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Manali Pradhan, CFA, The Motley Fool
Sat, May 23, 2026 astatine 7:50 AM CDT 4 min read
Chipmaker Nvidia (NASDAQ: NVDA) remains the poster kid of the artificial quality (AI) revolution, and adjacent from its lofty perch arsenic the world's largest company, it has gained astir 20% truthful acold successful 2026. However, different AI banal has delivered acold stronger returns: Shares of Nebius (NASDAQ: NBIS), a fast-growing information halfway infrastructure player, person surged by astir 143% implicit the aforesaid period.
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected a little-known company, called an "Indispensable Monopoly," providing the captious exertion Nvidia and Intel some need. Continue »
Nvidia besides appears assured astir Nebius' maturation prospects. In March 2026, it announced a strategical concern and agreed to put $2 cardinal successful Nebius for an astir 8.3% ownership involvement successful the company. Under this partnership, Nvidia volition supply the AI processors that volition let Nebius to deploy much than 5 gigawatts of information halfway capableness by 2030.
Robust financials
Nebius is focused connected gathering information halfway infrastructure that's optimized for AI training, inference (running AI models successful existent time), and emerging agentic AI workloads (in which AI systems autonomously execute multistep tasks).
The company's astir caller fiscal study highlights its concern momentum. In the archetypal quarter, revenues surged 684% twelvemonth implicit twelvemonth to $399 million. Nebius' AI concern performed adjacent better, with gross increasing by 841% twelvemonth implicit twelvemonth to $390 million, accounting for 98% of full sales. The AI concern exited the archetypal 4th with annualized tally complaint gross (an annualized projection based connected its latest quarterly revenue) of $1.9 billion, up by much than 50% sequentially. Management present expects revenues of betwixt $3 cardinal and $3.4 cardinal and an adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) borderline of astir 40% successful 2026.
Strong lawsuit basal
Nebius sold retired its disposable information halfway capableness successful the archetypal quarter, with request continuing to transcend supply. That imbalance is giving the institution important pricing power.
Nebius' increasing lawsuit basal is different large strength. Meta Platforms and Microsoft are large clients. The company's precocious expanded woody with Meta Platforms is valued astatine $27 cardinal implicit 5 years and could go adjacent much invaluable if request for AI processing capableness remains strong. The company's AI infrastructure woody with Microsoft is worthy $17.4 cardinal implicit 5 years. Nebius besides remains connected docket with its Microsoft-related capableness commitments. Management notes that some deals could springiness the institution entree to billions of dollars successful financing astatine charismatic rates to grow its unreality infrastructure.
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