Nebius Group N.V. (NBIS) may not command the same attention as Nvidia Corp (NVDA), but one ETF issuer believes the AI infrastructure company could offer one of the market's most compelling long-term opportunities.
Asked which overlooked AI stock he would own over the next five years, GraniteShares CEO Will Rhind pointed to Nebius, arguing the company is still flying under the radar despite rapidly strengthening fundamentals.
"It's an AI cloud company still flying under the radar next to the mega caps, but it's real," Rhind told MarketDash in an exclusive email interview.
Why Nebius?
Rhind highlighted the company's triple-digit revenue growth, Nvidia's $2 billion investment and its recent addition to the Nasdaq-100 as signs that investors may be underestimating its potential.
Unlike hyperscalers that build AI infrastructure primarily for their own ecosystems, Nebius focuses on renting AI compute capacity to customers—a business Rhind believes could become increasingly valuable as demand for AI infrastructure continues to exceed supply.
Overlooked AI Stock
"The reason it's overlooked is that it's volatile and not yet profitable, so a lot of investors won't touch it," he said. "Over five years, if the compute shortage is what I think it is, the companies renting out that compute have a long runway."
The comments also underscore a broader shift in how some investors are approaching the AI trade. Rather than concentrating solely on chipmakers like Nvidia, they're increasingly looking for companies that stand to benefit from the growing need for AI infrastructure, including cloud providers, networking firms and data center operators.
For Rhind, Nebius represents one of the purest ways to gain exposure to that theme. The stock has become popular enough among active traders that GraniteShares recently launched the GraniteShares 2x Long NBIS Daily ETF (NBIL), a 2x leveraged ETF tied to the company, reflecting growing investor interest in single-stock AI plays.
