Nebius: The GPU Infrastructure Rival Poised to Surge in 2026

The Emerging Contender in Cloud Computing

CoreWeave has captured significant attention as a leading cloud infrastructure provider serving AI workloads, but it’s far from alone in the competition. Nebius (NASDAQ: NBIS), spun out from Russia’s Yandex following geopolitical disruptions, represents a formidable rival in the GPU-intensive cloud computing space. Both companies operate full-stack platforms delivering graphics processing units and computational capacity to hyperscalers unable to handle their processing demands in-house.

The strategic advantage of outsourcing to separate entities like Nebius and CoreWeave (NASDAQ: CRWV) extends beyond pure capacity—it mitigates infrastructure concentration risk. Yet Nebius distinguishes itself with an aggressive expansion roadmap that could reshape its market position throughout 2026.

The Numbers Tell a Compelling Story

Nebius’s Q3 performance provides concrete evidence of market momentum. Revenue surged 355% year-over-year, with an annualized run rate of $551 million. That’s just the beginning. By 2026’s conclusion, management projects this figure will land somewhere between $7 billion and $9 billion—a staggering leap that reflects the insatiable demand for AI computing resources.

To support this trajectory, Nebius is scaling infrastructure dramatically. The company increased its contracted power capacity from 1 gigawatt to 2.5 gigawatts, signaling management’s conviction in sustained demand. For growth-focused investors, these metrics are intoxicating—if execution matches guidance, the stock appreciation potential could be extraordinary.

Valuation: Why the Price Tag Isn’t As Steep As It Appears

At 64 times sales, Nebius initially appears overvalued. However, this misses the critical context. When evaluating unprofitable, high-growth enterprises, the forward sales multiple becomes the relevant metric. A company expanding revenues from $551 million to potentially $9 billion annually commands a different valuation framework than static businesses.

CoreWeave will likely exceed Nebius in absolute scale by year-end 2026, but Nebius could replicate CoreWeave’s growth arc if AI spending momentum persists. This parallel trajectory creates compelling upside scenarios for Nebius shareholders.

The Profitability Question

Both Nebius and CoreWeave currently prioritize market capture over earnings. They’re in a growth-at-all-costs phase, consuming capital to expand faster than competitors. This strategy works temporarily, but durability requires eventual profitability.

The relevant comparison point: mature cloud operators like Amazon Web Services achieve 35% operating margins. If either rival achieved AWS-like efficiency, the financial profile would transform dramatically. Mature SaaS companies with comparable margins typically command valuations around 10-20 times sales—leaving significant upside if Nebius maintains growth while improving margins.

However, this assumes the market remains patient. If investor appetite for unprofitable growth companies cools, both companies could face pressure despite strong revenue expansion. The binary outcome hinges on whether capital markets continue rewarding execution velocity or demand profitability.

The 2026 Outlook

Whether Nebius doubles in 2026 depends on sustained market enthusiasm for high-growth, cash-burning infrastructure plays. The company possesses the growth credentials to justify bullish positioning, assuming it delivers on its ambitious revenue projections.

The real competitive dynamics between this Nebius rival and CoreWeave will likely determine sector leadership. Whichever company better navigates the transition from hypergrowth to sustainable profitability could establish dominant positioning as the AI infrastructure market matures.

For investors seeking exposure to the GPU infrastructure thesis, Nebius represents a legitimate alternative with outsized growth potential—provided the market continues valuing trajectory over near-term profitability.