreement with Nebius, valued in the billions, which is expected to enhance Nebius's revenue [6] - To meet the increasing demand for AI services, Nebius is rapidly expanding its capacity and constructing new data centers [7] Financial Considerations - In Q2, Nebius incurred $91.5 million in capital expenditures, marking a 49% increase year-over-year, while accumulating nearly $1 billion in debt, a significant rise from $6.1 million at the end of 2024 [7]