You may hear the phrase “multibagger” a lot in the investment community. Essentially, each time a stock doubles, it gets “one bag,” pulling from baseball terminology. A multibagger indicates multiple increases from the base investment amount. So, whenever you hear about a multibagger stock, it’s one that has immense upside.
One stock that I think has multibagger potential is Nebius Group (NASDAQ: NBIS). Nebius is a neocloud company that specializes in artificial intelligence-first cloud infrastructure. There’s clearly a huge demand for its capabilities, making it one of the premier growth stocks to own right now.
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But how much can Nebius’s stock go up? Let’s take a look.
There are a few reasons why Nebius is emerging as a go-to pick in the neocloud space. First, it provides a full-stack solution, so anybody, be it an AI hyperscaler or an individual developer, can utilize Nebius’ product to train and run AI models without needing any other resources.
Second, Nebius has a deal with Nvidia to gain access to the newest products faster than anyone else. If Nebius has access to this technology first, that gives anyone on Nebius’ platform an advantage over their peers, so naturally it will attract more clients.
All of these advantages are leading to real growth from Nebius. It’s growing at a rate that companies seldom reach. In Q4, its total revenue rose by 547%, while its core AI business increased by 802%. For 2026, it expects its annual recurring revenue to reach $7 billion to $9 billion, up from $1.25 billion at the end of 2025. Nebius is clearly one of the top growth stocks in the market with metrics like that, which is why I think it has multibagger potential.
Nebius currently has a market value of about $25 billion, so it’s not a very large company. If Nebius can continue rapidly building out its computing footprint over the next few years, it could transform into a massive business. However, there is still the question of profitability.
Unsurprisingly, Nebius isn’t generating any profits because it’s funneling funds into its data center buildout. This is the smart thing to do, as the AI boom won’t last forever. Once enough computing capacity has been built out, it will be difficult to capture any more market shares, and that’s when investors should expect Nebius to flip the profitability switch. So, the stock carries some investment risk, as it may not be able to become profitable on a moment’s notice.