Stock-Split Watch: Is Nebius Group Next?

Nebius Group, formerly Yandex N.V., re-listed on Nasdaq in October 2024 as a full-stack AI cloud platform provider after divesting its Russian operations. The company's stock has surged over 500% since its return, fueled by robust demand for AI infrastructure, reporting Q2 revenue of $105.1 million (up 625% YoY) and achieving adjusted EBITDA profitability. Significant funding, including a $1.15 billion public offering and $3.16 billion in convertible notes, supports its ambitious data center expansion, while a five-year, $19.4 billion deal with Microsoft for Azure GPU capacity highlights its strategic market positioning.

Analysis

Nebius Group (NBIS), the rebranded entity of Yandex N.V., successfully re-listed on Nasdaq in October 2024, pivoting to a full-stack AI cloud platform after divesting its Russian assets due to sanctions. This strategic repositioning has driven exceptional market performance, with the stock appreciating over 500% since its return and 347% year-to-date in 2025, reflecting strong investor confidence in its AI-centric model.

Financially, Nebius reported Q2 revenue of $105.1 million, a 625% year-over-year increase, and achieved adjusted EBITDA profitability, signaling robust operational momentum. The company has secured significant funding, including a $1.15 billion public offering and $3.16 billion in convertible notes, to fuel its aggressive data center expansion plans, aiming for 1 gigawatt of cloud computing capacity by next year across multiple international locations.

A key strategic win is the five-year, $19.4 billion deal with Microsoft to provide dedicated GPU capacity for Azure, which alone boosted Nebius's stock by 200%. This partnership highlights the company's critical role in supplying essential infrastructure for the exploding AI market, leveraging its extensive Nvidia GPU-powered platform. While the company demonstrates strong growth and strategic partnerships, its current stock price of around $125 is not yet considered a candidate for a stock split.

Key Decisions for Investors

• Investors should evaluate Nebius Group's strong growth potential in the AI cloud market, driven by its strategic Microsoft partnership and ambitious data center expansion plans.
• Monitor the company's operational execution, particularly its ability to scale infrastructure and sustain adjusted EBITDA profitability amidst rapid expansion.
• Consider the stock's significant recent appreciation and potential volatility, acknowledging that a prominent analyst team did not include it in their top recommendations.