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Despite its impressive 2026, Nebius stock still has room for more.
Recent Form 13F filings reveal that billionaire investor Stephen Mandel, known for his diverse portfolio at Lone Pine Capital, has made a notable investment in Nebius. In the second quarter (Q2) of 2026, Mandel added Nebius (NBIS) to his portfolio, elevating it to become his largest overall holding. This substantial commitment from an investor with a proven track record is a strong indication for other investors to closely examine Nebius. Mandel's investment strategy is typically broad, not limited to a single sector, which makes his concentrated bet on this artificial intelligence (AI) stock particularly significant and warrants further investigation into the company's prospects and performance.
Nebius has demonstrated exceptional performance throughout 2026, with its stock price soaring by almost 200% year-to-date. This impressive rally continued despite a notable dip at the end of July, and despite a recent dip on Aug 22, its current price stands at $219.13 with a market cap of $60 billion. As Q2 filings only reflect holdings up to June 30th, Mandel's current position doesn't account for potential purchases during the July dip, yet his initial investment would still be significantly profitable. Nebius has distinguished itself as one of the top stock picks of 2026 due to its remarkable growth trajectory. The company operates within the cutting-edge "neocloud" sector, functioning as an AI-focused cloud computing provider. This specialization is crucial in the current market landscape, where there is a considerable and growing shortage of AI computing power. Companies with robust computing capacity, like Nebius, are positioned for immense success. A key competitive advantage for Nebius is its status as a preferred partner of Nvidia, a leader in AI hardware. This partnership grants Nebius early access to advanced, state-of-the-art technology, ensuring it consistently offers the latest and most efficient products to its clients. Nebius's business model involves securing deals with major AI hyperscalers to lease them essential computing power. This strategy has fueled its "jaw-dropping growth," exemplified by a 454% year-over-year revenue increase in Q2. This growth is organic, driven by the rapid expansion of its computing infrastructure, rather than one-off events or acquisitions. Industry analysts anticipate this explosive growth to persist, projecting a 523% increase for the second half of 2026 and a further 258% growth in 2027. With AI computing demand only expected to increase, this makes Nebius one of the best options in terms of pure growth in the AI domain. The article concludes by asserting that even with its substantial gains in 2026, Nebius remains a phenomenal investment opportunity, encouraging investors to emulate billionaire Stephen Mandel's recent stock acquisition.