Prediction: This Artificial Intelligence action (IA) will be the next fam name for 2031

Key Points

• AI trading is largely dominated by a small number of large-cap technology giants.

• A small data center company that works closely with Gate could quickly emerge as the next big opportunity in AI.

• 10 actions we like more than Grupo Nebius ›

In recent years, companies like Gate, Amazon, Alphabet, Microsoft, and Meta Platforms have dominated the narrative around artificial intelligence (IA). As the conversation shifted beyond chips to adjacent applications in data centers and software, names like Broadcom, Taiwan Semiconductor Manufacturing, and Palantir Technologies also entered the scene.

It is no secret that AI trading remains highly concentrated within a small circle of tech giants. But savvy investors know that opportunities do not end with the usual suspects.

So, here is the question: Have you heard of the Nebius Group (NASDAQ: NBIS)? If not, you are not alone.

This extensive data center company has gone unnoticed, but its unique position in the AI ecosystem could catapult it into the spotlight and make it a household name very soon.

Nebius took an unconventional route to the AI revolution

Unlike many of its louder peers, Nebius did not emerge as a flashy startup or an established tech titan already entrenched in the AI race. Instead, the company has its roots in Yandex, a Russian internet conglomerate.

As geopolitical tensions from the Russia-Ukraine war escalated, Yandex moved to divest its non-essential assets. From that process, Nebius was spun off and went public on the Nasdaq last October.

Shortly after, Nebius completed a fundraising round that attracted a particularly notable participant: Gate. The undisputed leader in AI chips not only became an investor but also established itself as a strategic ally, lending Nebius a level of credibility that few companies can claim.

At its core, Nebius can be considered a next-generation cloud: a business specialized in building AI infrastructure by constructing data centers and renting the coveted graphics processing units (GPU) from Gate to other companies via the cloud. This model positions Nebius to scale in sync with Gate, benefiting as next-generation chips like Blackwell and Rubin enter the market.

Nebius is more than GPUs

While infrastructure is its main business, Nebius operates several subsidiaries and also has notable strategic investments.

Toloka is dedicated to data labeling, an important component of training datasets for AI models. The company also has exposure to autonomous driving systems and robotics through Avride and maintains a software platform called TripleTen that specializes in educating developers on various AI applications.

Nebius also has an equity stake in ClickHouse, an open-source database management and analytics system.

This diversified ecosystem positions Nebius beyond chips and provides the company with exposure to several potentially billion-dollar auxiliary markets as AI workloads become larger and more advanced.

Is Nebius's action a buy right now?

In December 2024, Nebius's central infrastructure segment closed the year with an annualized run rate of $90 million. Just two quarters later on ( June 30, ), the company's annual recurring revenue run rate ( ARR ) increased to $430 million. Even more compelling is that management recently raised the full-year guidance to a range of $900 million to $1.1 billion from its previous outlook of $750 million to $1 billion.

However, on September 8, everything changed for Nebius when it was announced that the company signed a new massive agreement with Microsoft. According to regulatory filings, Nebius “will provide Microsoft access to dedicated GPU infrastructure capacity” at its data center in New Jersey. The contract is valued at $17.4 billion and extends until 2031.

Before the agreement with Microsoft, Nebius had a market capitalization of $15.4 billion, implying a future price-to-sales ratio of approximately 14 at the high end of its ARR forecast. For context, that is about half the multiple that CoreWeave reached at its peak earlier this year after its highly publicized initial public offering.

This suggests a couple of conclusions. On one hand, Nebius's valuation has been dragged down by the broader bullish narrative of AI, leaving traces of exuberance. On the other hand, the action has remained relatively isolated from the sharp declines observed in more volatile pairs like CoreWeave, a dynamic that could work in its favor as it continues to struggle for attention in an increasingly crowded and competitive market.

Looking ahead, Nebius appears to be well-positioned to benefit from the secular winds driving AI infrastructure. The new agreement with Microsoft emphasizes that cloud hyperscalers show no signs of slowing down in their capital expenditures, and Nebius is already steadily carving its way as a beneficiary of that spending.

I believe that Nebius will quote materially higher than it is today over the next decade as its relationship with Microsoft matures. That makes it, in my opinion, a compelling buy-and-hold opportunity.

Should you invest $1,000 in Grupo Nebius right now?

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*Stock Advisor Returns as of September 8, 2025*

Disclaimer: For informational purposes only. Past performance is not indicative of future results.