Nebius Group (NASDAQ: NBIS) delivered a staggering 684% revenue growth rate in the first quarter ended March 31, driven entirely by organic expansion rather than acquisitions or one-time effects.
The company is rapidly scaling its data center footprint to meet surging demand for cloud-based AI computing power, a market showing no signs of slowing.
At the end of 2025, Nebius operated just one data center site consuming 100 megawatts or more of power, a figure that jumped to seven sites by the close of the first quarter alone.
That expansion pace is extraordinary by any measure, and the company has made clear it has no intention of pulling back on its build-out strategy.
Nebius projects its annual revenue run rate will climb from $1.25 billion at the end of 2025, and $1.9 billion at the close of Q1, to between $7 billion and $9 billion by the end of 2026.
Few companies anywhere in the technology sector can credibly project that kind of acceleration while simultaneously demonstrating real-world demand at scale.
The quality of Nebius’s product has attracted attention at the highest levels of the industry, with Nvidia itself holding an investment in the company.
Wall Street analysts are forecasting 551% revenue growth for full-year 2026, followed by an additional 224% expansion in 2027, which would represent cumulative growth of roughly 2,011% from the end of 2025.
Nebius’s stock has already climbed 135% so far in 2026, yet analysts suggest the share price may not have fully caught up with the underlying business trajectory.
The investment case is not without meaningful risks, as Nebius remains unprofitable and is unlikely to reach profitability in the near term given its aggressive expansion posture.
To fund its growth ambitions, the company is taking on debt, issuing new stock, and seeking outside investors, moves that could weigh on long-term shareholder returns.
However, if Nebius can sustain its growth trajectory and eventually reach the profitability margins typical of established cloud computing firms, the current valuation may still represent a compelling entry point for investors willing to tolerate near-term uncertainty.
