If Nebius’ revenue indeed hits $20.4 billion in 2028 on account of its massive backlog, its market cap could reach $114 billion even if it trades at the same sales multiple as the Nasdaq Composite index. That points toward terrific gains, as Nebius currently has a market cap of $67 billion. However, this phenomenal revenue growth isn’t the only reason why Nebius stock could fly significantly higher.

Investors may be underestimating the growth potential of its software stack

Nebius isn’t just a company that builds AI data centers and rents out the hardware to customers. It also offers a software stack that enables customers to build AI agents, develop custom AI software, run inference tasks, and build models as per their needs. Nebius customers can buy tokens to access popular large language models (LLMs) on its platform.

The company’s software solutions address the needs of multiple industries, including healthcare, life sciences, media & entertainment, robotics and physical AI, and retail & commerce. The important thing to note is that Nebius anticipates that its software solutions will become a larger part of its revenue mix in the future.

Though it doesn’t specify exactly how much revenue it generates from the software side of the business, it appears that this segment’s contribution is positively impacting its margins. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin landed at 32% in the first quarter of 2026, a significant improvement over a negative margin of 106% in the year-ago period.

Nebius is witnessing an improvement in the demand for inference-focused tokens. Given that the demand for AI inference applications is growing rapidly, it won’t be surprising to see Nebius’ software solutions experiencing stronger demand in the future. This is probably why analysts have become extremely bullish about the company’s bottom-line growth potential.

The exponential earnings growth Nebius could clock over the next two years indicates the stock could trade at a nice premium to the Nasdaq Composite index’s average price-to-earnings ratio of 42. This is another reason I believe Nebius’ growth potential isn’t fully priced into the stock, even after its tremendous rally this year.

So, investors can still buy this growth stock as it has the potential to fly even higher given its ability to deliver stunning revenue and earnings growth.

Should you buy stock in Nebius Group right now?

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool has a disclosure policy.

Nebius Is Targeting 540% Data Center Revenue Growth by Year-End. 2 Reasons the Stock Could Still Be Undervalued. was originally published by The Motley Fool