{"id":143431,"date":"2026-06-02T10:57:07","date_gmt":"2026-06-02T13:57:07","guid":{"rendered":"https:\/\/ubirataonline.com.br\/nebius-is-targeting-540-data-center-revenue-growth-by-year-end-2-reasons-the-stock-could-still-be-undervalued\/"},"modified":"2026-06-02T10:57:16","modified_gmt":"2026-06-02T13:57:16","slug":"nebius-is-targeting-540-data-center-revenue-growth-by-year-end-2-reasons-the-stock-could-still-be-undervalued","status":"publish","type":"post","link":"https:\/\/ubirataonline.com.br\/en\/nebius-is-targeting-540-data-center-revenue-growth-by-year-end-2-reasons-the-stock-could-still-be-undervalued\/","title":{"rendered":"Nebius Is Targeting 540% Data Center Revenue Growth by Year-End. 2 Reasons the Stock Could Still Be Undervalued."},"content":{"rendered":"

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Nebius Group<\/strong> (NASDAQ: NBIS)<\/span> has been winning big from the artificial intelligence (AI) data center boom, and that’s not surprising, as the company plays a central role in the AI infrastructure ecosystem.<\/p>\n

Nebius is a neocloud provider that builds dedicated AI data centers equipped with powerful graphics cards. Not surprisingly, Nebius is growing at a stunning pace, as hyperscalers and AI companies have been lining up to rent cloud computing capacity from the company. Investors, however, may be wondering if it still makes sense to buy this cloud computing stock<\/a> following its stunning rally this year.<\/p>\n

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After all, Nebius is now trading at 80 times sales. That’s quite exorbitant compared to the tech-focused Nasdaq Composite<\/strong> index’s price-to-sales ratio of 5.6. However, a closer look at Nebius’ revenue pipeline, business model, and the overlooked opportunities it can capitalize on indicates that it is still undervalued.<\/p>\n

Let’s take a closer look at two reasons why AI stock could indeed be undervalued even after its phenomenal rally.<\/p>\n

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Image source: The Motley Fool. <\/figcaption><\/figure>\n

Nebius’ revenue growth rate is poised to multiply significantly this year <\/h2>\n

Nebius finished 2025 with annualized run rate revenue (ARR) of $1.25 billion. That was a 14x increase over its ARR at the end of 2024. Nebius calculates its ARR by multiplying its AI cloud revenue from the last month of a quarter by 12. The company anticipates that it will exit 2026 with an ARR of $7 billion to $9 billion.<\/p>\n

The midpoint of that guidance range suggests that Nebius’ ARR will increase by 540% by the end of 2026, as compared to the reading at the end of 2025. Nebius can easily achieve that growth since it has a large revenue backlog to fulfill. Specifically, Nebius has signed contracts worth more than $46 billion<\/a> with Meta Platforms<\/strong> and Microsoft<\/strong> for providing dedicated AI data center capacity over the next five years. Even better, Nebius’ cloud revenue pipeline increased by 3.5x quarter over quarter in Q1, excluding the deals it has signed with hyperscalers such as Meta and Microsoft.<\/p>\n

Nebius expects $3.2 billion in revenue in 2026. Its massive backlog and improving revenue pipeline make it clear why analysts are forecasting exponential revenue growth over the next couple of years.<\/p>\n<\/p><\/div>\n