Nebius Group is making waves in the AI infrastructure market by offering GPU-as-a-service solutions. With a recent $17.4 billion deal with Microsoft, Nebius has solidified its position alongside peers like Oracle and CoreWeave. The company’s stock has surged 39% since announcing the partnership.
However, investors may wonder if Nebius stock is overvalued. By looking at its pro forma revenue, we can see that it trades at an implied forward price-to-sales ratio of 4.6, which is discounted compared to peers like Oracle and CoreWeave.
But there are caveats: customer churn due to competitive pressures and the complexity of comparing Nebius’ future ARR to its peers’. The AI infrastructure market is evolving rapidly, making it essential to consider these factors when evaluating Nebius stock.
Despite this, Nebius appears attractively valued relative to its peers, and its validation alongside brand-name peers makes it a compelling buy-and-hold opportunity. With structural demand tailwinds driving the AI infrastructure narrative forward, Nebius is poised for continued growth.
Source: https://www.fool.com/investing/2025/09/19/microsoft-just-gave-investors-174-billion-reasons