This AI Stock Is Trading at a Massive Discount Despite Red-Hot Growth
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By Keithen Drury – Feb 2, 2026 at 4:15PM ESTKey PointsNebius offers a full-stack solution to its clients.The stock looks cheap when valued using 2026 estimates. NASDAQ: NBISNebius GroupMarket Cap$21BToday's Changeangle-down(3.49%) $2.97Current Price$88.16Price as of February 2, 2026 at 4:00 PM ETNebius is slated for huge growth in 2026.Finding an artificial intelligence (AI) trading at a sizable discount isn't that common. There is a ton of hype in this industry, and investors need to be careful not get caught up in it. However, there are a few areas that aren't quite fully valued yet, giving savvy investors a chance to scoop up potentially huge winners at a solid discount. One stock I think is rather cheap is Nebius Group (NBIS +3.49%). Nebius may look overvalued, but only if you don't factor in the monster growth management is already telling us about. Image source: Getty Images. Nebius should deliver explosive growth in 2026 Nebius's business model is very similar to a cloud computing one pioneered by big tech companies over a decade ago. Nebius owns and rents out space in data centers, where it puts cutting-edge graphics processing units (GPUs) from Nvidia. Then it rents out its capabilities to clients so they can train and run artificial intelligence models. Because it offers a full-stack solution, clients don't need to add ancillary services to make it work; they can get everything they need from Nebius. ExpandNASDAQ: NBISNebius GroupToday's Change(3.49%) $2.97Current Price$88.16Key Data PointsMarket Cap$21BDay's Range$84.22 - $89.2552wk Range$18.31 - $141.10Volume10MAvg Vol16MGross Margin-1312.43% That's a huge advantage, which is why it's expected to grow at a ludicrous speed in 2026. At the end of the third quarter of 2025, Nebius had an annual run rate of $551 million. By the end of 2026, that figure is expected to be between $7 billion and $9 billion. That's huge growth, and it isn't fully priced into the stock yet. At first look, Nebius stock looks expensive at 60 times sales. NBIS PS Ratio data by YCharts However, that's using trailing revenue. If you know a company's growth is going to explode in the next year, that's the wrong measure to use. If you value the stock using analyst revenue projections, then it's trading dirt-cheap. NBIS PS Ratio (Forward) data by YCharts At less than 7 times projected sales, Nebius stock looks like an absolute bargain. However, there's one item investors must keep in mind. Nebius isn't profitable. It's going all-in on building out its AI computing capacity to capture market opportunity. This is a wise strategy, but the company will need to turn a profit eventually to be viewed more favorably by the market. Fortunately, several cloud computing companies have already reached scale, and a healthy operating margin isn't out of the question once Nebius is fully mature. That will take a few years, but I think the market will ultimately take notice and send Nebius shares soaring.Read NextJan 27, 2026 •By Leo SunForget Nebius Group: This Hyper-Growth Cloud Platform Is a Far Better Way to Play the AI BoomJan 25, 2026 •By Adria CiminoIs Nebius Group Stock Going To $0?Jan 23, 2026 •By Rick OrfordIs Nebius Stock Still a Buy After Its Explosive Rally?Jan 21, 2026 •By Adria CiminoThis AI Cloud Specialist Is Poised for a Decade of Explosive GrowthJan 21, 2026 •By Leo Sun3 Top Tech Stocks That Could Make You a MillionaireJan 21, 2026 •By Patrick SandersThe Ultimate Growth Stock to Buy With $1,000 Right NowAbout 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$88.16 (+0.03%) $+2.97*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.