Why Nebius Stock Soared Again in October

Core Viewpoint - Nebius Group has seen its stock quadruple in 2025, driven by strong demand for AI infrastructure and a significant agreement with Microsoft worth up to $19.4 billion, leading to a market cap increase from approximately $15 billion to $28 billion [1][7]. Group 1: Company Performance - Nebius stock gained 16.5% in October, contributing to its quadrupling in value this year [2]. - The company has made substantial progress towards its goal of achieving an annualized revenue run rate of up to $1 billion by year-end, despite initial first-quarter revenue of only $55 million [5]. - The stock price reached $111.28, with a market cap of $28 billion, reflecting investor confidence following the Microsoft deal [6][7]. Group 2: AI Infrastructure Demand - Nebius is strategically positioned to support AI innovators, having developed large-scale, vertically integrated AI infrastructure assets [3]. - The company operates extensive GPU clusters across Europe and the U.S., offering a cloud platform that combines the capabilities of hyperscalers with supercomputer features necessary for AI applications [4]. Group 3: Future Outlook and Risks - The long-term contract with Microsoft is seen as a precursor to more agreements, which has attracted investor interest [8]. - However, there is uncertainty regarding future AI spending, as potential pullbacks from large tech companies could impact the sector [9]. - The stock's valuation is heavily reliant on future deal announcements, which could lead to volatility [10].