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Could Buying Nebius Stock Today Set You Up for Life?

newsfeedback@fool.com (Keithen Drury)
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⚡ Quantum Brief
AI cloud provider Nebius secured a $27B five-year deal with Meta, dwarfing its $530M trailing revenue, signaling explosive growth potential in AI infrastructure. Nvidia invested $2B in Nebius for early access to its cutting-edge tech, positioning Nebius as the premier platform for next-gen AI hardware deployment. Nebius’s asset-light model attracts giants like Microsoft and Meta, offering flexible AI computing capacity without heavy capital expenditure risks. Despite surging demand, Nebius remains unprofitable with a -765% gross margin, raising concerns about long-term sustainability amid aggressive expansion. Analysts warn of high risk but note potential for outsized returns if Nebius achieves projected growth and profitability, advising small position sizing.
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By Keithen Drury – Mar 21, 2026 at 12:00AM ESTKey PointsNebius expects huge growth over the next few years.Nvidia is offering early access to technology through Nebius.Nebius (NBIS 3.21%) has made some big splashes over the past few weeks. There have been several monster deals announced which have caused its stock price to rise, but it still could be a great value and offer significant upside over the next few years. But could it be enough to set you up for life? Let's find out. Image source: Getty Images. Nebius's platform is rising in popularity Nebius is essentially an artificial intelligence (AI)-focused cloud computing company. It's building data centers and renting out space from others to place its AI-focussed computing equipment in, renting out that capacity to individual developers and big corporations. While it may seem odd that large companies like Meta Platforms are building their own data centers to utilize Nebius's services, it allows them to maintain more of an asset-light approach in exchange for a slightly higher cost of computing. If AI isn't what everyone hopes it will be, this is a smart approach, which is why Nebius has major contracts with companies like Meta and Microsoft. These two both want to ensure they aren't overbuilding, so renting part of their computing capacity makes a lot of sense for them. ExpandNASDAQ: NBISNebius GroupToday's Change(-3.21%) $-3.90Current Price$117.62Key Data PointsMarket Cap$30BDay's Range$112.63 - $123.7252wk Range$18.31 - $141.10Volume17MAvg Vol14MGross Margin-765.63% Recently, Meta and Nebius announced a $27 billion deal that will span five years. This indicates monster growth, as Nebius has only generated $530 million in revenue over the past 12 months. On another note, Nebius also announced a partnership with Nvidia that involves Nvidia investing $2 billion in Nebius in exchange for Nebius gaining early access to Nvidia's latest technologies. This will make Nebius the go-to place to utilize the latest and greatest technology, making it a perfect company to partner with. With all of this huge growth expected to occur, is Nebius a stock that can set you up for life? Maybe. The biggest issue concerning Nebius right now is what its long-term outlook looks like. Right now, it's rapidly growing thanks to huge AI demand, but there will be a day when that demand isn't as widespread. Currently, Nebius isn't generating any profits because it's focused on expansion, and investors don't know what the long-term profit picture looks like. There are several examples of cloud computing giants delivering 30% or greater operating margins. If Nebius can deliver monster growth like they're forecasting and rise to a solid operating profile over the next few years, I have no doubt that Nebius could become a monster winner and deliver huge returns, but the risk is incredibly high. AI demand could burn out, and Nebius may never reach profitability, leading to a stock flop. As a result, I think investors can maintain a small position sizing in Neibus stock and benefit from its long-term growth trend. If it pans out, it will provide monstrous gains in your portfolio. If it flops, then the small position sizing will keep losses to a minimum.Read NextMar 20, 2026 •By Harsh ChauhanThe Good News Just Keeps Flowing in for Nebius Investors. Here's Why This AI Stock Could Jump 4X After the Meta Platforms Contract.Mar 20, 2026 •By Rick Orford3 Unstoppable AI Infrastructure Stocks to Buy Right Now With Less Than $1,000Mar 19, 2026 •By Adam SpataccoPrediction: This Neocloud Stock Will Outperform the "Magnificent Seven" in 2026Mar 19, 2026 •By Bram BerkowitzMeta Platforms Just Delivered Incredible News to This AI Data Center CompanyMar 18, 2026 •By David Jagielski, CPANebius Stock Just Reminded Investors About Its Biggest RiskMar 18, 2026 •By Adria CiminoIs Nebius Stock a Buy Now?About the AuthorKeithen Drury is a contributing Motley Fool technology analyst covering AI, semiconductors, cybersecurity, and SaaS stocks. In addition to The Motley Fool, Keithen is a mechanical engineer and has held roles at Honeywell and smaller industrial companies like Brand Hydraulics and Lincoln Industries. He holds a bachelor’s degree in mechanical engineering from Dordt University.TMFTripleOptionStocks MentionedNebius GroupNASDAQ: NBIS$116.61(-4.04%)-$4.91*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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