We recently compiled a list of the 15 Software Infrastructure Stocks Outperforming In 2025. In this article, we are going to take a look at where Nebius Group N.V. (NASDAQ:NBIS) stands against the other software infrastructure stocks.
Software stocks had a troubling end to the last year and some even continued to fall during January. After a solid year, profit-taking would have been acceptable. However, the continuous decline in January had investors worried, with some media personalities calling it the end of software stocks.
It didn’t take the market long to change its views though. In general, software stocks are not as negatively impacted by tariffs as hardware stocks. Since Trump took over, people have been evaluating their options and with tariffs on the horizon, found software to be a relatively safe sector.
There were some concerns on the AI front as well. The emergence of DeepSeek AI has meant that companies in the US may not be willing to spend more on their AI ventures. Similarly, businesses could simply use DeepSeek’s much cheaper technology, causing downward pressure on subscription prices for instance. So far, none of this looks like becoming a reality, so on the back of solid earnings, most software stocks have comfortably outperformed the market.
We decided to take a look at the top 15 stocks that are outperforming the market so far this year. To come up with our list of 15 software infrastructure stocks outperforming in 2025, we only considered stocks with a market cap of at least 2 billion that were outpacing the broader market till the end of last week.
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
Nebius Group N.V. (NASDAQ:NBIS)
Nebius Group N.V. is a technology company that builds full-stack infrastructure to facilitate the AI industry. The company’s business includes Toloka AI, Nebius, Avride, and TripleTen. The stock is up 37% YTD and much of that has to do with developments related to AI and DeepSeek.
Nebius isn’t profitable yet but could be by the start of next year. It has no debt, nearly $3 billion in cash, and operates in an industry that is seeing a huge demand. This is exactly the time when institutional investors start looking into companies. One of its investors is the GPU giant Nvidia so the company is clearly on the radar of many investors.
Just a couple of months ago, Citron Research had great words for the company’s CEO Arkady Volozh, calling him ‘the real deal’:
A sleeper with no analyst coverage yet, the market hasn’t caught on to its massive potential—or its undervaluation vs. CoreWeave.
When this report was revealed, the stock was already up 35%. Since then, it has become an extremely volatile share as more people notice the company and start looking into it. Despite the volatility, shares continue to trade 37% higher since the start of this year.
Overall NBIS ranks 7th on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NBIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
