Nvidia Has Given a Massive Boost to This AI Infrastructure Stock. Buy It Before It Doubles in 3 Years

Nvidia disclosed a 9.3% equity stake in Nebius Group (NBIS) valued at $5 billion, sending the neocloud infrastructure stock up 19%. The investment follows Nvidia's $2 billion capital injection in March and positions the company as a major player in AI data center infrastructure.

Nebius provides neocloud services tailored for AI workloads, and analysts forecast revenue could grow sevenfold within two years. The Motley Fool projects the company's market capitalization could reach $110 billion by 2028 if it achieves valuation multiples comparable to Nasdaq peers—implying a potential doubling from current levels.

The Nvidia stake validates Nebius's technical infrastructure and competitive positioning in the rapidly expanding AI compute market. With Nvidia both as an investor and likely hardware supplier, Nebius gains strategic alignment with the dominant AI chip maker while Nvidia secures a customer and partner for its data center GPUs.

The disclosure marks one of Nvidia's largest direct equity positions in an infrastructure provider, signaling confidence in Nebius's ability to capture enterprise AI spending as companies scale large language model training and inference workloads.