Adam Spatacco, The Motley Fool

Sat, May 17, 2025, 7:05 AM5 min read

• Nvidia and Amazon founder Jeff Bezos are both investors in AI data center company Nebius Group.

• Nebius is involved with Nvidia's Blackwell GPU rollout across Europe and the U.S.

• Rising infrastructure spend from cloud hyperscalers bodes well for the future growth prospects of Nebius.

• 10 stocks we like better than Nebius Group ›

When it comes to data center stocks, you may be more familiar with the likes of Vertiv or CoreWeave. Indeed, both of those companies are heavily plugged into the world of artificial intelligence (AI) infrastructure.

However, one of my top stock picks for 2025 is an under-the-radar data center player called Nebius Group (NASDAQ: NBIS).

If you're unfamiliar with Nebius, rest easy. With the support of Nvidia and billionaire investor and Amazon founder Jeff Bezos, Nebius has a lot going for it. With earnings right around the corner on May 20, now may be the time to pounce on this emerging AI star.

Nebius is actually a spinoff from a Russian internet conglomerate called Yandex. Following Yandex's divestiture of the Nebius asset, the company listed on the Nasdaq stock exchange and subsequently raised $700 million through a private placement in which Nvidia participated.

Nebius is involved with several different businesses. While its primary focus is outfitting data centers with the latest GPU architecture, the company also operates an AI services business called Toloka -- which recently raised funding from Bezos Expeditions.

Back in February, Nebius reported financial results for the fourth quarter and full calendar year 2024. During the fourth quarter, the company generated $37.9 million in revenue -- up 466% year over year. The AI infrastructure represented over half of this revenue -- growing by more than 600% annually.

While these figures are encouraging, I think the Nebius rocket ship hasn't even taken off yet. Management told investors that annual recurring revenue (ARR) reached $90 million in December. If that figure is uninspiring, don't worry.

Per the company's guidance, ARR by the end of the first quarter is expected to be "at least $220 million" -- more than double December's ARR. Moreover, management is forecasting ARR by year-end to be in the range of $750 million to $1 billion.

But how exactly is the company going to reach these targets and scale by this magnitude? Well, consider the fact that Nebius is heavily involved in the rollout of Nvidia's latest GPU architecture, dubbed Blackwell, across Europe and the U.S.