Nebius Group (NBIS 3.03%) stock surged sharply higher today, gaining as much as 10.3%. As of 11:37 a.m. ET, the stock was still up 9.9%.
The artificial intelligence (AI) neocloud specialist reported an important development that gave shareholders reason to cheer.
Image source: Getty Images.
Achievement unlocked
In a press release that dropped Wednesday morning, Nebius announced that it had received approval from the City Council of Independence, Missouri, to begin construction on the company's largest gigawatt-scale AI factory. The council voted to approve the city's Chapter 100 industrial development incentive plan submitted for the soon-to-be-built AI gigafactory.
"Independence will be our largest AI factory in the United States to date, and we are fully committed to making it a project the city is proud of, " said Nebius CEO Arkady Volozh. "This is our first project of this scale, but not the last."
Nebius is one of the emerging neocloud operators that provide AI-centric cloud services, using stockpiles of graphics processing units (GPUs) to offer what is commonly called GPU-as-a-Service (GPUaaS).
NASDAQ: NBIS
Key Data Points
This AI factory will advance the company's ability to provide AI processing services for customers, as adoption of this next-generation technology continues to expand.
That said, while Nebius Group is delivering explosive growth, it isn't yet profitable. Revenue of $530 million surged 479% in 2025, while its adjusted loss of $447 million jumped 87%. Furthermore, the stock is selling for 41 times sales, though that's down from a peak of above 300.
To be clear, Nebius is a high-risk, high-reward stock. For investors with a high risk tolerance, it should be a small part of a balanced portfolio.
