TLDR
- Nebius Group (NBIS) closed at $106.60 on September 22, 2025, up 7.34% after hitting $108.58 intraday.
- Underwriters exercised their option, boosting its Class A share offering to $1.15 billion.
- Combined proceeds from Class A shares and convertible notes reached $4.3 billion.
- NBIS stock delivered a 646% one-year return, vastly outperforming the S&P 500.
- Valuation remains stretched, with a trailing P/E of 138.44 and price-to-sales ratio of 96.94.
Nebius Group N.V. (NASDAQ: NBIS) closed at $106.60 on September 22, 2025, gaining 7.34% for the day.
Shares reached a record intraday high of $108.58, lifting its market cap to $26.60 billion. The AI infrastructure company has delivered extraordinary returns, with its one-year gain of 645.98% far outpacing the S&P 500’s 17.38%. Year-to-date, the stock is up 284.84%, driven by strong investor appetite for AI-focused companies.
Class A Share Offering Raises $1.15 Billion
On Monday, Nebius announced that underwriters fully exercised their option to purchase an additional 1,621,621 Class A shares at $92.50 per share. This raised total gross proceeds from the Class A offering to about $1.15 billion. The initial closing took place on September 15, coinciding with the settlement of its convertible notes offering. The offering was made under its effective Form F-3ASR shelf registration with the SEC.
Goldman Sachs served as lead book-running manager, supported by Morgan Stanley, BofA Securities, and Citigroup.
Convertible Notes and Combined Financing
Nebius also closed a private placement of convertible senior notes totaling $3.16 billion, split equally between maturities in 2030 and 2032. The offering was upsized from an initial $2 billion, highlighting strong institutional demand. Together with the Class A share sale, the company raised around $4.3 billion to support growth in AI infrastructure.
Business Model and Growth Strategy
Nebius operates an AI-native cloud platform tailored for intensive workloads. The company develops proprietary hardware and software to serve enterprises adopting artificial intelligence. Alongside its core business, Nebius owns Avride, focused on autonomous driving technology, and TripleTen, an edtech platform.
The stock’s valuation remains elevated, with a trailing P/E ratio of 138.44 and price-to-sales ratio of 96.94. Profitability is strong, with a 97.67% profit margin, though challenges include a negative return on assets of 6.44% and a leveraged free cash flow deficit of $1.87 billion.
Financial Position and Market Outlook
As of its most recent quarter, Nebius reported $1.68 billion in cash and a debt-to-equity ratio of 32.43%. Net income reached $190.2 million on revenue of $249.3 million, with diluted EPS of $0.77. Return on equity stood at 4.69%, reflecting efficient capital management.
Conclusion
With its latest financing round complete and stock at record highs, Nebius Group has secured significant resources to expand AI infrastructure. While its growth trajectory remains compelling, investors face high valuation risks as the company balances profitability against heavy capital investment needs.
