Key Points

Nebius is quickly expanding its data center capabilities.
The company's expansion phase could extend for multiple years.
10 stocks we like better than Nebius Group

If you seek one of the quickest expanding equities available, consider Nebius Group (NASDAQ: NBIS). Nebius operates as a neocloud provider focused on cloud services tailored for artificial intelligence workloads and model training.

With enormous interest in AI, this sector offers excellent opportunities.

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Nebius just posted remarkable growth figures, yet substantial AI demand remains ahead.

Image source: Getty Images.

Nebius expansion shows no signs of easing

In the first quarter ended March 31, Nebius posted a striking 684% growth rate. Such rapid increases often stem from large acquisitions or one-off events, but that does not apply here. The firm is aggressively scaling its data center infrastructure to satisfy surging needs for cloud-based AI processing capacity.

Nebius is constructing and purchasing facilities to support these tasks, particularly large-scale operations. At the close of 2025, it operated one data center site drawing 100 megawatts or higher. By the end of the first quarter, that number reached seven.

While notable, the company plans further increases. Nebius projects its annual run rate will rise from $1.25 billion at the end of 2025 (and $1.9 billion after Q1) to between $7 billion and $9 billion by the close of 2026. Few peers can match this pace, highlighting both intense demand for compute resources and the strength of Nebius offerings.

Nvidia has taken a stake in Nebius, underscoring its quality. Given the swift progress and stock performance, this appears a smart decision with additional upside possible.

Wall Street forecasts call for 551% revenue growth in 2026 and 224% in 2027. From the end of 2025 through 2027 projections, Nebius revenue could climb 2,011%. For context, the stock has risen 135% year to date in 2026.

Further gains may lie ahead, though risks exist. Nebius remains unprofitable and may stay so for a while. It pursues a large market opportunity aggressively, treating profits as secondary for now.

The firm is also adding debt, issuing shares, and attracting external capital to fuel expansion. These steps could reduce long-term investor returns, yet if Nebius achieves over 2,000% growth and attains profitability similar to established cloud providers, it represents an attractive holding at present.

Is Nebius Group stock a buy at this moment?

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Keithen Drury holds shares in Nebius Group and Nvidia. The Motley Fool holds positions in and recommends Nvidia. The Motley Fool maintains a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.