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Nvidia and Palantir are top AI stocks on the market, but this little-known AI company outpaced their returns in 2025.
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Customers are rushing to rent this company's GPU-powered cloud infrastructure to run their AI workloads.
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The remarkable revenue growth that this company is likely to deliver could send its shares higher in the future.
Nvidia and Palantir Technologies are among the leading companies in their respective niches in the artificial intelligence (AI) industry, with one of them dominating the hardware space and the other one being known for its cutting-edge software platform. Both companies report healthy growth in their revenue and earnings as customers flock to buy their hardware and software solutions. However, these AI stocks were upstaged by a much smaller company on the market so far in 2025.
Nebius Group (NASDAQ: NBIS), a Dutch company specializing in AI-focused data centers, saw its stock shoot up a remarkable 136% so far this year. That's higher than the comparable 24% gains clocked by Nvidia and the 102% spike registered by Palantir.
Let's see why that has been the case, and check whether this high-flying growth stock can deliver more upside.
Nebius operates in the fast-growing cloud infrastructure-as-a-service (IaaS) market. This market got a massive boost in the past couple of years as organizations look for access to data center capacity to train AI models and run applications in the cloud.
Nebius offers a scalable cloud computing platform powered by graphics processing units (GPUs) from Nvidia, which can be rented on demand by customers for running AI workloads. Additionally, Nebius' AI Studio platform gives customers access to multiple large language models (LLMs) to build AI applications and run inference on its data center network.
The demand for these services is so strong that Nebius' revenue in the first half of 2025 increased by a whopping 545% to $156 million. Management remarked on the company's August earnings conference call that it sold out its entire capacity of Nvidia's previous generation Hopper GPUs. Now, the company is offering Nvidia's latest generation of Blackwell systems through its data centers.
Importantly, Nebius is focused on adding more data center capacity so that it can satiate the huge demand for AI cloud infrastructure. Nebius expects to have 220 megawatts (MW) of connected data center capacity at its disposal by the end of the year to deploy more GPUs. The target for 2026 is even more ambitious, as the company projects having over 1 gigawatt (GW) of contracted data center capacity at its disposal by the end of next year.