Nebius's Valuation Remains a Prosperous Prospect (Rating Enhancement)

Nebius Group N.V. (NASDAQ: NBIS) Reports Impressive Q2 Results and Strategic Advancements

Nebius Group N.V., a leading player in the AI infrastructure market, has delivered a series of impressive achievements in Q2 2025. The company, known for its NASDAQ ticker symbol NBIS, has demonstrated remarkable growth and strategic discipline that has caught the attention of investors.

In the Q2 results, Nebius showed a staggering 322% year-on-year (YoY) increase in top line growth. This growth is a testament to the company's ability to capture demand in a hypergrowth environment, separating Nebius from reactive, growth-at-any-cost plays.

One of the most significant advancements is that Nebius became EBITDA positive in its core AI infrastructure business, ahead of the projected schedule. This achievement underscores the company's commitment to optimising capital efficiency and minimising execution risk.

Nebius' strategic discipline has also enabled it to preserve its pricing power. By deliberately delaying short-term growth to align its next wave of capacity with Nvidia's new Blackwell chips, the company ensures it remains at the forefront of technological advancements. The new Blackwell chips are expected to deliver massive performance and efficiency gains to users.

The company's Cloud AI infrastructure grew by 9x YoY, thanks to strong demand for copper GPUs and near-peak utilisation of the Nebius platform. This growth has resulted in a record high gross profit margin of 71.36%, a significant expansion from 27.31%.

In recognition of these achievements and the company's potential for further growth, the author has upgraded their stance on Nebius Group N.V. (NASDAQ: NBIS) to a Strong Buy.

Despite large portions of the company's revenue being back-end weighted, Nebius may face short-term liquidity pressures due to the need to finance capacity expansions well in advance. However, the company has pre-secured 220MW of connected power for the end of 2025 and has a line of sight to 1GW by 2026.

The stock's fundamental improvement has actually improved the value opportunity. Since the initial coverage on the stock, it has surged 36% in the last month, but is believed to have gone much deeper into the buy zone. With the management raising its guidance on its year-end ARR to $1.1 billion, investors may find Nebius Group N.V. (NASDAQ: NBIS) an attractive prospect.

The leadership behind Nebius includes founder and CEO Arkady Volozh and COO Ophir Nave, among other executives. After reporting outstanding Q2 2025 results, with cloud infrastructure segment revenue increasing ninefold, Nebius’s stock has shown further gains on strategic partnership news in August 2025.