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We recently compiled a list of the 10 Hottest Mid-Cap Stocks So Far in 2025. In this article, we are going to take a look at where Nebius Group N.V. (NASDAQ:NBIS) stands against the other mid-cap stocks.
If you've been fixated on the usual suspects in the S&P 500, you might be missing out on some solid action. Many mid-cap stocks have been delivering stellar gains in the first few weeks of this month, and there's a good chance the momentum will stick around.
We believe they'll prove to be more nimble than the large-cap stocks. It's worth looking at them because they are comparatively trading at more attractive valuations and they also strike the sweet spot between the stability of large caps and the growth potential of small caps.
The S&P MidCap 400 index has outpaced the S&P 500 index year-to-date. It's not just a flash in the pan, either. Historically, mid-caps have outperformed both their larger and smaller counterparts in 55% of rolling five-year periods since 1983. As such, it's worth looking deeper into each top mid-cap performer.
We've screened the top mid-cap stocks trading in U.S. exchanges by their year-to-date gains.
A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.
Nebius Group N.V. (NASDAQ:NBIS)
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YTD Performance: 18.1%
Nebius Group (NASDAQ:NBIS) is primarily an AI-centric cloud platform. It offers GPUs as a service and has cloud infrastructure, along with developer tools for clients.
The company recently announced a strategic equity financing of USD 700 million, which was apparently oversubscribed (meaning more people wanted in than there were shares available). This money will likely fuel Nebius’s push to roll out its AI infrastructure around the globe faster than planned.
It has also been building GPU clusters in the U.S. Plus, it doesn’t hurt that NVIDIA itself is backing Nebius, which immediately puts it on a lot of investors’ radars. Their AI cloud business alone is tracking an annual run rate of $120 million, and 2025 revenue guidance is somewhere in the range of $750 million to $1 billion.
Overall NBIS ranks 10th on our list of the hottest mid-cap stocks so far 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 time frame. If you are looking for an AI stock that is more promising than NBIS but that trades at less than 5 times its earnings, check out our report about thecheapest AI stock.