Nebius just auctioned its first Blackwell capacity above any price it has ever charged, and management says it could sell all of 2027 right now but is choosing not to. Whether that restraint makes the stock a buy at these…
At its current $243.88 share price, Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) looks compelling for investors focused on the next leg of AI compute pricing power. Shares have run hard, but management’s most recent disclosures suggest the pricing story is only beginning to inflect.
Nebius operates a full-stack AI cloud platform spanning compute, storage, managed services, and inference, with its Token Factory targeting open-model deployment. NVIDIA‘s (NASDAQ:NVDA) strategic equity investment and Exemplar Cloud designation place Nebius inside the reference architecture for Blackwell and Vera Rubin builds, alongside anchor contracts with Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT). The stock has climbed from $88.62 at the February 2026 filing to today’s level as capacity milestones and record run-rate revenue have landed in sequence.
Why Full-Capacity Pricing Is the Real Story The Q2 earnings call reframed the thesis. CEO Arkady Volozh said Nebius “could sell today our entire 2027 capacity on these terms if we wanted to”, but is deliberately holding capacity back for premium short-duration deals. Its first Blackwell capacity auction cleared 15% above the highest price the company had ever charged, and short-duration contracts are being negotiated at $40 million to $50 million per megawatt versus $20 million to $25 million on mid-term deals.
Q2 revenue reached $582.3M, up 454% YoY, with group adjusted EBITDA of $236 million at a 41% margin. Management raised contracted power to 5 gigawatts by year-end, RPO stands at $37.5B, and ARR guidance of $7B to $9B by year-end 2026 was reaffirmed. Four landmark Q2 deals averaged more than a billion dollars each.
Where the Bear Argument Bites Hardest The build is capital-intensive at unprecedented scale. FY 2026 capex guidance sits at $20 billion to $25 billion, and Q2 interest expense surged to $95 million from roughly $4.8 million a year prior. Convertible debt carries $8.5B at cost but $20.8B in fair value, embedding real dilution risk. The ATM program placed 12.7 million Class A shares at an average of $224, with 12.3 million shares still authorized.
Three customers accounted for 24%, 21%, and 14% of Q2 revenue. GAAP net loss came in at $190.4M despite the EBITDA inflection, and revenue missed consensus in three of the four quarters preceding the Q2 beat. FY 2026 EPS consensus has been cut to -$2.5183 from -$1.6233 ninety days ago.
Reasons Some Investors Would Rather Sit Tight NBIS is up 191.36% YTD versus 12.32% for the S&P 500, and trades at roughly 45x forward earnings and 45x trailing sales. Much of the ARR ramp, 5 GW power target, and 40% EBITDA margin outlook is arguably discounted at these levels. Execution on Pennsylvania (1.2 GW), Finland (310MW), and Missouri (1.2 GW) sites still has to land on schedule, and every one of those gigawatts has to be powered and cooled by somebody (we rounded up seven suppliers doing exactly that work in a free AI infrastructure report).
Patient investors could wait for Q3 revenue to validate the $906.6M consensus and Q4 to test the ARR range. Cost of patience is real if auction pricing keeps climbing, and so is the cost of adding at fresh 52-week highs.
What the Data Actually Says Nebius trades at $243.88 with a market cap near $61.5B and forward P/E near 45. The 4-analyst mean target of $286.69 sits above the current share price, though price targets are one data point and not a guarantee. The ratings breakdown:
Strong Buy: 1 Buy: 2 Hold: 1 Sell: 0 Recent performance separates NBIS from the market: up 22.22% in one week, 29.74% over one month, 191.36% YTD, and 280.71% over one year. SPY returned 0.55% for the week, -0.94% over one month, and 12.32% YTD. FY 2026 revenue consensus sits at $3.34B across 17 analysts, rising to roughly $11.97B for FY 2027.
Verdict on Nebius at Current Levels At $243.88, the setup for Nebius Group looks constructive. Here is why.
Q2’s pricing signal is the pivotal development. When a supplier can auction Blackwell capacity 15% above its prior high and command $40 million to $50 million per megawatt on short-duration deals, ARR guidance of $7B to $9B reads as a floor built on mid-term contracted pricing that management is deliberately leaving room to exceed.
Three near-term catalysts drive the path higher: Q3 and Q4 2026 results validating ARR against the $906.6M and $1.45B consensus prints, an initial 2027 revenue guide from management, and additional asset-backed debt at SOFR plus 250 basis points that eases reliance on dilutive equity. The July $775M facility is the template. Scaling it makes the convertible overhang more manageable.
Risk/reward at $243.88 demands careful sizing after a 191% YTD run. The thesis breaks if Q3 revenue misses the $906.6M bar, if the 5 GW power target slips, or if auction pricing rolls over. Short of those signals, the setup favors owning the operator that keeps proving pricing power in a supply-constrained market.
Contact [email protected] for any questions or corrections.
Nebius (NBIS) dnes vzrostl o více než 10 % po oznámení partnerství s Palantir, který jej označil za preferovaného partnera pro suverénní AI infrastrukturu. Akcie se dostaly na denní maximum 245 USD, nejvýše od 18. srpna.
Buy NBIS. The Palantir “preferred sovereign AI infrastructure” deal is a credibility shock that should pull in more enterprise workloads, and management is already capacity-constrained (sold out for the year, selling 2027 capacity). The chart confirms trend strength (above the 50-day MA, inverted head-and-shoulders) with a clear path: reclaim/hold $250, then push toward $300 and $312 if resistance breaks.
Key Risk: Palantir’s partnership doesn’t translate into incremental revenue fast enough, and the stock sells off on dilution/cash burn fears.
CoreWeave (CLOV) / IREN (IREN) neocloud sympathy
Buy CLOV and IREN as a basket. Nebius is moving with the same “neocloud” tape (CoreWeave and IREN cited as mirroring performance). If Palantir is standardizing sovereign AI infrastructure, the second-order effect is more procurement across the whole GPU cloud peer group, lifting sentiment and order flow beyond just Nebius.
Key Risk: The move is purely Nebius-specific (no broader customer shift), and the market rotates out of neoclouds after the initial headline fades.
Nebius stock surged by over 10% today, September 8, continuing a recovery that started on Tuesday last week when it bottomed at $194.76. It jumped to a high of $250, its highest level since August 18 this year, mirroring the performance of other neocloud companies like CoreWeave and IREN.
NBIS stock went parabolic after the company announced a major partnership with Palantir, one of the biggest software players in the industry.
In a statement, Palantir said that it will use Nebius as its preferred sovereign AI infrastructure partner. As part of this deal, Palantir will bring Nebius compute and inference endpoints inside Palantir enterprise perimeter.
This means that Palantir customers will have access to Nebius’s cloud and inference infrastructure. Alex Karp, Palantir’s CEO, said:
“Nebius’ compute infrastructure powers your ability to run your own AI models under conditions you control. Our ontology and their infrastructure will undergird the sovereignty our partners are demanding.”
Palantir joins a long list of customers who are using Nebius services. Some of the most notable ones are Microsoft, Meta Platforms, Cloudflare, and Revolut. Its demand is so high such that the management insisted that it was fully sold out for the year, and that it was in a position to sell its 2027 capacity today.
READ MORE: Michael Burry shorts Nebius stock: Is it a buy or sell before earnings?
The most recent results showed that Nebius Group’s revenue growth continues growing, with the management expecting it to keep growing. Its revenue surged by 454% in the second quarter to $582 million, with its six-month figure rising to $981 million.
The challenge, however, is that this growth is coming at a cost. For example, its depreciation and amortization rose from $75 million in the second quarter of last year to over $259 million. This is a big number, which means that its D&A is about 44% of the total revenue.
The company’s capital expenditure continued growing, reaching over $5.7 billion as it continues to spend. It is funding its spending through borrowing and using customer prepayments. In its statement, the management said that it expected to receive about $9 billion in customer prepayments.
Worse, the company has funded its capital expenditure through share sales. It sold 12.7 million shares through June, raising $2.8 billion in cash. It has about 13 million in outstanding shares that it can sell. This explains why it has a short interest of about 20%.
NBIS stock chart | Source: TradingView
The daily chart shows that the NBIS stock has soared in the past few days, moving from a low of $194.76 last week to a high of $245. A closer look shows that it has already crossed the 50-day moving average and formed an inverted head-and-shoulders pattern. These technicals are usually high bullish.
Nebius is attempting to move above the Major S/R pivot point of the Murrey Math Lines tool at $250. Therefore, the most likely scenario is where it continues rising, potentially to the strong pivot reverse level of $312. This view will be confirmed if it crosses the resistance at $300.
Nebius has surged over 200% in a year on the back of marquee deals and a $37.5 billion backlog, yet three customers still drive nearly 60% of revenue and a $20 billion capex bill looms. The setup has two very…
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At $206.32, Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) sits in a setup that warrants patience. After a violent rerating this year, the stock trades on the assumption that every marquee contract, every megawatt, and every financing round lands on schedule, which warrants pause before adding.
Nebius runs an AI cloud supplying GPU compute, storage, and software to model developers and enterprises, with the Nebius AI Cloud segment producing $574.90 million of the group’s $582.30 million in Q2 revenue. Smaller subsidiaries include TripleTen in edtech and Avride in autonomous delivery, plus a stake in ClickHouse.
The rerating has been driven by anchor deals with Microsoft and Meta, a $2.0B pre-funded warrant investment from NVIDIA, and Nasdaq-100 inclusion earlier this year, per Yahoo Finance coverage from June. The demand pull here is the same one lifting the power, cooling, and networking suppliers we profiled in a free report on seven AI infrastructure names that aren’t chipmakers.
Bull Case: Backlog Is Doing the Talking Q2 revenue grew 454.04% year over year and beat consensus by 1.33%, with the AI cloud unit expanding 514% and cost of revenues improving to 23% from 29%. Group adjusted EBITDA reached $236 million at a 41% margin, and annualized run-rate revenue hit $3 billion.
Remaining performance obligations sit at $37.5B, and management raised its year-end contracted power target to 5 gigawatts. A capacity auction cleared at 15% above prior peak Blackwell pricing, and Arkady Volozh said Nebius “could sell today our entire 2027 capacity on these terms if we wanted to.”
Bear Case: Capital Intensity and Concentration Three customers represented 24%, 21%, and 14% of Q2 revenue. H1 capital expenditures already hit $8.13 billion, with full-year 2026 capex guided to $20 billion to $25 billion. Convertible debt carries at $8.5B with fair value of $20.8B, and interest expense surged to $119.1M from $4.8M.
Uncommenced lease obligations sit at $12.1B, the May ATM already sold 12.7 million shares at a weighted $223.60, and Nebius competes head-on with Azure, AWS, and Google Cloud, a race that requires perpetual capital deployment into next-generation chips. Q3 25, Q4 25, and Q1 26 all missed revenue consensus.
Two-Sided Setup: Patience Required The story is genuinely two-sided. Execution has been strong on capacity, marquee contracts, and margin expansion, but current valuation hinges on hitting the $7B to $9B ARR exit target while navigating global power grid queue delays and steady HBM and GPU supply allocations.
There is also residual sentiment around historical Yandex ties that can occasionally create noise among institutional compliance desks, even though the corporate separation is legally complete. What to watch: quarterly ARR progression toward the guide, connected power reaching the 800 megawatts to 1 gigawatt target, and customer diversification beyond the top three.
Valuation and Targets Shares trade at $206.32 against an average analyst target of $286.69, implying roughly 39% upside if consensus proves right. Forward P/E sits at 68 and EV/revenue at 45.
Coverage skews constructive, with 1 Strong Buy, 8 Buy, 4 Hold, 0 Sell, and 1 Strong Sell. NBIS is up 146.48% year to date against the S&P 500’s 12.48%, and up 201.99% over one year versus 18.91% for the index.
Key Observations: Setup Requires Patience At $206.32, Nebius sits in a wait-and-see setup for researchers. The bull thesis is real, but the entry point implies near-flawless execution across power delivery, GPU allocation, and customer diversification through the second half of the year.
The next catalyst pair matters most: Q3 revenue against the $899 million consensus, and connected-power progress toward the year-end target. A clean beat with visible customer broadening would materially improve the risk/reward profile observed today.
The scenario that would meaningfully weaken the setup is a second consecutive quarter of ARR conversion slippage combined with fresh equity issuance at lower prices, since the $8.5B convertible stack and remaining ATM capacity keep dilution live. With the stock already up 146.48% YTD, the margin of safety has compressed materially.
From a research standpoint, waiting one or two quarters carries limited informational cost relative to the risk embedded in paying growth-stock multiples for a business whose top three customers still generate 59% of revenue.
Contact [email protected] for any questions or corrections.
Nebius uzavřel emisi konvertibilních dluhopisů za zhruba 5,75 miliardy USD, více než původně plánovaných 4,5 miliardy USD. Akcie v úterý po poledni vzrostly o 4 %.
Nebius just closed a convertible debt deal that blew past its own raised target, and instead of punishing the stock, investors sent it higher. Here is why the size of this raise matters more than the dilution it brings.
Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) stock is up 4% to $218.47 Tuesday midday, snapping a six-session losing streak that had built as the market braced for a large convertible deal. The rebound arrived right after the company disclosed a raise that came in larger than the market had expected. Year to date through Monday’s close, Nebius Group stock was up 152%, so the recent slide interrupted a strong 2026 run.
For context, the First Trust Cloud Computing ETF (NASDAQ:SKYY) is down 0.1% to $158.77 in Tuesday trading, drifting as software names cool off. Meanwhile, Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is up 2% to $28.53, tracking a firmer bid across data-center REITs and semiconductor names tied to AI buildouts.
Bigger Raise Draws Bigger Demand Nebius announced Monday the closing of a private offering of convertible senior notes with aggregate gross proceeds of approximately $5.75 billion, sold to qualified institutional buyers. The deal came in two series: 0.50% convertible notes due 2030 with $3.45 billion in aggregate original principal, and 4.50% convertible notes due 2034 with $2.3 billion in original principal. Initial purchasers exercised their options in full for an additional $450 million of the 2030 notes and $300 million of the 2034 notes.
The total exceeded Nebius’s initial $4.5 billion target, which had been raised to $5 billion last week. Investors appear to be reading the upsize as validation of demand for the company’s AI infrastructure buildout, which is anchored by long-term contracted capacity (we profiled seven suppliers powering that buildout, from power to cooling, in a free report you can grab here). Order books that clear at a higher size and a low 0.50% coupon on the front tranche suggest institutional appetite for exposure to neocloud growth.
Dilution Stack Grows Alongside Backlog Alongside the new offering, Nebius entered privately negotiated exchange agreements with certain holders of its 2.00% convertible notes due 2029 and 3.00% convertible notes due 2031, swapping $400 million of the 2029 notes and $400 million of the 2031 notes for approximately 15.8 million Class A ordinary shares. The company disclosed that those holders may sell the shares in the open market or unwind hedge positions, activity that “could decrease (or reduce the size of any increase in) the market price of the Class A shares.” The exchange effectively swaps a portion of the older notes for equity ahead of their scheduled maturities.
Proceeds from the raise will fund data-center construction and build-out, investment in its full-stack AI cloud, expansion of its data-center footprint, procurement of GPUs and other key components, and general corporate purposes, according to the company. Long-term committed capacity contracts represent $37.5 billion in remaining performance obligations, and three customers each represent more than 10% of quarterly revenue. That concentration cuts both ways, providing visibility while tightening the company’s reliance on a handful of anchor tenants.
Neocloud Peers Set the Frame The bull case rests on customer demand. Nebius signed a five-year, $12 billion AI infrastructure deal with Meta Platforms (NASDAQ:META) and is targeting 800 MW to 1 GW of connected power by the end of 2026, with data center campuses in Missouri, Pennsylvania, Finland and the United Kingdom. That contract sits inside the $37.5 billion of remaining performance obligations that the raise is designed to fund.
CoreWeave (NASDAQ:CRWV) is the closest listed comparison for Nebius, running the same neocloud playbook with heavy capex, hyperscaler-anchored contracts, and its own large convertible-supported balance sheet. IREN Limited (NASDAQ:IREN) rounds out the neocloud trio, and IREN reports fiscal fourth quarter 2026 results after the close on Thursday, August 27, giving the group its next fundamental checkpoint. Both peers face the same capital-intensity math that Nebius does, which is why the group tends to trade in sympathy on financing news.
What to Watch Traders can watch for whether the Nebius stock rebound holds into today’s close and how the new 2030 and 2034 notes trade against the existing convertible stack. Sizing matters here, since the raise concentrates dilution risk even as it clears near-term financing uncertainty.
The IREN earnings report Thursday will give investors the next read on neocloud demand and capex pace across the group. Investors should size their positions to reflect the capital intensity of the model and the customer concentration in Nebius’s book, especially after a session where good news arrived wrapped inside a $5.75 billion debt raise.
Contact [email protected] for any questions or corrections.
Nebius po silných výsledcích společnosti Nvidia v prodlouženém obchodování vzrostl o více než 6 %. Nvidia zároveň uvedla, že tržby za poslední čtvrtletí stouply na 96 miliard USD.
Nebius stock jumped by over 6% in the extended hours as technology companies reacted to the strong Nvidia earnings, which painted a rosy color on the booming AI industry. It rose to $215 after ending the day at $213. Still, the company faces significant competition challenges as more companies move into the industry.
Nebius Group, a company that counts Nvidia as a big investor, rose after the latter delivered a stronger-than-expected earnings report. In a statement, Nvidia said that its revenue jumped to $96 billion last quarter, higher than the expected $92 billion.
Most importantly, the company guided to its FY’28 revenue growth being higher than expected. Its guidance is that its revenue will grow by 70%, much higher than the 40% analysts were expecting. The real figure will be much higher than that because the company assumed no China sales.
Nebius Group will benefit from the ongoing AI boom because it is one of the biggest infrastructure providers in the industry. It counts top companies like Meta Platforms and Nvidia as clients.
Its most recent results showed that revenue went parabolic, a situation that will accelerate in the foreseeable future. Its revenue jumped to $582 million in the second quarter, a 454% annual increase. For the first six months of the year, revenue was up by 529% to $981 million.
In its statement, the company said that demand for its computing power was so high that it could sell out its 2027 capacity today. This bodes well for its growth trajectory, which analysts expect will continue in the foreseeable future.
Indeed, analysts predict that its annual revenue will climb 532% this year to $3.35 billion. They also expect it to grow by over 250% next year to $11 billion. If this growth continues, it means that the company will hit the $50 billion mark in the coming years.
Still, the company’s revenue growth has not boosted the stock performance. That’s because its business is facing substantial challenges, including the rising costs, with Nvidia planning to increase prices by as much as 15% in January. Other products like servers and memory are getting expensive by the day.
This surge will lead to more cash burn. In its last quarter, the company spent $5.7 billion in capex. As a result, there is a risk that it will dilute its shareholders further. It sold 12.7 million shares, generating $2.8 billion in cash. It has 12.3 million more shares available in the current ATM program.
Competition is also rising in the industry. On Wednesday, Anthropic reached a $45 billion deal with Nscale, a top Nebius competitor. Rum Holdings, formerly known as Rumble, has also entered the industry. This is on top of other top companies like Meta Platforms, RIOT Platforms, and MARA Holdings.
These concerns explains why the company has a high short interest of over 21%, with Michael Burry being one of the top short sellers.
NBIS stock chart | Source: TradingView
The daily chart shows that the NBIS stock has pulled back, erasing the gains it made after the last financial results. It has dropped from a high of $276 to the current $213. By doing this, the stock has filled the fair-value gap it formed after its earnings report.
The two lines of the MACD indicator have formed a bearish crossover pattern. On the positive side, it formed an abandoned baby candlestick pattern on August 24. Now, after the strong Nvidia earnings, there is a likelihood that it will retest the resistance at $250 and then resume the downward trend.
Šéf Palo Alto Networks Nikesh Arora řadí Nebius mezi „neoscalery“, které mohou přežít po odeznění nedostatku GPU. Nebius mezitím vykázal tržby z AI cloudu ve výši 575 milionů USD, meziročně o 514 % více.
Palo Alto Networks' CEO is warning that most AI cloud companies will collapse when GPU scarcity ends, but he carves out a narrow exception for a category of survivors he calls neoscalers. Nebius made his list, and the reasons why…
The AI infrastructure boom is creating a peculiar investing landscape. Demand for computing power is running ahead of available supply, allowing companies that own GPUs and data-center capacity to command premium prices. Nvidia (NASDAQ:NVDA | NVDA Price Prediction) said its neocloud partners are expected to reach 8 gigawatts of installed capacity by the end of 2026, up from 3 gigawatts at the end of 2025.
Yet Palo Alto Networks (NASDAQ:PANW) CEO Nikesh Arora sees a reckoning coming when supply catches up. His warning is stark: “In two years from now you will be able to buy a neocloud for less than they raise at today.”
But Arora doesn’t put every AI cloud company in the same bucket. He specifically sees Nebius Group (NASDAQ:NBIS) becoming a “neoscaler,” along with CoreWeave (NASDAQ:CRWV). That distinction matters for investors deciding whether Nebius is an AI infrastructure bubble candidate or a potential long-term winner.
What Is a Neoscaler? A neocloud primarily rents scarce GPU capacity. That can be a lucrative business while GPUs, power, and data-center space are constrained. But it also leaves the company vulnerable when competitors add capacity.
Arora’s “neoscaler” concept describes something more durable: an AI cloud provider that reaches sufficient scale, locks in major customers, secures power and infrastructure, and adds software capabilities on top of expensive hardware.
Nebius is building toward that model. Its second-quarter shareholder letter showed AI cloud revenue of $575 million, up 514% year over year, while annualized recurring revenue reached $3 billion. More important, its AI cloud business generated a 50% adjusted EBITDA margin in the quarter.
That software layer is important because GPUs depreciate and become obsolete. If all a company does is rent chips, falling rental prices can quickly squeeze returns. Nebius is trying to make its platform more than a warehouse full of GPUs.
A brutal reckoning is coming for AI infrastructure. See why industry titans are betting $40B on the 'neoscaler' distinction to survive the bubble. Why Nebius Looks Different The strongest evidence supporting Arora’s view is Nebius’ contracted demand. The company has signed multibillion-dollar agreements with Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), including a roughly $2.9 billion, five-year Meta agreement. Nebius said in July that it had more than $40 billion of additional contracted revenue from investment-grade customers such as Microsoft and Meta.
It is also securing power and expanding its infrastructure footprint. Nebius raised its contracted power guidance to more than 5 gigawatts and said four large second-quarter deals averaged more than $1 billion each. About 50% to 60% of capital expenditures for some deals can be financed through customer prepayments.
That changes the capital equation. Nebius isn’t simply building speculative capacity and hoping customers arrive.
The Risk Is Still Real Granted, Arora’s warning shouldn’t be dismissed. Neoclouds remain capital-intensive businesses, and he argues their economics depend on capex and internal rates of return. When supply and demand balance, he says, equity valuations will normalize — and funding capex through equity works only while markets remain euphoric.
Nebius just closed a $5.75 billion convertible-note offering, including $3.45 billion of notes due in 2030 and $2.3 billion due in 2034. The proceeds will finance data-center expansion, GPUs, and its AI cloud platform. That is a lot of capital to put to work.
But it is also why the distinction between a generic neocloud and a neoscaler matters. Nebius has contracts, power, scale, and an increasingly broad software stack. The company says its platform serves the full AI workload lifecycle, while acquisitions such as Eigen AI and Clarifai are intended to strengthen inference and AI engineering capabilities.
Key Takeaway In short, Arora’s comments aren’t a blanket endorsement of Nebius. They’re almost the opposite: a warning that investors shouldn’t confuse today’s GPU scarcity with a permanent competitive advantage.
Nebius, however, has several characteristics that could allow it to survive the normalization Arora expects. Its $3 billion AI-cloud ARR, 50% adjusted EBITDA margin, multibillion-dollar customer contracts, and more than $40 billion of additional contracted revenue give it a foundation most speculative neoclouds lack.
That makes Nebius worth considering for aggressive investors. But after a massive infrastructure buildout and $5.75 billion financing, the stock still demands discipline. The neoscaler thesis is compelling — investors just shouldn’t pay any price for it.
Contact [email protected] for any questions or corrections.
Nebius ve 2. čtvrtletí zvýšil tržby o 454 % na 582 milionů USD a upravená EBITDA dosáhla 236 milionů USD. Firma zároveň podepsala čtyři AI cloudové smlouvy, každou za více než 1 miliardu USD.
Nebius Group's (NBIS -4.26%) stock has surged after the artificial intelligence infrastructure company delivered a blockbuster second quarter.
Revenue jumped 454% year over year to $582 million,while adjusted EBITDA reached $236 million. The company also signed four AI cloud contracts worth more than $1 billion each.
The business is clearly moving fast. But so is the stock.
With shares trading at more than 200% return in just one year and the company valued at roughly $60 billion (as of writing), investors are asking an important question: Has Nebius already gone too far, or could the stock still have room to run?
Image source: Getty Images.
The AI opportunity is enormous Nebius doesn't build AI models like ChatGPT. Instead, it provides the computing infrastructure needed to build and run them. Think of Nebius as a company that rents out extremely powerful computers to businesses developing artificial intelligence.
Those computers require expensive Nvidia GPUs, data centers, electricity, cooling systems, and high-speed networks.
And demand is exploding. Nebius' AI cloud business generated about $575 million of revenue in the second quarter, more than five times the amount generated a year earlier. Management also expects full-year 2026 revenue of $3 billion to $3.4 billion and year-end annual recurring revenue of $7 billion to $9 billion.
The customer demand is equally impressive. Nebius now has more than $40 billion of customer commitments, while management expects more than $9 billion of customer prepayments during 2026. It also said it could sell all of its planned 2027 capacity at current terms.
In simple terms, companies are lining up to buy Nebius' computing capacity. That's the core reason investors are so excited.
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The economics are getting better, too Growth for the sake of growth is never a good thing. But here's where Nebius's business gets particularly interesting.
But first, some basics. Building AI infrastructure is incredibly expensive. Nebius spent about $5.7 billion on it in the second quarter alone. That raises a critical question: How quickly does Nebius get that money back?
Therein lies the good news. The company said the expected payback period for infrastructure tied to contracts signed in the second quarter had fallen to about one year and 10 months, compared with roughly two to three years historically.
That's a big improvement. Imagine Nebius spends $1 billion building AI infrastructure. If it takes three years to recoup that investment, growth requires substantial capital. But if the investment can be recovered in less than two years, Nebius can potentially put that money back to work much sooner.
In other words, it's improving its capital efficiency, which should lead to shareholder value creation.
But there are still big risks The biggest risk is that AI infrastructure becomes a victim of its own success.
Right now, demand for computing power is extremely strong. But companies across the industry are rushing to build more data centers and buy more GPUs. What happens if they eventually build too much? Prices could fall. Customers could have more bargaining power.
Moreover, Nebius's stock may appear to be quite expensive, even after accounting for all the prospects ahead. For perspective, the company is now worth roughly $60 billion and is expected to generate around $3.4 billion in revenue (at the top end of guidance) for 2026. That's a price-to-sales (PS) ratio of 18 times, which is anything but cheap! On one end, traditional valuation measures don't tell the whole story because Nebius is growing extraordinarily quickly. Investors aren't buying the company for what it earns today. They're paying for what they believe Nebius could become in several years.
If the company continues to win enormous contracts and keeps improving its profitability, today's valuation could eventually look much more reasonable.
But there isn't much room for disappointment. When investors pay a premium price for a rapidly growing company, even a small hiccup can cause the stock to fall sharply. For instance, the stock fell more than 20% just last week as the company announced $5 billion private offering of convertible senior notes, triggering severe investor fears regarding equity dilution and debt accumulation.
So, should investors buy Nebius stock? Overall, I'm bullish on the business, but more cautious about the stock at this price.
Nebius is growing rapidly, customers are committing billions of dollars, and its infrastructure expenses appear to be paying back faster. But the stock has already climbed dramatically, and investors are now expecting a lot. And that brings us to an important idea: A great company isn't always a great stock at any price.
For someone who already owns Nebius, I wouldn't sell simply because the stock has delivered good returns. The company's fundamentals are moving in the right direction.
For investors who don't own it, however, I wouldn't rush to invest a large amount in the stock at once. A smaller initial position, followed by additional purchases if the valuation becomes more attractive or the company continues exceeding expectations, could offer a better balance between opportunity and risk.
Akcie Nebius Group v pondělí klesají téměř o 4 % po zvýšení objemu emise konvertibilních dluhopisů na 5 miliard USD na financování expanze AI infrastruktury.
Nebius Group (NASDAQ:NBIS) shares are trading lower by almost 4% on Monday as investors digest an upsized convertible financing tied to its AI infrastructure buildout, while the Technology sector is down 2.3% and the S&P 500 is off 0.4%.
• Nebius Group stock is among today’s weakest performers. What’s weighing on NBIS shares?
NBIS Stock Drops After Upsized $5B Convertible Notes OfferingNebius increased the size of its convertible notes offering to $5 billion, with proceeds aimed at funding AI infrastructure expansion.
The move can pressure the stock short-term as traders weigh dilution/convert dynamics and the added supply of paper against longer-term capacity growth.
With markets open, the tape is also risk-off in growth: the Nasdaq is down 1.39% even as market breadth is positive (seven sectors advancing, four declining), and Technology is currently the worst-performing sector at -2.3%. That backdrop helps explain why NBIS is sliding harder than the broader market on a day when defensives such as Consumer Staples are leading.
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NBIS Technical Outlook: Uptrend Intact, Near-Term WeaknessFrom a longer-term trend view, Nebius is still in an uptrend — up 189.67% over the past 12 months and trading 35.5% above its 200-day SMA ($149.71) — but the near-term structure has weakened. The stock is trading 5.3% below its 20-day SMA ($214.22) and 8.9% below its 50-day SMA ($222.71), which often acts as overhead "supply" during pullbacks.
Momentum looks more like consolidation than capitulation, with RSI at 46.14 (neutral), suggesting the selloff isn’t deeply stretched yet and could still chop before a cleaner trend resumes. A key nuance is the 20-day SMA sitting below the 50-day SMA (bearish near-term), even while the 50-day remains above the 200-day (bullish longer-term), a mix that often produces volatile ranges rather than straight-line moves.
Key Resistance: $230 — Round-number ceiling near the area above the 50-day SMA where rebounds can stall. Key Support: $164.50 — Prior buyer-defense zone that sits well above the 200-day SMA but below current price, making it a key "line in the sand" if weakness persists NBIS Underperforms Technology Sector During Broader Tech Sell-offNebius is underperforming its Technology sector on Monday, down 4.57% versus the State Street Technology Select Sector SPDR ETF (NYSE:XLK), which is down 1.33%. That relative weakness matters because Technology is currently the worst-performing sector, so Nebius is lagging even within a group that’s already being sold.
Zooming out, the sector has gained 2.81% over the past 30 days but is down 3.21% over the past 90 days, which fits a "bounce inside a choppier medium-term tape" setup. In that context, Nebius’ drop looks like a higher-beta reaction to financing headlines layered on top of a broader tech pullback.
NBIS Earnings Preview, Analyst Price TargetsLooking further out, the next major catalyst for the stock arrives with the Nov. 10 (estimated) earnings report.
EPS Estimate: $-1.36 (Down from a loss of 40 cents year-over-year) Revenue Estimate: $903.49 million (Up from $146.10 million YoY) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price forecast of $227. Recent analyst moves include:
DA Davidson: Neutral (Raises Target to $250 on Aug. 18) Citigroup: Buy (Raises Target to $324 on Aug. 14) DA Davidson: Neutral (Maintains Target to $175 on Aug. 13) How NBIS Ranks On Momentum, ValuationBelow is the Benzinga Edge scorecard for Nebius, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Bullish (Score: 98.19) — Despite today’s drop, the stock’s broader trend and relative performance signals remain strong. Value: Weak (Score: 4.32) — The market is pricing in aggressive growth, leaving less room for error if execution or funding conditions tighten. The Verdict: Nebius’ Benzinga Edge signal reveals a momentum-driven story with a premium valuation profile. For longer-term bulls, the setup often works best when pullbacks hold above major trend levels, but near-term swings can stay sharp around financing and growth-stock sentiment.
NBIS ETF Exposure: Fund with the Biggest Weighting Leverage Shares 2X Long NBIS Daily ETF (NASDAQ:NBIG): 111.60% Weight Significance: Because Nebius carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
NBIS Stock Price Update: Shares Slide On MondayNBIS Stock Price Activity: Nebius Group shares were down 4.15% at $210.03 at the time of publication on Monday, according to Benzinga Pro data.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Nebius tento týden spadl o 21,1 % poté, co oznámil, že chce vydat konvertibilní dluhopisy za 5 miliard USD. Trh se obává zadlužení i možné diluce akcionářů.
Nebius Group (NBIS -0.45%) stock plunged 21.1% this week, according to data provided by S&P Global Market Intelligence. That shouldn't bother existing shareholders who have enjoyed the 231% gain in Nebius stock over the past year.
For those who think they missed out on the huge run in Nebius stock, it could be an opportunity, though. Investments in data centers continue to accelerate, and Nebius has customers lined up to use its compute capacity.
Image source: Nebius Group.
Capital spending by the four largest hyperscalers has already reached $300 billion through June this year. That's about 75% of what those same companies spent in all of 2025, according to recent research from The Motley Fool. Some of that money is going to Nebius. The company has generated more than $4.5 billion in net cash from operating activities in the first half of 2026. That compares to over $350 million spent on operations in the year-ago period.
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But the company needs to continue adding capacity to satisfy demand. That's why Nebius announced it would raise $5 billion by issuing convertible notes this week. Shares dropped on the news, as it adds debt and could lead to shareholder dilution should those notes be converted to common stock.
In its second-quarter letter to shareholders, Nebius detailed how growing demand is also increasing the value of its compute capacity. Contract value per megawatt of capacity has soared this year.
Returns on its invested capital look to be growing. That makes dips in the stock a good time to buy shares if investors believe the artificial intelligence infrastructure build-out has several years to go. That, and the stock's already lofty valuation, are the risks one has to balance.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Wolfe Research čeká, že Nebius Group může do konce roku 2030 dosáhnout více než 41 miliard USD ročních opakujících se tržeb, tedy téměř desetinásobku modelovaných 4,26 miliardy USD za 3. čtvrtletí 2026. Klíčem má být 5 GW smluvního výkonu a růst kapacity od roku 2027.
The AI infrastructure boom is moving into a new phase. Demand for computing power is no longer the only constraint; access to electricity, data-center capacity, and financing are becoming just as important. Customers are committing billions of dollars years ahead of delivery, while scarce power supports pricing. For investors, contracted power is becoming a financial asset as much as an operating metric.
Wolfe Research believes Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) can exit 2030 with more than $41 billion of annual recurring revenue (ARR) — nearly 10 times the $4.26 billion ARR shown for the third quarter of 2026 in its model. The thesis is aggressive, but its building blocks are visible.
Power Is Becoming Revenue Nebius just raised its year-end 2026 contracted-power target to 5 gigawatts, up from more than 4 GW. Management said it plans to deploy more than 1 GW annually beginning in 2027, and Reuters reported that the company believes it can sell its 2027 capacity at current terms.
The Wolfe model translates that power ramp into ARR growth: $6.3 billion in fiscal 2026, $13.9 billion in 2027, $22.8 billion in 2028, $31.8 billion in 2029, and $41.2 billion in 2030. That assumes Nebius can repeatedly convert electricity into revenue-producing capacity.
Forget the chips—the real AI war is being fought over electricity. With billions in upfront payments from tech titans, the race to turn raw power into revenue has officially reached a fever pitch. Customers Are Helping Fund the Buildout Nebius’ Q2 2026 shareholder letter said annual contract value per megawatt had climbed above $20 million for Q2 deals and above $40 million for short-term Q3 capacity deals. Four deals averaged more than $1 billion each, while 50% to 60% of their capex was self-financed through customer prepayments.
Nebius’ 2025 annual report provides an example. Microsoft‘s (NASDAQ:MSFT) agreement can generate as much as $17.4 billion through 2031 and includes roughly $7 billion of upfront payments. Meta Platforms‘ (NASDAQ:META) March agreement carried a potential contract value of about $27 billion.
That reduces Nebius’ financing burden while long-duration contracts provide revenue visibility.
The Margin Test Still Matters Admittedly, contracted power is not completed infrastructure. Nebius spent about $5.7 billion on capital expenditures in Q2 alone, according to its shareholder letter, while 2026 revenue guidance remains $3 billion to $3.4 billion.
The company also faces competition from Nvidia (NASDAQ:NVDA)-powered cloud providers such as CoreWeave (NASDAQ:CRWV). Nebius must turn scarce power into energized capacity quickly enough to preserve returns.
Surprisingly, its Q2 AI cloud adjusted EBITDA margin reached 50%. That gives the model some credibility, but sustaining those economics while adding more than 1 GW annually will be the key test.
Key Takeaway In short, Wolfe’s $41 billion ARR forecast is a high bar, but the math has a foundation. Nebius must convert 5 GW of contracted power into capacity, maintain pricing above $20 million per MW, and keep using customer prepayments to fund growth.
For investors, Nebius is a high-risk, high-upside AI infrastructure bet. The 10x ARR opportunity is worth watching, but the real signal will be whether margins hold as the gigawatts come online.
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Nebius Group vzrostla od začátku roku o více než 220 % a za posledních několik týdnů přidala přes 40 %. Ve 2. čtvrtletí jí výnosy meziročně stouply o 454 %.
Nebius Group (NBIS -1.69%) has been an incredible stock to own in 2026. It has risen by more than 220% year to date, and has recovered nearly all of the losses it sustained during July's tech-sector sell-off. Its rise recently has been swift, including a jump of more than 40% in the past few weeks.
The catalyst for that growth? Its second-quarter report. Nebius knocked it out of the park with its results, and management assured investors that its impressive growth rate will likely continue into the near future. And despite its recent rally, there's still plenty of room for the stock to run.
Image source: The Motley Fool.
Nebius's growth rate is among the fastest in the market Nebius operates a neocloud business, which means that it's focused on providing AI-first cloud computing services. The hyperscalers that lead the cloud infrastructure sector have booked a significant backlog of business, and they're trying to get their hands on as much computing power as possible to meet those obligations and turn backlogs into revenues. Some of Nebius's biggest clients are companies that are spending big to build computing infrastructure themselves.
Nebius is rapidly expanding its data center footprint, and has brought several new facilities online throughout 2026. This has led to tremendous growth. In Q2, its revenue rose by 454% year over year, and the rapid growth is not expected to dissipate anytime soon.
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Wall Street expects 446% growth in the third quarter and 526% in the fourth. In 2027, analysts expect 250% growth. By the end of next year, the business will have transformed massively from where it was at the end of 2025.
With big revenue growth still to come, I'm confident that Nebius's stock can continue to do well in the future. It will be hard for most rivals to replicate this kind of growth.
The only red flag I see is Nebius' spending. It's pouring every penny it can get its hands on into its capital expense budget, and it isn't producing any profits. This shouldn't come as a surprise to investors, as Nebius wants to capture market share while it can, but it will eventually have to flip its focus from top-line growth to turning a profit. That won't be easy, and could lead to some headaches for investors when it occurs. But given that the AI build-out doesn't look like it will slow down anytime soon, it may be years before investors start wanting Nebius to shift gears and prove that it can operate its data centers profitably.
There is plenty more upside ahead for Nebius, but investors should still keep an eye on its profitability and where it's trending as the AI build-out phase matures.
Nebius uvedl, že odhadovaná doba návratnosti smluv uzavřených ve 2. čtvrtletí klesla na asi 1 rok a 10 měsíců z historických dvou až tří let. To naznačuje výrazně lepší ekonomiku jeho AI infrastruktury.
For months, investors have focused on one question about Nebius Group (NBIS -7.60%): Can the company turn the artificial intelligence boom into attractive economics? Nebius' latest quarter provided an encouraging answer.
The number that caught my attention wasn't its 454% year-over-year revenue growth. It wasn't even the more than $40 billion of customer commitments. It was the payback period.
Nebius said the estimated payback period for contracts signed in the second quarter fell to about 1 year and 10 months, compared with a historical range of roughly two to three years. That improvement could be more important to long-term investors than another quarter of triple-digit growth.
Image source: Getty Images.
Why payback matters Nebius is building one of the most capital-intensive technology businesses.
The company spent approximately $5.7 billion on capital expenditures in Q2, primarily to expand its graphics processing unit (GPU) and data center infrastructure. It has also raised its contracted-power target for 2026 from 4 to 5 gigawatts as it races to meet demand.For perspective, a 1-gigawatt AI data center requires around $40 billion to $50 billion in capital investment in servers, facilities, network infrastructure, and energy.
That's an enormous amount of capital, and it raises the question investors care most about: How quickly does Nebius get that money back?
Imagine spending $1 billion on GPUs and related infrastructure. Revenue tells you how much business the infrastructure generates. Payback tells you how quickly the investment's cash flows can recover the capital deployed.
The shorter the payback period, the faster Nebius can potentially recycle its capital into the next wave of infrastructure. In the case of Nebius, its latest contracts allow it to regain its investments in less than two years.
For a company spending billions of dollars to expand capacity, the speed of that cycle matters enormously.
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The economics appear to be improving The payback improvement becomes even more interesting when combined with the terms of Nebius' latest contracts.
The company signed four major AI cloud contracts in Q2, each averaging more than $1 billion in total contract value. The contracts also carried annual contract values above $20 million per megawatt, compared with roughly $12 million across Nebius' existing 2026 capacity.
That's a notable improvement. Nebius isn't merely adding more customers. It appears to be securing infrastructure capacity at increasingly attractive economics.
Moreover, customers are helping fund the expansion. Around 70% of Q2 deals included customer prepayments, while Nebius expects more than $9 billion of customer prepayments during 2026.
Put those pieces together: Higher contract values. Shorter payback periods. Customer-funded capex. That is a very different story from simply saying, "AI demand is strong."
This could weaken the biggest bear argument Nebius' biggest risk has never really been whether customers want AI infrastructure. The latest contracts suggest they clearly do.
The bigger question has always been whether Nebius can generate attractive returns after spending billions of dollars to build the infrastructure those customers require. That's why the payback period matters.
A company can grow revenue by hundreds of percent and still destroy shareholder value if every dollar of additional revenue requires even more capital. But if Nebius can consistently recover its infrastructure investments in roughly two years, the economics of aggressive expansion look very different.
That is particularly important because Nebius' AI cloud business is already showing significant operating leverage. In Q2, the company reported approximately $575 million of AI cloud revenue, while adjusted EBITDA reached about $236 million at the group level.
The combination of strong demand, improving contract economics, and expanding margins suggests Nebius may be moving toward a much more attractive business model as it scales.
Investors shouldn't declare victory yet There is an important caveat. The one-year-and-10-month figure is an estimated payback period for the Q2 contracts. It isn't guaranteed that every future deployment will yield the same economics.
Payback can change with GPU prices, utilization, power costs, customer demand, hardware depreciation, and competition. Nebius also remains extraordinarily capital-intensive. The company is spending billions today based on the expectation that AI computing demand will remain strong for years.
If AI demand continues to exceed available capacity, that investment could prove highly lucrative. But if the industry eventually overbuilds, utilization and pricing could fall, extending payback periods and reducing returns on capital.
That's the risk investors cannot ignore, and should be watchful of.
What does it mean for investors? Growth investors usually focus on growth, but I think Nebius investors should start paying closer attention to unit economics rather than just headline growth.
That's why payback is a crucial metric to track, since it tells us how economically attractive that growth may be.
If Nebius can repeatedly deploy billions of dollars into AI infrastructure and recover that capital in roughly two years, it could create enormous long-term shareholder value as it scales. That could fundamentally change the way investors think about the company, and, ultimately, its long-term value creation.
Nebius plánuje získat 4,5 miliardy USD prostřednictvím emise konvertibilních dluhopisů na rozšíření datových center, výpočetní kapacity a AI cloudové platformy. Akcie v premarketu klesly o více než 7 %.
Branding for Nebius at the Nebius AI UK data centre at Ark Data Centres, in Chertsey, Britain, November 6, 2025. REUTERS/Toby Melville/File Photo Purchase Licensing Rights, opens new tab
Aug 19 (Reuters) - AI cloud provider Nebius Group (NBIS.O), opens new tab said on Wednesday it plans to raise $4.5 billion through an offering of private convertible notes, as it seeks to ramp up investments in data centers and computing capacity.
The Amsterdam-headquartered company plans to issue notes worth $2.75 billion maturing in 2030, and notes worth $1.75 billion maturing in 2034. It may also sell an additional $375 million of the 2030 notes and $300 million of the 2034 notes if purchasers exercise their options, it said.
Sign up here.
Proceeds from the offering will be used to expand data center capacity, invest in the company's full-stack AI cloud platform and acquire GPUs and other key components needed to support growth.
Nebius shares were down more than 7% in premarket trading.
Alongside the debt offering, the company expects to enter privately negotiated agreements with certain holders of its existing convertible notes due 2029 and 2031 to exchange part of the notes for Class A shares.
The completion of the offering remains subject to market conditions, the company said.
Nebius ended June with $8.04 billion in cash and cash equivalents, but spent $5.66 billion on property, equipment and intangible assets in the second quarter, reflecting heavy investment in data centers and computing capacity.
Reporting by Rashika Singh in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Nebius ve 2. čtvrtletí zvýšil tržby na 582 milionů USD, meziročně o 454 %, a upravená marže EBITDA stoupla na 41 %. Firma čeká další růst marží díky vlastním datovým centrům a asset-light modelu.
Key Takeaways Nebius Group posted $582 million in Q2 revenue, up 454%, with a 41% adjusted EBITDA margin.The asset-light model could expand capacity with minimal balance sheet capital and support higher margins. Nebius expects its own data centers and high-value services to drive further margin expansion beyond 2026. Nebius Group N.V. (NBIS - Free Report) is entering 2027 with a business model designed to scale capacity while increasing profitability. In the second quarter of 2026, the company generated Group revenue of $582 million, up 454% year over year, while annualized run-rate revenue reached $3 billion. Group adjusted EBITDA was $236 million, resulting in an adjusted EBITDA margin of 41%, compared with 32% in the first quarter. The Nebius AI business generated a 50% adjusted EBITDA margin. On the last earnings call, management highlighted that the increase in profitability was supported by higher revenue, the early contribution of the asset-light model, Token Factory and recent acquisitions.
The asset-light model could provide an additional path for Nebius to expand capacity without requiring significant balance sheet capital. Under this model, partners finance, build and operate facilities, while Nebius provides its full-stack platform, demand and value-added services on top of the partners’ infrastructure. On the last earnings call, management noted that this approach delivers high-margin revenue while requiring minimum balance sheet capital and has the potential to unlock additional capacity in 2027 and beyond. The company also stated that it had received dozens of inquiries from potential partners with significant capacity and capital but without the technology or market access needed to monetize it.
Management expects margin expansion to continue beyond 2026. The company has visibility into pricing and expects capacity coming online from its own data centers to begin improving margins in the second half of 2027. In addition, Nebius expects the asset-light model, along with high-value services such as agentic and inference solutions, to contribute an increasing share of revenue while supporting even higher margins.
For 2026, Nebius reaffirmed annualized run-rate revenue guidance of $7 billion to $9 billion, Group revenue of $3 billion to $3.4 billion, Group adjusted EBITDA margin of approximately 40% and capital expenditures of $20 billion to $25 billion. The company expects to deploy significantly more capacity in 2027, while 2027 formal guidance will be provided later this year.
Taking a Look at NBIS’ CompetitorsCoreWeave’s (CRWV - Free Report) margins expanded in the second quarter as scale increasingly translated into operating leverage. Adjusted EBITDA was $1.5 billion, with an adjusted EBITDA margin of 59%, while adjusted operating income increased to $128 million from $21 million in the prior quarter, resulting in a 5% adjusted operating margin despite significant ramp costs. Management highlighted that new contracts signed in the second quarter carried contribution margins 5-10 percentage points above those added in recent quarters. Margin-accretive businesses, including storage, CPU, networking and software, exceeded $400 million in ARR. The company expects margins to continue expanding sequentially in the third and fourth quarters, with adjusted operating margins reaching the low teens in the fourth quarter.
Microsoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Microsoft 365 Commercial cloud demand has been propelling Productivity and Business Processes revenue growth. ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services. The company reported fourth-quarter fiscal 2026 revenues of $90 billion, which increased 18% year over year. Gross margin reached $60.5 billion, up about 15% year over year. For the first quarter of fiscal 2027, Microsoft expects total company revenues between $89.85 billion and $90.95 billion, suggesting growth of roughly 16% to 17%.
NBIS Price Performance, Valuation and EstimatesShares of Nebius gained 52.1% in the past month compared with the Internet – Software and Services industry’s growth of 12.1%.
Image Source: Zacks Investment Research
In terms of price/book, NBIS’ shares are trading at 6.79X, below the Internet Software Services industry’s 20.98X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
NBIS currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nebius (NBIS +8.88%) has been steadily raising its capacity guidance for the end of 2026. The company told investors in February that it expected to have 3 gigawatts of contracted power by the end of 2026. That number jumped to 4 gigawatts in May, and when the company released second-quarter results in August, it told investors to expect 5 gigawatts by the end of the year.
This steady growth comes as the company adds new sites throughout North America and Europe. It also suggests that the stock's rally isn't close to over, even though its price has almost tripled year to date.
Image source: Getty Images.
A larger-gigawatt pipeline leads to more revenue Nebius operates in one of the hottest industries right now. It's the largest of the neocloud providers -- a group of companies that's playing a critical role in the artificial intelligence (AI) boom. Tech giants like Meta Platforms (META -0.86%) and Microsoft (MSFT -0.30%) have already turned to Nebius to help them meet their AI capacity needs.
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Meta Platforms has made multiple cloud compute deals this year, in addition to one last year. Its biggest deal came in at $27 billion over the next five years. It's split between a five-year, $12 billion agreement and a second five-year, $15 billion deal. Nebius says it will start to deliver this capacity in early 2027.
It's normal for tech giants to secure hundreds of megawatts in a single deal, and Nebius anticipates having roughly 5 gigawatts of contracted power by the end of 2026. (1 gigawatt equals 1,000 megawatts.) It's entirely possible that Nebius will raise its contracted power capacity guidance again before the end of the year, based on its history.
The ceiling for Nebius' potential revenue will get higher as it secures more megawatts and builds additional data centers. That potential for the business to scale up has been showing up in its recent results. Nebius delivered $582.3 million in Q2 revenue, which was a 454% year-over-year increase. It may continue to deliver similar growth rates for another year as it secures more deals and delivers on existing contracts.
Those same data centers are expensive to build Although the potential for parabolic revenue growth will excite many investors, it costs a lot of money to build AI data centers, obtain energy, and buy hardware such as Nvidia's (NVDA -0.06%) powerful processors. That's part of the reason Nebius issued $4 billion in private convertible notes earlier this year, and some bears point to the company's debt load as a major concern.
Nebius will have to continue borrowing money to build enough data centers to offer 5 gigawatts of AI capacity to hyperscalers. As long as its operating income remains negative, Nebius will have to rely on that type of funding. There is, however, a path out of borrowing money as it realizes revenue from its deals.
The newest Meta Platforms deal alone will provide Nebius with more than $5 billion in annual recurring revenue once it is set up. That's more than the $3 billion in annual recurring revenue that Nebius currently generates. The company expects to have up to $9 billion in annual recurring revenue by the end of the year.
The investment thesis always viewed financing as a way to bridge the gap between Nebius' AI data center ambitions and its net operating losses.
Prepayments make it easier to build the data centers Even though Nebius won't realize recurring revenue from its investments until it delivers AI capacity to its customers, the company has been securing high prepayments. In its Q2 shareholder letter, it revealed that 70% of deals had partial prepayment, with that prepayment often covering 50% to 60% of associated capital expenditures.
Thus, Nebius gets immediate cash infusions from its contracts, and the ability to negotiate more lucrative deals once those contracts expire. A key note in the shareholder letter hinted at Nebius' leverage as demand for AI cloud capacity surges.
"We could sell our entire 2027 capacity on these terms today. We are deliberately not doing so because we see higher value in retaining some capacity for immediate customer needs," the company said in its shareholder letter.
A slowdown in deal-making indicates that Nebius thinks it can secure better terms by waiting a little longer. It also means capital constraints are not an immediate concern as it builds its gigawatt pipeline and approaches revenue recognition on multiple deals.
Nebius Group si pronajme vysokohustotní kapacitu v areálu Vantage CWL1 v Newportu pro AI úlohy. Ve 2. čtvrtletí tržby meziročně vyskočily o 454 % a upravená marže EBITDA dosáhla 41 %.
Key Takeaways Nebius Group will lease high-density capacity at Vantage's CWL1 campus in Newport for AI workloadsNebius Group's Q2 revenue surged 454%, while its adjusted EBITDA margin reached 41%.Nebius Group targets 5 GW of contracted power by year-end and over 1 GW of annual deployment in 2027. The race to build AI infrastructure is rapidly accelerating, and South Wales has been designated a U.K. AI Growth Zone. The recent agreement between Vantage Data Centers and Nebius Group N.V. (NBIS - Free Report) is set to drive this transformation, bringing high-density, NVIDIA (NVDA - Free Report) -powered AI infrastructure to Vantage’s CWL1 campus in Newport.
Per the deal, NBIS plans to lease high-density capacity at Vantage’s CWL1 campus to support a broad range of workloads, including AI training, inference, agentic AI and enterprise applications. The infrastructure will serve a diverse customer base ranging from startups and researchers to large enterprises and public-sector organizations. The move forms part of Nebius’ much larger U.K. expansion strategy. In June, NBIS announced approximately £1.7 billion of committed capacity buildout across four U.K. sites. Newport expands Nebius’ U.K. capacity while diversifying its AI cloud footprint.
The deployment will leverage NVIDIA’s latest full-stack, end-to-end DSX AI factory reference design. NVIDIA’s AI factory approach is designed to optimize these components as an integrated system. For Nebius, deploying NVIDIA-powered infrastructure in a purpose-built, high-density facility can accelerate the deployment of new AI capacity while giving customers access to a familiar, highly optimized technology stack. NBIS’ second-quarter revenue grew 454% year over year, with adjusted EBITDA margin rising to 41%, driven by high-margin capacity sales and early investments.
Nebius aims to reach 5 GW of contracted power by year-end, with plans to deploy more than 1 GW annually in 2027. Construction of data centers is progressing well, with recent innovations such as asset-light partnerships to scale capacity faster. Deals worth more than $20 million per MW with less than two-year payback will start online in late fourth quarter.
Competition Heats Up for NBIS in the AI Cloud RaceMicrosoft's (MSFT - Free Report) AI investments are converting into measurable commercial traction across its stack. Multi-model flexibility, paired with continued access to OpenAI's frontier models under an IP arrangement extending to 2032, allows customers to optimize cost and performance while keeping Microsoft central to their AI infrastructure decisions. With demand still outpacing available capacity, this positioning across AI infrastructure, tooling and applications should continue widening Microsoft's addressable opportunity heading into fiscal 2027. In May, Microsoft signed new agreements with U.S. and U.K. government partners — the Center for AI Standards and Innovation and the AI Security Institute — to advance AI testing and safety evaluation frameworks.
NBIS’ direct competitor, CoreWeave, Inc. (CRWV - Free Report) , is expanding its global infrastructure as demand for AI cloud services continues to strengthen across sectors, geographies and workloads. In June, CRWV announced a new colocation agreement with Conapto, a provider of scalable, secure and sustainable data center solutions. The partnership covers two data center campuses in Stockholm, Sweden, with initial capacity already operational at the Stockholm 4 South facility. Both campuses will be powered by renewable energy, supporting CoreWeave's efforts to expand its AI cloud infrastructure in Europe while maintaining a focus on sustainability. CoreWeave reported record revenue of $2.6 billion, up 112%.
NBIS Price Performance, Valuation and EstimatesShares of Nebius have gained 204.7% year to date compared with the Internet – Software and Services industry’s growth of 21%.
Image Source: Zacks Investment Research
In terms of price/book, NBIS’ shares are trading at 8.91X, higher than the Internet Software Services industry’s 4.2X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised downward over the past 60 days.
Image Source: Zacks Investment Research
NBIS currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nebius uvedl, že první aukce kapacity pro AI dosáhla ceny o 15 % vyšší než dosavadní maximum. Firma to bere jako signál silné poptávky po GPU Blackwell.
• Nebius Group stock is showing weakness. Why is NBIS stock retreating?
While one auction does not establish a long-term pricing trend, the results suggest premium AI computing capacity remains scarce enough for customers to accept substantially higher prices.
AI Compute Pricing Surpasses Nebius’ Previous HighUnlike traditional cloud services, where providers publish fixed prices, Nebius experimented with letting customers compete for a limited pool of AI computing capacity.
Founder and CEO Arkady Volozh said the company’s first attempt exceeded expectations.
“This quarter we launched our first capacity auction. It was very successful and cleared at the highest price we have seen for the Blackwell generation of chips, 15% above the highest price we ever charged before.”
The significance extends beyond the 15% figure itself. Rather than simply announcing a price increase, the auction allowed Nebius to measure customers’ willingness to pay for one of the industry’s most sought-after AI resources — access to Nvidia’s latest Blackwell GPUs.
The outcome suggests demand remains sufficiently strong for customers to pay materially more than Nebius had previously charged.
Nebius Sees the Auction as a Pricing SignalManagement indicated the auction was not merely a one-off sales exercise, but a way to better understand the market.
As Volozh explained, “This gives us a strong signal on the value of this capacity in the market in real time.”
That distinction is important. The auction does not mean all of Nebius’ contracts will immediately be repriced, nor does it guarantee higher profit margins. It does, however, provide evidence that customers are willing to pay more for scarce AI computing capacity than the company’s previous pricing suggested.
For investors, that could prove meaningful. If Nebius incorporates those market signals into future contracts as additional capacity comes online, higher realized prices could support stronger revenue generation from the same underlying infrastructure.
Pricing Power Could Shape the Next Phase of AI InfrastructureThe AI infrastructure race has so far been dominated by discussions around GPUs, data centers and capital expenditure. Nebius’ earnings suggest pricing may become an equally important differentiator.
Companies that can consistently demonstrate pricing power stand to generate more revenue from each unit of computing capacity without necessarily expanding infrastructure at the same pace. While it remains too early to conclude that Nebius has established a lasting pricing advantage, its first capacity auction indicates customers continue to place a premium on access to cutting-edge AI hardware.
If that dynamic persists, investors may begin evaluating AI infrastructure providers not only on how much capacity they build, but also on how effectively they monetize it.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Nebius po silném Q2 reportu prudce rostl, ale firma stále vykazuje vysokou kapitálovou náročnost a čistou ztrátu 190,4 milionu USD. Tržby meziročně vzrostly více než pětinásobně.
Nebius NBIS shares soared on Wednesday after the artificial intelligence (AI) infrastructure firm reported blockbuster Q2 earnings that handily surpassed Street estimates.
NBIS posted a more than 5x year-on-year increase in revenue, reinforcing that it’s finding success in converting its massive backlog into realized sales.
Still, a deeper look under the hood reveals several pockets of vulnerability – which warrant taking profit in Nebius stock today instead of chasing the upward momentum.
Versus the start of 2026, the AI infrastructure name is up nearly 150% at the time of writing.
The primary reason to consider trimming exposure to NBIS shares despite the company’s blowout Q2 release is the capital intensity and the velocity of its cash burn.
Nebius recorded $5.7 billion in capital expenditures for Q2 alone (bringing H1 capex to over $8.1 billion).
Even with some $8 billion in cash on the balance sheet, running an over $20 billion annual capex trajectory means Nebius remains dependent on high-yield debt issuance, equipment financing, or equity-dilutive raises to fund hardware acquisition before those assets generate free cash flow.
These risks are particularly significant given Nebius Group is trading a rather stretched 88x sales at the time of writing.
Investors are recommended caution also because NBIS’s hyper top-line growth is not reflected in its bottom line yet.
In Q2, the firm's GAAP net loss from continuing operations actually widened to $190.4 million as expenses more than tripled to $758 million, mostly due to ramping depreciation, energy costs, and front-loaded go-to-market investments made ahead of capacity coming online.
Plus, management noted that 2026 capacity additions are heavily back-end weighted; monetization depends on data center completions, power grid interconnections, and Nvidia delivery schedules.
Any supply-chain hiccup, power delay, or cluster deployment lag in the second half of 2026 could cause revenue bottlenecks while fixed infrastructure costs continue to accrue.
Nebius has priced in an aggressive path toward a $7 billion to $9 billion revenue run-rate target. But a part of today's price action is a mechanical short squeeze rather than fundamental re-evaluation.
When momentum slows and forced short covering runs its course, the stock remains vulnerable to a sharp pullback if broad tech sentiment flips.
On the flip side, however, the current technical setup points to continued gains ahead.
NBIS stock has ripped through its major moving averages (MAs), and its RSI sits in the mid-50s currently – indicating intense buying pressure.
Additionally, Wall Street remains bullish on the AI infrastructure stock for the remainder of 2026 as well. The consensus rating on Nebius sits at Moderate Buy currently, with price objectives going as high as $410.
Evropský zástupce na poli neocloudu Nebius Group překonal svými hospodářskými výsledky za letošní druhé čtvrtletí očekávání trhu, a to díky pokračujícímu růstu poptávky po AI infrastruktuře a cloudových službách. Investoři reagovali na reportovaná čísla velice pozitivně, neboť akcie Nebiusu vykazují v premarketu růst až o 16 procent.
Společnost se sídlem v Amsterdamu vykázala za čtvrtletí končící v červnu celkové tržby ve výši 582,3 milionu dolarů, zatímco průměrný odhad analytiků oslovených LSEG byl bezmála o deset milionů nižší. Meziročně tržby tak vzrostly o působivých 454 procent.
Hlavním motorem růstu zůstává cloudová divize zaměřená na umělou inteligenci, která se na celkových tržbách skupiny podílí přibližně z 98 procent. Výnosy z tohoto segmentu meziročně vzrostly dokonce o více než 500 procent.
Upravená EBITDA stoupla na 236,2 milionu dolarů (při konsenzu 175 mld. USD) z loňských 21 mld. USD. Anualizované opakující se tržby (ARR) vzrostly mezikvartálně o 58 procent na tři miliardy dolarů.
Nebius také potvrdil svůj celoroční výhled pro letošní rok: ARR zůstává v rozmezí sedm až devět miliard dolarů.
Podle vedení nadále sílí poptávka po výpočetní kapacitě pro AI aplikace, což společnosti umožňuje získávat větší kontrakty s atraktivnějšími maržemi. „Všech cílů, které jsme si pro toto čtvrtletí stanovili, jsme dosáhli. Ve většině případů jsme dokázali ještě více,“ uvedl v dopise akcionářům zakladatel a generální ředitel Arkadij Volož.
Nebius během čtvrtletí uzavřel čtyři významné smlouvy v oblasti AI cloudu. Průměrná celková hodnota každé z nich přesáhla jednu miliardu dolarů. Celková hodnota nasmlouvaných zakázek se oproti předchozímu kvartálu téměř zečtyřnásobila, píše Reuters.
„Uzavřeli jsme naše největší AI cloudové dohody za dosud nejvýhodnějších podmínek a za ceny, které představují zásadní změnu v ekonomice našeho podnikání. Cenovou příležitost vidíme v rozmezí 40–50 milionů dolarů za MW a první jsme podepsali tento týden,“ dodal Volož.
Od začátku roku jsou akcie Nebiusu v plusu zhruba o 115 procent. Po dnešku toto číslo nejspíš nakyne, protože v premarketu se akcie pohybuje mezi +12 % až +17 %.
V segmentu neocloudu se daří také konkurentovi CoreWeave, který reportoval povedené výsledky už ve středu večer. I jeho akcie v premarketu vykazují dvouciferný růst. Více se můžete dočíst ZDE: CoreWeave znovu potvrdil sílu AI boomu. Rekordní zakázky poslaly akcie prudce vzhůru.
Michael Burry oznámil krátkou pozici na Nebius (NBIS), která tento týden zveřejní výsledky. Firma zároveň čelí vysokému ocenění a dluhu, i když její tržby v 1. čtvrtletí meziročně vyskočily o 684 % na 399 milionů USD.
Michael Burry of The Big Short fame recently announced that he had opened a short position on Nebius (NBIS +4.95%), which is set to report earnings this week. While the artificial intelligence (AI) build-out is a major catalyst, Nebius' high valuation and massive debt load have kept some investors away from the stock. But by making his negativity about the stock public, Burry has created more tension for shares.
Although Burry was depicted as a genius in print and on the big screen for anticipating the subprime mortgage crisis, he hasn't gotten every investment call right. This may be one of his misses.
Image source: Getty Images.
Nebius is in the right place at the right time The rising use of artificial intelligence is being supported both by hyperscalers like Microsoft (MSFT -0.45%) and neoclouds like Nebius that can supply AI data centers, chips, and power. Previously existing data centers are limited in what they can do to support AI workloads, and while tech giants have been scrambling to build their own, specialists like Nebius have been finding customers for their compute power, too.
Meta Platforms (META +0.71%) is building a 5-gigawatt facility in Louisiana that will cost more than $50 billion. Microsoft is also working on its Fairwater AI data center, which is expected to be drawing 3.3 gigawatts of electricity by late 2027 -- more than is used to power the city of Los Angeles.
Nebius is already deep into the process of developing multiple AI data centers, and it's generating revenue from some of its facilities. As the company brings more of its compute capacity online, it will realize more revenue from long-term deals it has signed with Meta Platforms, Microsoft, and other tech leaders.
News from the memory chip market indicates that the data center build-out's momentum is not expected to slow down anytime soon. SK Hynix (SKHY +4.70%) recently announced that it is investing $38 billion to build two new memory chip plants due to high and rising demand from the AI data center market. The pace at which new data centers are being built indicates that demand remains robust for compute power of the type that Nebius provides.
Addressing the neocloud's debt One of the main issues that understandably concerns potential investors in Nebius is how much money the company has borrowed to fund its own data center construction. The company's long-term debt more than doubled sequentially from $4.1 billion in Q4 2025 to $8.4 billion in Q1 2026. That figure does not include the company's $1 billion in long-term operating lease liabilities.
Yet its revenues surged by 684% year over year in the first quarter, reaching $399 million. Nebius is delivering substantial top-line growth, but it's still reporting net operating losses. Investors must consider what type of growth rates they think would be necessary to justify the current stock price in the context of the company's debt load.
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On the bright side, all of that debt has left it with $9.3 billion in cash on its books -- that figure, too, more than doubled sequentially. How effectively Nebius uses that cash will heavily determine whether its big bet on debt financing pays off. The expansive nature of the AI build-out suggests a positive outcome for the company is likely in the long run. While short-sellers might profit due to short-term volatility, the long-term picture for this neocloud is still solid.
Nebius Group N.V. zveřejní ve středu výsledky za 2. čtvrtletí; trh očekává ztrátu 68 centů na akcii a tržby 572,75 milionu USD. Akcie jsou zároveň 30,2 % nad 200denním klouzavým průměrem.
Nebius Group N.V. (NASDAQ:NBIS) shares are in the spotlight Monday ahead of the company’s second-quarter earnings release scheduled for Wednesday.
Nebius shares are showing limited movement. What’s ahead for NBIS stock? Earnings Preview & HistoryNebius is expected to report a loss of 68 cents per share along with revenue of $572.75 million. For the prior quarter, the company reported revenue of $399.0 million, beating the consensus estimate of $371.40 million. EPS came in at a loss of 33 cents, beating the consensus estimate of a 77-cent loss.
What to WatchInvestors will be closely tracking infrastructure expansion updates, including progress on GPU deployments and construction at Nebius’ 1.2-gigawatt AI factory in Pennsylvania, after the company raised its 2026 capital expenditure target to a range of $20 billion to $25 billion.
Margin trajectory will also be in focus, as adjusted EBITDA improved to $129.5 million in the first quarter from a $53.7 million loss a year earlier, with management’s forward commentary on profitability likely to carry significant weight. Commentary on new customer agreements and contracted power capacity — which stood at more than 3.5 gigawatts entering the quarter — should provide additional signals on whether demand for AI infrastructure remains strong enough to sustain the company’s growth trajectory.
Analyst Consensus & Recent Actions The stock carries a Buy rating with an average price forecast of $225.00. Recent analyst moves include:
DA Davidson: Neutral (Lowers Target to $175.00) (Aug. 7) Citigroup: Buy (Lowers Target to $278.00) (Aug. 5) Piper Sandler: Initiated with Neutral (Target $224.00) (Aug. 3) Below Short-Term Averages, Above the 200-DayNebius is trading below its shorter-term trend lines, sitting 4.3% under the 20-day SMA ($194.99) and 16.5% under the 50-day SMA ($223.54), which keeps the near-term tape tilted cautious. At the same time, it’s still 30.2% above the 200-day SMA ($143.37), so the longer-term uptrend hasn’t been broken—this is more of a pullback inside a bigger trend.
RSI is the cleaner momentum read right now: at 45.87, it’s in neutral territory, suggesting the stock isn’t stretched enough to force a snapback, but also isn’t showing strong upside momentum. In plain terms, RSI helps gauge whether buying or selling pressure is getting "overdone," and this reading points to a market still deciding direction.
The moving-average structure also shows a split: the 20-day SMA is below the 50-day SMA (a bearish short-term crossover), while the 50-day SMA remains above the 200-day SMA (a bullish longer-term backdrop). On the timeline, the stock peaked in June (also the 52-week high month) and put in a swing low in July, which frames the current zone as a post-peak consolidation rather than a fresh breakout attempt.
Key Support: $164.50 — a nearby pivot area where buyers previously stepped in, and a level traders may watch closely if selling pressure builds into earnings
Read Next
Nebius Shares Edge LowerNBIS Price Action: At the time of publication, Nebius shares are trading 0.24% lower at $188.42, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Nebius obchoduje zhruba za 55násobek tržeb, ale toto ocenění podle článku předpokládá, že firma splní letošní výhled tržeb 3 až 3,4 miliardy USD a výstupní roční tempo tržeb 7 až 9 miliard USD.
Nebius Group (NBIS -1.01%) carries a market capitalization of about $48.6 billion. Over the past 12 months, the company collected $877.9 million in revenue.
Divide one by the other and the stock trades at roughly 55 times sales -- the sort of multiple usually attached to a software business. Nebius buys graphics processors by the billion and signs power contracts by the gigawatt.
But the trailing figure in that fraction is doing something odd. In the first quarter, group revenue rose 684% year over year to $399 million. Revenue at the Nebius artificial intelligence (AI) cloud business alone rose 841% year over year to $390 million, up 82% from the previous quarter.
In other words, the past 12 months include periods when this company was a small fraction of its current size. The denominator describes a business that no longer exists. So what is the price actually assuming?
Image source: Getty Images.
A trailing figure the company has already outgrown The measure Nebius points investors toward is annualized run rate, which it calculates by taking the last month of a quarter's AI cloud revenue and multiplying by 12. That figure reached $1.9 billion at the end of March. It was $1.25 billion at the end of December, and it is up 674% year over year.
Management guides for group revenue of $3 billion to $3.4 billion this year and a run rate of $7 billion to $9 billion exiting the year. It also expects a group adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of about 40%.
That last figure is not much of a stretch from where the business already sits. After all, the AI cloud business ran at a 45% adjusted EBITDA margin in the first quarter, though the group came in at 32%, dragged by two much smaller units.
Now measure the market capitalization against those numbers instead of the trailing ones. About $48.6 billion against $3.2 billion of 2026 revenue at the midpoint is roughly 15 times this year's sales. Against $8 billion of exit run rate, it is about six times.
Six times a run rate is a price investors can argue about. It isn't a number that requires believing the company can do something it has never done.
That is what the 55 is really assuming: that the guidance lands more or less as given.
The cost of getting there Getting there is the expensive part, and it is where I'd slow down.
Nebius has contracted more than 3.5 gigawatts of power and raised its year-end target to more than 4 gigawatts. However, contracted power isn't power that earns revenue. Management expects 800 megawatts to 1 gigawatt of connected power by the end of this year.
So roughly a quarter of what has been contracted may be running by December. The rest arrives in 2027 and beyond.
Building it out costs $20 billion to $25 billion in capital expenditures this year alone. Nebius spent about $2.5 billion in the first quarter and ended March with $9.3 billion in cash, after securing $6.3 billion during the quarter through convertible notes and an equity investment from Nvidia.
The gap between the cash on hand and the spending plan gets closed by upfront customer payments and more debt and equity. In July, Nebius raised $775 million in its first senior secured debt facility, backed by deployed chips and contracted cash flows. Of course, the reason lenders keep showing up is the contracted revenue behind it, including a second agreement with Meta Platforms worth up to $27 billion.
Depreciation is the piece adjusted EBITDA leaves out, and for a business like this it isn't a footnote -- it is the cost of the product.
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If the full $25 billion went to equipment depreciated over five years, the annual charge would approach $5 billion once everything is in service. That is more than the roughly $3.2 billion of annualized adjusted EBITDA implied by $8 billion of run rate at a 40% margin.
So the price assumes the $7 billion to $9 billion run rate arrives. Then it assumes another leg of growth on top of that, large enough to carry the depreciation on everything now under construction.
The first part looks achievable to me. The second depends on contracts beyond those already signed, and it is being funded with a mix of customer payments, debt, and equity.
Nebius reports second-quarter results before the market opens on Wednesday, Aug. 12. The two figures I'd read first are the run rate and the capital spending. If the run rate is tracking toward the guided range while spending stays inside the $25 billion ceiling, the case arguably holds together.
Artificial intelligence (AI) cloud infrastructure provider Nebius Group (NBIS -1.01%) has been a strong stock this year. Shares have more than doubled, but some shareholders locked in those gains last month.
Nebius stock plunged 31.1% in July, according to data provided by S&P Global Market Intelligence. That begs the question of whether now's the time to jump in, hoping for big gains ahead. Looking at the numbers suggests investors should remain cautious, though.
Image source: The Motley Fool.
Exploding revenue There's no doubt that data center compute capacity is in high demand, and Nebius has it. That helps explain why first-quarter revenue soared from about $50 million in 2025 to $400 million this year. The company still has massive expansion plans, too.
In the most recent earnings report in May, the company announced another increase in its projections for contracted power capacity, aimed at bolstering its data centers that supply cloud computing infrastructure essential for the advancement and expansion of AI models.
Since last August, these projections have increased significantly from a minimum of 1 gigawatt (GW) to over 4 GW. Nebius revealed it had already secured up to 1.2 GW of power and land for an AI factory at a new site in Pennsylvania. Nebius reports Q2 results on Wednesday, Aug. 12, giving investors greater visibility into its business pipeline and compute capacity growth.
Nebius' growth explains why the stock has soared 125% this year, even after the July pullback.
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Growth costs money In mid-July, the company announced it would raise $775 million in debt financing to help support its growth. That was in addition to the $6.3 billion raised in the first quarter, which included a $2 billion equity investment from tech giant Nvidia and $4.3 billion from convertible securities.
More and more companies will be using AI, meaning demand for cloud compute capacity is strong. Expanding capacity means investing in the growth of Nebius' AI cloud business. Management said rising co-location and operating lease costs, along with recruitment efforts to support expanding operations, drove expenses higher in Q1.
Nebius spent about $2.5 billion in the first quarter alone, primarily on graphics processing units (GPUs) and GPU-related hardware for its data center expansions. That's why investors should remain wary of Nebius stock at its recent level.
The company will need to continue investing to meet demand, as customers have announced their intention to secure its cloud capacity at an increasing rate. With the stock trading at about 14 times forward sales, the share price could easily be stagnant for some time. Any sign that customers might pull back plans to use Nebius' cloud infrastructure would surely hit the stock, too.
Long-term investors could reasonably add shares at recent levels, but they shouldn't be surprised if the stock swings wildly in the near term.
Nebius před výsledky ztrácí přes 37 % od letošního maxima a opční trh po zveřejnění výsledků čeká volatilitu přes 10 %. Analytici zároveň čekají, že tržby za čtvrtletí vyskočí o 446 % na 574 milionů USD.
Nebius Group stock has lost momentum and is now in a deep bear market after falling by over 37% from the year-to-date high. NBIS dropped to $189, with analysts and investors now focusing on the upcoming earnings, which will come out on Wednesday next week.
Nebius Group is a top neocloud company that runs large data centers, offering services to companies like Meta Platforms, Revolut, and Microsoft.
The company’s stock has come under pressure in the past few weeks as investors remain concerned about several risks.
For example, there is a risk that the business is being highly competitive. SpaceX has already received large orders from Reflection AI, Anthropic, and Google.
Most importantly, Meta Platforms, its top client, is also slowly entering the industry. Media reports suggest that it is considering selling its extra space to other companies, a move that will make it billions of dollars over time.
More competition is coming from Bitcoin mining companies like Riot Platforms, Mara Holdings, TeraWulf, and Hive Digital. While the data center spending is expected to grow, the rising competition may have an impact on companies like Nebius and CoreWeave.
Additionally, there is a risk that Nebius’ planned spending will be higher than expected because of the rising memory, server, and GPU costs. This, in turn, may push Nebius to borrow more and even sell shares to finance its operations.
Nebius Group will publish its financial results next week, and analysts expect them to show that its growth accelerated last quarter. The average estimate is that its revenue jumped by 446% in the quarter to $574 million. This growth makes it one of the fastest growing companies in the industry.
More data shows that analysts expect the annual revenue this year to jump by a whopping 538% to $3.38 billion. It will then make over $11.46 billion next year as it fulfils its data center obligations.
Most notably, the company is expected to generate a negative free cash flow as it continues its spending. In the last quarter, the company made a negative cash flow of over $3.3 billion.
The options market points to more volatility next week. Options expiring next week are shows that the implied volatility at 157%, higher than the historical average of 150%. It has a put/call ratio of 1.47, a sign that it has more puts than calls, which is a bearish sign.
Similarly, those expiring on August 21 have a put/call ratio of 2.64, meaning that traders are buying extended-dated protection beyond the earnings event itself, not just hedging the immediate announcement.
Nebius stock chart | Source: TradingView
The daily chart shows that the NBIS stock peaked at $299.96 and then started a substantial pullback to a low of $145.9, slightly below the 50% Fibonacci Retracement level of $157. Its lowest level also coincided with the 200-day Exponential Moving Average (EMA).
There are signs that the stock has formed a small triple-top pattern, a popular bearish reversal sign. Therefore, the stock will likely be highly volatile after publishing its financial results. The options market is estimating a move over 10%. As such, with puts being more than calls, this means that it may drop to between $155 and $160.
Nebius za poslední rok vzrostl asi o 298 %, ale od červnového rekordního závěru už odepsal zhruba 26 %. Firma teď musí dodat růst tržeb i kapacity datacenter, aby obhájila ocenění.
Nebius Group (NBIS -4.50%) stock has surged about 298% over the past year. The rally was supported by rapid revenue growth, major agreements with technology giants such as Meta Platforms and Microsoft, and a $2 billion investment from Nvidia.
The share price gain appears impressive, considering that the stock has already fallen about 26% from its record closing price in June. However, the pullback also suggests that investors are no longer rewarding the company for announcements alone.
Nebius must demonstrate that its contracts, data centers, and heavy spending can generate sufficient revenue to support its valuation.
Image source: Getty Images.
Strong demand still requires execution Nebius provides cloud computing infrastructure and software that companies use to train and run artificial intelligence (AI) models. In the first quarter, the company's revenue surged 684% year over year to $399 million, while its core AI-cloud revenue jumped 841% to $390 million. Management expects revenue in the range of $3 billion to $3.4 billion in 2026.
The long-term agreements with Meta Platforms and Microsoft give Nebius strong visibility into future demand. However, the company must still build and equip the required data centers on schedule before it can recognize revenue from those contracts.
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What history tells us Nebius shares jumped nearly 15% on March 16 after the company announced its new long-term AI infrastructure agreement with Meta Platforms. However, the next day, Nebius announced plans to raise $3.75 billion through convertible notes. The final principal amount later reached around $4.34 billion. By March 31, the stock had fallen around 20% from its March 16 closing price.
The company's share price later reached a record closing price of $286.69 on June 18 and closed at $212.58 on Aug. 3. This does not prove that Nebius' stock has peaked. It shows that large contracts can quickly lift investor expectations. But the financing and construction required to fulfill those contracts can put downward pressure on the shares.
The valuation leaves little room for delays Nebius shares are currently trading at nearly 17 times the midpoint of management's 2026 revenue guidance of $3.2 billion. Hence, the company is already trading at a premium valuation.
To reach the $3.2 billion midpoint of its full-year guidance, Nebius must generate about $2.8 billion over the remaining three quarters, which implies an average of roughly $934 million in revenue per quarter, more than double its first-quarter revenue. An evenly paced growth path would require revenue to rise about 49% sequentially each quarter, reaching approximately $1.3 billion in the fourth quarter.
While this target is possible, it is also demanding. Nebius' AI cloud revenue already grew 82% sequentially in the first quarter. Management also expects a significant increase in capacity during the third quarter. However, delays in bringing that capacity online could postpone revenue recognition.
Nebius remains a watch list stock for now. However, the company's upcoming earnings results need to show that revenue and data center capacity are rising fast enough to support the valuation. Investors should also watch whether the AI infrastructure expansion requires significantly more borrowing or new share issuance, which could dilute existing shareholders.
Nebius Group posílila o 2,36 % na 192,22 USD po pátečním propadu zhruba o 10 % kvůli výprodeji AI infrastrukturních titulů. Firma navíc oznámila senior secured debt facility za zhruba 775 milionů USD.
Nebius Group shares are powering higher. Why is NBIS stock up today? Friday’s drop was tied to a broad, sector-wide rotation out of high-multiple AI infrastructure stocks, which pushed NBIS down about 10% in that session even as the S&P 500 was modestly higher.
The company also recently announced a roughly $775 million senior secured debt facility led by MUFG and backed by deployed GPU infrastructure, alongside an "asset-light" partnership model aimed at scaling AI capacity.
Management framed the financing as a step toward "strong and durable margins," while the asset-light model was pitched as a way for partners to benefit from "explosive growth of AI."
With futures pointing higher pre-bell, NBIS is participating in the risk-on tone, but the chart still reflects a market that’s been quick to de-risk the AI infrastructure trade when volatility picks up.
That push-pull is showing up as hyperscalers admit demand is still outrunning supply, with Google Cloud revenue up 82% year-over-year in Q2 as AI infrastructure spend accelerates.
Critical Levels To Watch for NBIS StockThe longer-term trend still leans bullish: the stock is about 41% above its 200-day SMA ($139.95) and about 9.6% above its 100-day SMA ($180.08), even after the recent pullback from the June swing high and 52-week high ($299.86). The near-term picture is weaker, with price about 7.4% below the 20-day SMA ($213.15) and about 13% below the 50-day SMA ($226.92), which is consistent with a rebound that can be choppy.
MACD is the cleaner momentum lens right now: it’s below its signal line and the histogram is negative, which typically means upside pressure is cooling unless buyers can push the trend back above that baseline. In plain terms, MACD vs. its signal line helps gauge whether momentum is building or fading, and right now it’s leaning toward "fading" despite today’s bounce attempt.
Key Resistance: $233.50 — a nearby rebound ceiling that sits close to the 50-day SMA area ($226.92), where rallies can stall Key Support: $164.50 — a prior demand zone that sits well above the 200-day SMA ($139.95), making it a key "line in the sand" if selling returns What Is Nebius Group and Its Business Model?Nebius is a vertically integrated cloud provider focusing on AI and high-performance computing. It is a carve-out of the previous Russian tech firm Yandex, following the Russian sanctions since the Ukraine-Russia war.
Nebius has also been framed as an under-the-radar AI infrastructure play, with GraniteShares CEO Will Rhind pointing to triple-digit revenue growth, Nvidia’s $2 billion investment, and the company’s addition to the Nasdaq-100 as reasons it could be overlooked. That longer-duration bull case is captured in one of the more prominent "missed AI stock" takes circulating among thematic ETF watchers.
Nebius Group Earnings Preview for August 2026The countdown is on: Nebius Group N.V. Class A Ordinary Shares is set to report earnings on August 10, 2026 (estimated).
EPS Estimate: Loss of 73 cents (Down from a loss of 38 cents YoY) Revenue Estimate: $576.67 million (Up from $105.10 million YoY) Valuation: P/E of 72.5x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $232.08 (high: $410.00; low: $129.00) across 20 analysts. Recent analyst moves include:
Baird: Initiated with Outperform (Target $250.00) (July 22) Northland Capital Markets: Outperform (Raises Target to $410.00) (July 20) Freedom Capital Markets: Upgraded to Buy (Raises Target to $200.00) (July 20) Nebius Group Benzinga Edge Scorecard AnalysisBelow is the Benzinga Edge scorecard for Nebius Group N.V. Class A Ordinary Shares, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Bullish (Score: 98.76) — The stock’s longer-term trend strength is still dominating, even with recent volatility. Value: Weak (Score: 4.99) — The market is pricing in a lot of future growth, leaving less room for error if expectations slip. The Verdict: Nebius Group N.V. Class A Ordinary Shares’ Benzinga Edge signal reveals a momentum-driven story with a stretched valuation profile. For longer-term bulls, the key question is whether the stock can reclaim the $213–$227 moving-average zone without breaking down toward deeper support.
NBIS Stock Price MovementNBIS Stock Price Activity: Nebius Group shares were up 2.36% at $192.22 on Monday, according to Benzinga Pro data.
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Nvidia zveřejnila, že nepřímo drží 9,3 % v Nebius Group, hlavně prostřednictvím předfinancovaného warrantu z investice za 2 miliardy USD. Akcie Nebius v úterý vzrostly téměř o 19 % a uzavřely na 217,09 USD.
Nvidia (NVDA +2.39%) disclosed this week that it beneficially owns 9.3% of Nebius Group (NBIS +0.61%), an artificial intelligence (AI) cloud infrastructure provider that has become one of the market's hottest stocks. The disclosure came in a Schedule 13G (which Nvidia filed under the rule for passive investors) covering about 22.3 million shares.
Investors treated it as a vote of confidence. Nebius shares jumped nearly 19% on Tuesday, to close at $217.09. The stock is up more than 300% over the past year.
But the market may be reacting to the headline number rather than the fine print. What Nvidia actually owns, and why, tells a more useful story for investors.
Image source: Nvidia.
Mostly a prepaid warrant, locked up until September The 9.3% figure comes with two big qualifiers.
First, the composition. Only about 1.2 million of the shares are common stock Nvidia holds outright. The rest (roughly 21 million shares) comes from a pre-funded warrant Nvidia bought outright with its previously announced $2 billion investment in Nebius, at an exercise price of $0.0001 a share. Nebius already counts those shares as outstanding for earnings-per-share purposes. Nvidia simply can't exercise the warrant or sell the shares before Sept. 11.
Second, the intent. A Schedule 13G is a passive filing. It signals that Nvidia isn't seeking control or pushing for changes. This is a financial and strategic position, not the opening move of a takeover.
Put another way, Nvidia didn't suddenly buy a tenth of Nebius on the open market this week. The filing largely formalizes a stake investors have known about since the $2 billion investment was announced. The market's 19% response says more about sentiment toward anything Nvidia touches than about new information.
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Why Nvidia wants equity in its own customer Nebius is what the industry calls a neocloud. It buys enormous quantities of graphics processing units (GPUs), overwhelmingly Nvidia's, and turns them into rentable AI computing capacity for customers who can't build their own. Nvidia taking equity in a company like that deepens a loop that already exists: Nebius gets capital and credibility, and Nvidia strengthens a fast-growing buyer of its chips while collecting a slice of the upside.
The stake also says something about demand. Nvidia doesn't need to prop up customers if AI computing capacity is going unsold. Putting $2 billion behind a company whose business is renting out Nvidia hardware is a bet that demand for that capacity keeps outrunning supply.
And Nebius has momentum to point to. Its revenue over the trailing 12 months totals about $878 million, and the demand evidence keeps stacking up. In March, Meta Platforms signed a long-term agreement to spend up to $27 billion on Nebius' AI infrastructure.
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The stock has moved just as violently. Shares traded below $50 within the past year, peaked at $299.86, and even after Tuesday's jump still sit about 28% below that high. Swings like that are the price of admission in this corner of the AI market, and investors should expect more of them.
The problem is the price. After Tuesday's jump, Nebius commands a market capitalization of about $55 billion, which is more than 60 times its trailing sales. A multiple like that prices in years of hypergrowth and flawless execution in one of the most capital-hungry businesses in technology.
After all, building AI infrastructure requires staggering amounts of money for data centers, power, and chips, and Nebius will likely need to keep raising capital to fund its expansion. Every dollar of that spending has to earn a return in a market where the largest cloud providers are building the same capacity.
Additionally, a passive minority stake doesn't guarantee Nebius preferential access to chips. It doesn't change the company's economics or its capital needs, and it doesn't make the valuation cheaper. Nvidia's endorsement is a point in the bull case, not a substitute for one.
The stake itself, though, is a meaningful signal. The most important company in AI wants this neocloud to succeed, and it has put real money behind that preference. For Nebius shareholders, that's comforting.
But at more than 60 times sales, the growth stock already prices in an awful lot of success, and Tuesday's pop made that math harder, not easier. I'd watch this one from the sidelines and let the next few quarters show if the growth can keep pace with the expectations.
After soaring more than 400% over the past year to $299, Nebius Group (NBIS +2.70%) stock has finally pulled back, falling roughly 32% from its peak (as of writing).
For many investors, that naturally raises the question: Is this an opportunity to buy one of the market's fastest-growing artificial intelligence stocks?
While the decline has made the stock more attractive than it was just a few weeks ago, investors shouldn't rush to buy simply because the share price is lower. After all, stocks don't become bargains because they fall. They become bargains when the underlying business improves faster than investor expectations.
That's the question investors should be asking about Nebius today.
Image source: Getty Images.
The business may actually be stronger today Despite the recent correction, nothing much has changed about Nebius' business.
The company recently reported revenue growth of 684% year over year to $399 million, while its AI cloud business grew an even more impressive 841%. Annual recurring revenue (ARR) reached a run rate approaching $2 billion, and management still expects ARR to reach between $7 billion and $9 billion by the end of 2026.
Those numbers suggest demand for Nebius' AI cloud platform remains exceptionally strong.
The broader industry backdrop also continues to support the company's growth. As enterprises increasingly adopt artificial intelligence (AI), demand for graphics processing units (GPUs) and AI cloud infrastructure remains robust.
The beauty of Nebius's business model is that it isn't building AI models itself. Instead, it provides the computing infrastructure needed to train and run them. In many ways, the company is selling the picks and shovels behind the AI boom.
So, regardless of which model wins eventually, Nebius will own a share of the market.
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So why did the stock fall? If the business continues performing well, why has the stock price declined? The answer, while not straightforward, probably lies in changing expectations.
Following its extraordinary rally, Nebius's stock was priced for near-perfect execution. Investors weren't simply expecting strong growth -- they were expecting the company to become one of the biggest winners in AI infrastructure.
When expectations become that high, even excellent businesses can see their share prices fall. To put it into perspective, the stock still trades at a price-to-sales (P/S) ratio of 58 times despite its recent correction.
In other words, likely, the market wasn't disappointed by Nebius' results. Instead, investors became more selective about how much they were willing to pay for AI infrastructure stocks after months of extraordinary gains.
Besides, there are also legitimate risks. Nebius plans to invest aggressively to expand its AI cloud infrastructure, requiring enormous capital expenditures over the coming years. In the first quarter of 2026 alone, the company's capex was $2.5 billion. While that spending could strengthen its competitive position, it also increases execution risk if AI demand eventually slows or supply catches up.
What should investors do now? For long-term investors, the recent pullback certainly makes Nebius more interesting than it was a month ago. But it doesn't automatically make the stock a bargain.
One lesson investors should not forget is that an exceptional business and an exceptional investment are not always the same thing. Even great companies can produce disappointing returns if investors pay too high a price.
Instead of focusing on the recent share price decline, investors should watch to see whether Nebius continues to sign long-term customer contracts, expand annual recurring revenue, generate attractive returns on capital, and build competitive advantages beyond simply renting GPUs.
If investors have conviction that Nebius can deliver on those fronts and are willing to tolerate volatility down the road, the recent stock correction could be a starting point to buy shares. Even then, they don't need to rush to load up.
But for the average conservative investor, Nebius's stock remains extremely risky due to its high valuation.
Nebius v 1. čtvrtletí zvýšil tržby o 684 % meziročně a potvrdil výhled na rok 2026. C3.ai naproti tomu oznámil tržby 51,6 milionu USD a ne-GAAP čistou ztrátu 48,8 milionu USD.
Key Takeaways NBIS is expanding AI cloud capacity, products and partnerships while demand continues to exceed supply.C3.ai is restructuring operations, expanding AI adoption and improving enterprise product execution.NBIS reaffirmed its 2026 guidance, while AI faces revenue and profitability challenges Nebius Group N.V. (NBIS - Free Report) and C3.ai, Inc. (AI - Free Report) are capitalizing on the rapid adoption of AI, but they are pursuing distinct growth strategies to capture the expanding market opportunity. While Nebius is building an AI-native cloud infrastructure platform with a focus on hyperscale computing capacity, C3.ai is strengthening its enterprise AI software business through organizational changes, product enhancements and broader adoption of AI across its operations.
Both companies remain focused on expanding their AI capabilities and scaling their businesses to meet rising enterprise demand. However, their growth strategies, execution priorities and business models differ significantly, making the comparison important for investors seeking exposure to the AI sector.
Let’s evaluate their fundamentals, growth prospects, market challenges and valuations to determine which stock presents a stronger investment opportunity.
The Case for NBISNebius is rapidly expanding its AI-native hyperscaler platform by investing aggressively in capacity, products, customers and capital to strengthen its position in the AI infrastructure market. During the first quarter of 2026, the company increased its contracted power capacity from more than 2 gigawatts to more than 3.5 gigawatts and now expects to reach at least 4 gigawatts by the end of 2026. It also announced a new Pennsylvania facility that will support 1.2 gigawatts of power when fully operational. More than 75% of its contracted capacity is now owned, supporting its strategy of building a vertically integrated full-stack AI cloud platform. Management stated that the company is executing across four key pillars, capacity and scale, product and functionality, customers and demand, and capital, while remaining focused on disciplined execution across each area.
The company continues to expand beyond compute into cloud services that cover the complete AI lifecycle, including bare-metal infrastructure, multi-tenancy, inference and emerging agentic capabilities. NBIS strengthened its software and AI offerings through the acquisitions of Tavily, Eigen AI and Clarifai, which added experienced AI engineers and researchers while improving inference optimization, Token Factory capabilities and agentic search functionality. Management emphasized that these acquisitions accelerate product development, deepen customer engagement and strengthen Nebius' position as a full-stack AI cloud provider capable of serving a broader range of AI workloads.
Nebius is further reinforcing its AI leadership through an expanded partnership with NVIDIA Corporation (NVDA - Free Report) . The company achieved NVIDIA Exemplar Cloud status for GB300 training workloads, making it one of only a small number of cloud providers recognized across multiple GPU generations. Management noted that the partnership extends beyond hardware, providing differentiated GPU supply, closer collaboration on future NVIDIA platforms and deeper software integration for inference and agentic AI workloads. These initiatives strengthen Nebius' vertically integrated AI cloud platform while supporting future deployments built around NVIDIA's latest technologies.
Customer demand for Nebius' AI infrastructure remains exceptionally strong across AI-native companies, enterprises and software vendors, as well as industries including fintech, physical AI, life sciences, manufacturing, energy and pharmaceuticals. Management stated that several customers typically compete for every GPU brought online, while first-quarter pipeline generation increased 3.5 times sequentially. Demand continues to exceed available capacity, allowing the company to maintain strong pricing across GPU generations, extend contract durations, increase average contract values and receive growing customer prepayments to secure future AI capacity. The company also highlighted increasing momentum for its inference-focused Token Factory platform as AI adoption expands across enterprise and developer workloads.
Nebius delivered outstanding financial and operational performance during the first quarter, reflecting the strength of its expanding AI cloud business. Group revenue increased 684% year over year, while the Nebius AI business recorded 841% revenue growth and reached an annualized run-rate revenue of $1.9 billion. Group adjusted EBITDA margin improved to 32%, while the Nebius AI business achieved a 45% adjusted EBITDA margin. The balance sheet was further strengthened by a $4.3 billion convertible note offering, a $2 billion equity investment from NVIDIA and record customer prepayments, increasing cash and cash equivalents to $9.3 billion. Supported by this momentum, the company reaffirmed its 2026 guidance for annualized run-rate revenue of $7-$9 billion, group revenue of $3-$3.4 billion and an adjusted EBITDA margin of around 40%.
However, Nebius expects quarterly adjusted EBITDA margins to fluctuate during 2026 as it invests ahead of future capacity deployment. Management indicated that margins are likely to decline in the second quarter because infrastructure investments and operating expenses will be recognized before newly deployed capacity begins generating revenue. The company has also increased its 2026 capital expenditure guidance to $20-$25 billion from the previous $16-$20 billion range to support additional AI infrastructure planned for 2027. Nebius expects to utilize a combination of asset-backed financing, corporate debt, customer prepayments and other funding alternatives while maintaining a disciplined capital structure.
The Case for AIC3.ai is gaining from a broad restructuring initiative aimed at strengthening execution across the business. The company has reorganized its sales, products, services and federal operations under new leadership while introducing a strategic plan with clearly defined objectives. Product development has been consolidated under a single organization responsible for designing, developing, quality-assuring and delivering products, while the services organization has been redesigned with dedicated customer teams to support deployments through completion. Management highlighted that these changes are intended to improve customer satisfaction, enable more successful deployments and support the expansion of enterprise customer relationships.
The company is expanding its AI-first strategy by integrating agentic AI tools across the organization to improve productivity and execution. The company stated that its product teams are now using AI tools for programming activities, while legal, finance, sales and marketing functions have also adopted these agentic technologies. Sales teams are utilizing these tools to enhance market development, business development and customer penetration strategies. Management added that employees across every function are operating with an agentic AI-first mindset as the company focuses on execution and improving overall business performance.
C3.ai also highlighted several operational strengths, including a strong liquidity position and continued customer engagement. In fourth-quarter fiscal 2026, it signed nine initial production deployments, bringing the cumulative total to 417, with 251 remaining active through ongoing deployments, extensions or subscription and consumption agreements. Management also stated that cost reduction initiatives are progressing as planned and are expected to improve operating efficiency, free cash flow and support the company's long-term objectives.
However, C3.ai continues to face challenges from weak financial performance and declining revenue. Management acknowledged that the company's recent performance has been disappointing, describing sales execution as unacceptable and attributing the decline in revenue, remaining performance obligations and profitability primarily to poor sales discipline. The company reported quarterly revenue of $51.6 million, a non-GAAP operating loss of $54.4 million, a non-GAAP net loss of $48.8 million and negative free cash flow of $54.8 million.
C3.ai also indicated that uncertainty remains as it implements its new go-to-market strategy. On the last earnings call, management stated that the company has changed its sales organization and go-to-market approach, making it difficult to predict the future mix between software revenue, professional services, prioritized engineering services and demonstration licenses.
Share Performance for NBIS & AIIn the past six months, NBIS stock has surged 79.8% while AI lost 30.1%.
Image Source: Zacks Investment Research
Valuation for NBIS & AIIn terms of Price/Book, NBIS shares are trading at 6.21X, higher than AI’s 2X.
Image Source: Zacks Investment Research
How Do Estimates Compare for NBIS & AI?Over the past 60 days, analysts have marginally revised estimates upward for NBIS’ bottom line for the current year.
Image Source: Zacks Investment Research
For AI, estimates have been revised significantly upward over the past 60 days.
Image Source: Zacks Investment Research
NBIS or AI: Which Stock is the Better Investment?While NBIS sports a Zacks Rank #1 (Strong Buy) at present, C3.ai has a Zacks Rank #3 (Hold). Consequently, in terms of Zacks Rank, NBIS seems to be a better pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nebius získal zajištěné financování ve výši 775 milionů USD na rozšíření AI infrastruktury. Zároveň představil nový asset-light model pro partnery v jejich datových centrech.
Nebius Raises $775M for AI Buildout“This financing is an important step in that strategy, and reinforces our confidence that our disciplined, diversified approach… will enable us to build a sustainable AI cloud business with strong and durable margins,” said Ophir Nave, COO of Nebius.
The New Partnership ModelSeparately, Nebius introduced a business model allowing infrastructure partners to deploy its AI cloud platform within their own data centers. Partners finance, own, and operate the facilities, while Nebius supplies its architecture, hardware design, and software stack, then brings the resulting capacity to market through its sales organization — expanding Nebius’ available capacity with minimal incremental capital.
“Our new asset-light model gives infrastructure partners a flexible way to benefit from the explosive growth of AI,” said Arkady Volozh, founder and CEO of Nebius.
Nebius Shares RiseNBIS Price Action: At the time of publication, Nebius shares are trading 4.42% higher at $185.57, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Nebius vzrostl o 8 % poté, co oznámil první zajištěný seniorní úvěr ve výši 775 milionů USD na financování expanze v oblasti AI bez nové emise akcií. Tím zmírnil obavy z ředění, které stály za čtvrtečním propadem o 14 %.
Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) shares are up 8% to $186 in Friday afternoon trading, rebounding after Thursday’s 14% plunge that closed the stock at $171.77. The catalyst: Nebius’s first-ever senior secured debt facility, a deal designed to fund its AI buildout without new share issuance.
The move stands out because the broader tape is soft. The Invesco QQQ Trust (NASDAQ:QQQ) was tracking lower, underscoring that this is an idiosyncratic, positive catalyst rather than a beta rally. Nebius stock remains up 117% year to date.
Today’s price action follows a rough ride on Thursday, July 16, with Nebius sinking as the neocloud trade unraveled. Today’s rebound directly addresses the dilution fear at the heart of that selloff.
Debt Deal Eases the Dilution Overhang According to the company’s announcement, Nebius landed a $775 million loan backed by GPU hardware already deployed in its data centers plus cash flows from an existing customer contract. The structure converts revenue-generating infrastructure into fresh growth capital, and Nebius says it can be replicated.
The importance is straightforward. Nebius had guided to $22.5 billion in 2026 capital expenditures, and how to fund that number was the central investor question. By tapping asset-backed debt instead of equity, Nebius answers the bear thesis from Thursday head-on. The company also cited more than $40 billion in additional contracted revenue from investment-grade customers, including Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), and confirmed it remains on track with its Microsoft capacity deployment.
Nebius’s $2 billion pre-funded warrant investment from NVIDIA (NASDAQ:NVDA) remains the anchor validation for its GPU fleet. NVIDIA stock was little changed during Friday’s afternoon session.
CoreWeave Wrote the Playbook CoreWeave (NASDAQ:CRWV) is the closest neocloud pure-play, and it used the same approach earlier this year. Per the reporting, CoreWeave closed an $8.5 billion asset-backed delayed-draw term loan to fund its GPU buildout. Asset-backed debt has effectively become the sector’s preferred way to finance AI infrastructure without diluting shareholders.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Nebius Group didn't make the cut. Grab the names FREE today.
CoreWeave shares tell the other side of the story. CoreWeave stock is up 1% Friday but is down 44% over the past year as debt-load concerns and profitability questions have weighed on the name. Nebius’s positive EBITDA profile has become a key differentiator in that comparison.
A Diversified Way to Play the Theme For investors who want AI infrastructure exposure without single-stock volatility, the Global X Data Center and Digital Infrastructure ETF (NASDAQ:DTCR) is worth a look. The ETF doesn’t hold Nebius or CoreWeave and skews toward established data-center REITs, plus chipmakers like NVIDIA.
The trade-off is clear. The DTCR ETF sacrifices direct AI-compute leverage for lower volatility, and single-sector concentration risk remains.
Bull and Bear Cases: What to Watch The bull case is that non-dilutive, asset-backed financing answers the dilution worry, reinforces Nebius’s capital-efficiency narrative, and comes on top of the NVIDIA anchor and a large contracted revenue book. Retail sentiment reflects that, with r/stocks activity hitting a very bullish sentiment score of 82 during and after the announcement window.
The bear case is that Nebius still adds secured leverage against its GPU fleet, its trailing P/E ratio of 70x is elevated, and today is a one-day bounce after a brutal month. The neocloud derating could resume.
Given NBIS stock’s high-beta profile, position sizing matters here. Investors can watch for whether Friday’s gains hold into the close, updates on the Meta Platforms contract ramp, and the Q2 FY2026 report for the next capacity milestones.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Nebius Group didn't make the cut. Grab the names FREE today.
Nebius představil nový asset-light model, v němž partneři provozují vlastní datová centra pro AI a firma do nich dodává svou full-stack AI cloud platformu. Cílem je rychle rozšířit kapacitu pro zákazníky při minimálních dodatečných kapitálových nárocích.
AMSTERDAM--(BUSINESS WIRE)--Nebius (Nasdaq: NBIS), the AI cloud company, today announced a new business model that lets infrastructure partners deploy Nebius’s full-stack AI cloud platform in their own AI data centers. The model brings additional capacity to Nebius customers, and expands the availability of value-added AI compute globally at a time when demand continues to outstrip supply.
Under the model, partners finance and own the infrastructure and hardware, and operate the data centers. Nebius supplies its systems architecture and supply-chain access; deploys and maintains its hardware design and software and services stack on the partner infrastructure; and takes the resulting capacity to market through its global sales organization.
Partners get fully-owned AI infrastructure assets, designed to Nebius standards, and a fast route to serve the AI cloud market. Nebius’s architecture and platform transform a partner’s raw capacity into a production-ready AI cloud, which Nebius then connects to customers. Because Nebius brings the demand, partners can begin generating a return as soon as the capacity goes live.
For Nebius, this asset-light approach expands the capacity it can offer its customers, such as AI natives and enterprises, with minimal incremental capital requirements. Partners’ data centers will join the Nebius capacity pool, adding incremental capacity to that coming online from Nebius’s owned data centers and colocations.
Arkady Volozh, founder and CEO of Nebius, said:
“Our new asset-light model gives infrastructure partners a flexible way to benefit from the explosive growth of AI. Our software allows partners to reach a much wider customer base with much better margins than conventional wholesale bare-metal contracts. We're inviting data center investors, regional partners and others with capacity or capital to contribute to join us in serving this demand – combining their assets and local strengths with Nebius's technology, platform, operational expertise and customer demand.”
Nebius anticipates pursuing a variety of economic arrangements under this partnership model, including revenue-sharing agreements, licensing fees and commissions, as well as committed capacity arrangements that would provide Nebius with access to additional compute to be sold to customers. The company has already entered into initial arrangements under this asset-light model.
As part of the partnership agreements, Nebius will equip partner teams to run the site and will remain responsible for the cloud software and service levels, while the partner manages the facility and hardware. Customers receive the same standard of service whether they run on Nebius’s own infrastructure or a partner’s.
Prospective partners can learn more at nebius.com/infrastructure-partners or contact [email protected].
About Nebius
Nebius, the AI cloud company, is building the full-stack platform for developers and companies to take charge of their AI future — from data and model training to production deployment. Founded on deep in-house technological expertise and operating at scale with a rapidly expanding global footprint, Nebius serves startups and enterprises building AI products, agents and services worldwide.
Nebius is listed on Nasdaq (Nasdaq: NBIS) and headquartered in Amsterdam.
For more information please visit www.nebius.com.
Media kit nebius.com/media-kit.
Disclaimer
Forward-looking statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our ability to enter into acceptable arrangements with partners, our ability to ensure the same standards of service across both partner and Nebius-owned facilities, our ability to sell this capacity through our global go-to-market organization, our forecast revenue from this service in 2026, our future financial and business performance, strategy, expected growth, planned investments and capital expenditures, capacity expansion plans, anticipated future financing transactions and expected financial results, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “guide,” “intend,” “likely,” “may,” “will” and similar expressions and their negatives are intended to identify forward-looking statements.
These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from the results predicted or implied by such statements, and our reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted or implied by such statements include, among others, our ability to successfully identify appropriate partners; the ability of our identified partners to fully finance their infrastructure and to operate data centers that meet our requirements; market, macroeconomic and geopolitical conditions; competitive pressures; technological developments; our ability to secure and retain customers; our ability to secure additional capital to enable the growth of the business; unpredictable sales cycles; and potential pricing pressures; as well as those risks and uncertainties related to our continuing businesses included under the captions “Risk Factors” and “Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC on April 30, 2026, which is available on our investor relations website at https://nebius.com/investor-hub and on the SEC website at www.sec.gov.
All information in this press release is as of the date hereof (unless stated otherwise). Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date hereof and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.
Nebius zvýšila výhled kapitálových výdajů na rok 2026 na 20 až 25 miliard USD po zajištění více než 6 miliard USD financování a drží přes 9 miliard USD v hotovosti. Cílí také na nejméně 4 GW smluvního výkonu v roce 2026.
Key Takeaways NBIS targets at least 4 GW of contracted power in 2026 after expanding beyond 3.5 GW in the first quarter.Nebius broadened its AI platform with Aether 3.6 and acquisitions of Tavily, Eigen AI and Clarifai.NBIS raised 2026 capex to $20-$25B after securing more than $6B and ending with over $9B in cash. Nebius Group N.V. (NBIS - Free Report) is building an AI-native hyperscaler by executing across four strategic dimensions. It is expanding its capacity and scale, enhancing its products and functionality, growing its customer base and demand, and strengthening its capital position.
On the capacity front, Nebius is rapidly expanding its AI infrastructure. After increasing contracted power from more than 2 GW at the end of 2025 to over 3.5 GW in the first quarter of 2026, the company now targets at least 4 GW this year. It also announced a new Pennsylvania site that will support up to 1.2 GW of power, marking its second company-owned GW-scale AI campus in the United States.
Nebius is expanding beyond AI compute to build a fully integrated AI platform. With more than 75% of its contracted power now coming from company-owned infrastructure, it is strengthening its full-stack offering across the AI lifecycle, including bare-metal, multi-tenant cloud, inference and agentic AI services. The launch of Aether 3.6, along with the acquisitions of Tavily, Eigen AI, and Clarifai, further enhances its platform, particularly its AI inference optimization capabilities. Demand is the third growth pillar, led by its full-stack AI platform, which serves a diverse customer base across industries. First-quarter pipeline generation reached a record, growing 3.5x sequentially, while demand continues to outpace available GPU capacity, with new deployments fully committed.
To meet this strong demand and existing customer commitments, Nebius raised its 2026 capex guidance to $20-$25 billion, accelerating capacity that is expected to begin generating revenue in the first half of 2027. Capital is the fourth pillar of Nebius' growth strategy. To fund its rapid expansion of AI infrastructure, it raised more than $6 billion this year, including over $4 billion through convertible notes and $2 billion from NVIDIA's equity investment. As a result, Nebius ended the period with a cash balance exceeding $9 billion, providing ample financial flexibility to support its long-term growth plans.
Inside the Playbooks of NBIS’ Cut-Throat CompetitorsCoreWeave, Inc. (CRWV - Free Report) , like NBIS, highlighted four key themes– rising AI demand across hyperscalers and enterprises, a broader platform supporting training, inference, agentic AI workloads, rapid infrastructure expansion with more than 3.5 GW of contracted power and stronger financing that has secured more than $20 billion in debt and equity this year. AI workloads are shifting from training to inference and enterprise production, driving deeper commitments from existing customers while attracting new enterprise clients. This momentum fueled record backlog additions in the first quarter, with most of the new business expected to support its 2027 growth targets.
Microsoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside Azure cloud infrastructure expansion. Its AI capabilities are translating into tangible commercial success, with Microsoft Copilot now deployed across more than 20 million paid Microsoft 365 Copilot seats and growing adoption across productivity, coding and security applications. MSFT’s business model spans multiple high-growth segments that collectively reduce concentration risk while providing numerous expansion vectors. Moreover, financial strength enables simultaneous investment in growth initiatives and substantial shareholder value return, with the company distributing $10.2 billion through dividends and share repurchases in the fiscal third quarter.
NBIS Price Performance, Valuation and EstimatesShares of Nebius have gained 151.5% year to date compared with the Internet – Software and Services industry’s growth of 15.2%.
Image Source: Zacks Investment Research
In terms of price/book, NBIS’ shares are trading at 7.36X, higher than the Internet Software Services industry’s 3.97X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised significantly upward over the past 60 days.
Image Source: Zacks Investment Research
NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AI startup Reflection uzavřel s Nebius smlouvu na výpočetní kapacitu za více než 1 miliardu USD, včetně přístupu k nejnovějším čipům Nvidia. Dohoda navazuje na červnovou dohodu se SpaceX.
Branding for Nebius at the Nebius AI UK data centre, a new facility hosting NVIDIA and other computer firms, at Ark Data Centres, in Chertsey, Britain, November 6, 2025. REUTERS/Toby Melville Purchase Licensing Rights, opens new tab
July 14 (Reuters) - AI startup Reflection said on Tuesday it has signed a more than $1 billion deal to secure computing capacity from Nebius (NBIS.O), opens new tab, including access to Nvidia's latest chips.
The move builds on Reflection's June agreement with SpaceX for computing capacity, a deal that media reports said would see the startup pay about $150 million a month through 2029.
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AI startups are racing to lock in the computing power needed to train and run their models as demand growth from businesses adopting the technology outpaces new data-center supply.
Reflection, launched by two former Google DeepMind researchers, develops open-source models that serve as an alternative to the offerings from OpenAI and Anthropic.
Open-source models, typically easier to customize and cheaper to run than closed-weight rivals, have drawn growing interest as rising AI bills push businesses to cut costs. Last month's U.S. curbs on Anthropic's advanced models also exposed the risks of relying on providers that can be cut off overnight.
"The need for open models is clear, and this additional compute capacity will allow Reflection to continue to build and train frontier AI models at scale," said Reflection's chief technology officer and co-founder, Ioannis Antonoglou.
Reporting by Aditya Soni in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
TTRF Capital v novém podání u SEC uvedl novou pozici v Nebius Group za odhadovaných 64,0 milionu USD, která na konci čtvrtletí vzrostla na 89,2 milionu USD.
A July 6, 2026 SEC filing shows TTRF Capital Ltd established a new Nebius Group N.V. (NBIS 4.13%) position estimated at $64.0 million using quarterly average pricing.
What happenedAccording to an SEC filing reported on July 6, 2026, the firm initiated its stake in the AI infrastructure provider. This entry into Nebius Group followed the company's rebranding from Yandex N.V. in August 2024. The stake's valuation reached $89.2 million by quarter-end. Separately, the firm reported 13 total equity positions in the quarter.
What else to knowThe July 6, 2026 filing confirms a new position for the firm, representing 58.8% of reported 13F assets.Top five holdings as of the filing date:Nebius Group (NBIS 4.13%): $89.2 million (58.8% of AUM)Palantir Technologies (PLTR +3.44%): $20.0 million (13.2% of AUM)AST SpaceMobile (ASTS 4.45%): $7.8 million (5.1% of AUM)SoFi Technologies (SOFI 2.15%): $7.7 million (5.1% of AUM)Meta Platforms (META +1.30%): $7.5 million (4.9% of AUM)Nebius Group has outperformed the S&P 500 index by about 300 percentage points over the past year.Company OverviewMetricValueShare Price (as of market close 2026-07-06)$215.08Market Capitalization$51.75 billionOne Year Total Return328.0%Employees1,371Company SnapshotNebius Group operates a comprehensive AI infrastructure platform that provides GPU computing clusters, cloud services, and developer tools to support demanding artificial intelligence workloads globally.The company generates revenue from its diversified portfolio, including Nebius (an AI cloud platform), Toloka AI (data solutions for generative AI development), TripleTen (technology education), and Avride (autonomous driving technologies).The company serves enterprise customers, AI developers, technology learners, and autonomous vehicle manufacturers seeking scalable infrastructure and specialized services within the artificial intelligence ecosystem.Nebius Group is a technology infrastructure company headquartered in Amsterdam with 1,371 employees and a market capitalization of $51.75 billion as of July 6, 2026. The company has established itself as a critical infrastructure provider for the global AI industry, leveraging its diversified business segments to address multiple facets of AI development and deployment. With operations spanning Europe, North America, and Israel, Nebius maintains a strategic focus on providing essential computational resources and specialized services that support the accelerating adoption of artificial intelligence technologies across enterprise and consumer applications.
What this transaction means for investorsTTRF Capital is a young firm running a concentrated portfolio heavy on technology-related names. Nebius appears to be the firm’s highest-conviction stock, with the only other pure-play AI cloud infrastructure supplier being Iren Ltd. (IREN 5.72%) Iren isn’t among its top five holdings, however.
Most investors should work to build a more diversified portfolio, including stocks beyond the technology sector. However, owning Nebius in the higher-risk, technology portion of any portfolio may make sense for those with the proper risk tolerance.
Nebius’ services are in high demand for their GPU capacity, and even AI-leader Nvidia (NVDA +0.90%) owned nearly 1.2 million Nebius shares as of March 31.
Investors should be aware that the market has already built significant potential business into Nebius’ valuation. Its $50 billion market cap is lofty even given the company’s projection of revenue at an annual run rate of $7 billion to $9 billion entering 2027. Positions should be allocated accordingly, and potential volatility should be considered as the company works to manage its fast-growing sales base.
Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends AST SpaceMobile, Meta Platforms, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
Nebius v červnu vzrostl o 19,5 % díky růstu kapacity pro AI cloud a zvýšenému výhledu na více než 4 GW. Firma zároveň míří na tržby přes 3 miliardy USD v roce 2026.
Growth for artificial intelligence (AI) cloud infrastructure company Nebius Group (NBIS 6.09%) has exploded over the last year, and investors have poured into the stock. A nearly 20% surge in shares in June reversed course in July, though, and investors should continue to expect volatility of this kind.
Nebius stock jumped 19.5% in June, according to data provided by S&P Global Market Intelligence. But it crashed nearly the same amount in the first trading week of July. Here's what investors need to know, and what they should expect ahead.
Image source: Nebius Group.
Building out capacity Investors have been attracted to Nebius stock in droves because of its spectacular growth rates. In its May earnings report, the company said it was again raising its guidance for contracted power capacity to support its data centers, which provide cloud computing infrastructure for AI model development and growth.
That guidance has soared since last August, from at least 1 gigawatt (GW) to over 4 GW. In May, Nebius said it has already secured as much as 1.2 GW of power and land for an AI factory at a new site in Pennsylvania.
Investors continued to boost Nebius stock when it announced it would also partner with fuel cell maker Bloom Energy to install additional power capacity for its data center build-out.
What to make of Nebius stock Revenue has grown stunningly alongside Nebius' data center expansion.
From sales of just $105 million in Q2 a year ago, the company reached an annual revenue run rate of $1.25 billion by the fourth quarter. That remarkable growth rate continues to accelerate. Management now anticipates exceeding $3 billion in revenue for 2026, concluding the year at a rate that could more than double once again in 2027.
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But the stock movement has also anticipated that growth, with shares rising more than 150% year to date and more than quadrupling over the last 12 months. It has reached a market cap of about $55 billion, which puts it at a lofty valuation even for its expected 2027 sales.
While demand is extremely strong, competitors like CoreWeave are also in the space. Any sign of a slowdown in spending for cloud capacity will likely hit shares of companies like Nebius and CoreWeave disproportionately compared to the tech sector as a whole.
That makes it a good candidate for investing over time. Long-term investors can purchase more as the stock corrects along the way. There's a good chance that better opportunities will come with the volatility.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.
Nebius zvýšil kapitálové výdaje pro rok 2026 na 20–25 miliard USD a potvrdil výhled ročního běžného výnosu na 7–9 miliard USD. Poptávka po jeho AI cloudu zůstává silná a pipeline vzrostl na rekordní úroveň.
Key Takeaways NBIS pipeline generation grew 3.5 times quarter over quarter to a record level amid strong demand.Nebius raised 2026 capital spending to $20B-$25B to expand capacity with customer commitments secured.NBIS reaffirmed 2026 revenue guidance as utilization, pricing and added capacity support growth. Nebius Group N.V. (NBIS - Free Report) is seeing strong momentum in customer demand, supported by a rapidly expanding sales pipeline and increasing adoption of its AI cloud platform. During the first quarter, the company reported that pipeline generation grew 3.5 times from the previous quarter, marking a record level. Management stated that the growing pipeline, together with strong customer demand, is driving continued investments in infrastructure, platform capabilities and capacity expansion. The company noted that several customers are typically competing for every GPU it brings online, while contract durations, average contract values and customer prepayments continue to increase.
Alongside growing demand, Nebius continues to expand its AI infrastructure and full-stack cloud platform. The company increased its contracted power capacity to more than 3.5 gigawatts and now targets at least 4 gigawatts by the end of 2026. It also announced a new Pennsylvania site capable of supporting 1.2 gigawatts of power. To strengthen its platform, Nebius acquired Tavily, Eigen AI and Clarifai, adding engineering talent and enhancing its inference optimization, agentic search and Token Factory capabilities.
The company highlighted its pipeline excludes strategic hyperscaler agreements such as Meta Platforms, Inc. (META - Free Report) and consists of qualified opportunities across its AI cloud and Token Factory offerings, serving AI-native companies, software vendors and enterprises. Nebius maintained strong win rates while shortening sales cycles, increasing average selling prices and securing customer wins across healthcare, life sciences, physical AI, automation and fintech.
For 2026, Nebius raised capital expenditure guidance to $20 billion-$25 billion from the previous $16 billion-$20 billion range. The increase reflects investments for 2027 capacity, with customer commitments already secured, including Meta. Management expects these investments to begin contributing to revenue during the first half of 2027.
Nebius reiterated its full-year 2026 guidance for annualized run-rate revenue of $7 billion-$9 billion, group revenue of $3 billion-$3.4 billion and a group adjusted EBITDA margin of around 40%. The company said utilization and pricing remain strong, while additional capacity will remain the key factor supporting growth throughout the year.
Taking a Look at NBIS’ CompetitorsMicrosoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Microsoft 365 Commercial cloud demand has been propelling Productivity and Business Processes revenue growth. ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services. Azure growth for the fourth quarter is projected to be 39-40% at cc, suggesting demand saturation, with customer demand exceeding available capacity. For the fourth quarter of fiscal 2026, Microsoft expects total company revenues between $86.7 billion and $87.8 billion, suggesting growth of 13% to 15%, with accelerating commercial growth partially offset by the consumer business.
CoreWeave (CRWV - Free Report) is seeing strong demand for inference-ready compute across GPU generations, which management expects to support long-term margin and earnings growth. The company also expects its storage business to grow rapidly, while software, CPU and networking offerings are each projected to exceed $100 million in ARR by 2026. AI adoption is expanding its customer base and platform opportunities as clients scale deployments across training, inference and agentic AI workloads. CoreWeave has surpassed 3.5 GW of contracted power capacity, secured more than $20 billion in financing and grown its backlog to nearly $100 billion, supporting growth through 2026 and 2027.
NBIS Price Performance, Valuation and EstimatesShares of Nebius have gained 4.4% in the past month against the Internet – Software and Services industry’s decline of 0.3%.
Image Source: Zacks Investment Research
On a price-to-book basis, NBIS’ shares are trading at 9.65X, above the Internet Software Services industry’s 4.21X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised significantly upward over the past 60 days.
Image Source: Zacks Investment Research
NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nebius po nedávném výprodeji zůstává asi 13 % pod historickým maximem, ale firma dál potvrzuje růstový příběh. Cílí na tržby 3 až 3,4 miliardy USD v roce 2026 a ARR 7 až 9 miliard USD.
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52-Week Range$43.89▼
$299.86P/E Ratio89.80
Price Target$203.25
Nebius Group NASDAQ: NBIS has been one of the standout AI stories in the market this year, with shares up almost 240% year to date. But the recent bout of AI-related volatility has tested the resolve of even the most committed believers in the neocloud thesis. After surging to an all-time high of $299.86 on June 22, the stock pulled back meaningfully as fears around AI valuations and the durability of the trade swept through the technology sector. Since reaching that all-time high earlier in June, the stock has fallen by almost 13%.
The question now facing investors is straightforward: Does Nebius' elevated valuation leave it dangerously exposed if those fears intensify, or is this still one of the best long-term ways to play the AI infrastructure buildout?
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Nebius Relief Rally Shows AI Sentiment Is StabilizingThe picture brightened considerably at the start of the week. On Monday, June 29, 2026, technology stocks caught a major bid, with memory, semiconductor, and neocloud names all outperforming. Some geopolitical relief appeared to ease pressure on the broader AI trade, and the higher-beta names that had sold off the hardest were among the biggest winners. Nebius rose almost 9% on the session, closing at $261.15.
Even after that move, however, the stock remains well off its peak. At current levels, NBIS sits almost 13% below its 52-week high. That is worth emphasizing because it captures the dynamic unfolding across much of the AI complex right now. Many of these names rallied hard on June 29, but a single strong session does not erase the damage from the recent selloff. Several leading AI infrastructure names, Nebius included, remain meaningfully below their recent peaks.
Nebius Valuation Leaves Little Room for ErrorOverall MarketRank™39th Percentile
Analyst RatingModerate Buy
Upside/Downside27.2% Downside
Short Interest LevelBearish
Dividend StrengthN/A
News Sentiment0.95 Insider TradingSelling Shares
Proj. Earnings GrowthGrowing
See Full Analysis
There is no avoiding the elephant in the room. Nebius trades at a price-to-sales ratio of roughly 80 and a trailing price-to-earnings (P/E) above 93. On any conventional measure, that is an extremely rich valuation, and it is precisely why the stock is so sensitive to shifts in sentiment around the AI trade. When a company is priced for years of hypergrowth, even small changes in the market's appetite for risk can produce outsized swings in the share price. That cuts both ways, as June 29's near-9 % jump demonstrated, but it does leave the stock vulnerable if AI fears genuinely intensify from here.
The bears have a legitimate point on this front. A stock trading at 75 times sales has very little margin for error. Any disappointment in execution, any slowdown in contracted revenue, or any broad derating of the AI infrastructure space could hit NBIS harder than its more reasonably valued peers.
Nebius Fundamentals Still Support the AI Growth ThesisThat said, the fundamental story underpinning the valuation has not deteriorated. If anything, it continues to strengthen. Nebius is guiding toward 2026 revenue of $3 billion to $3.4 billion, a staggering increase from the $529.80 million in annual sales it currently reports, and is targeting an annual recurring revenue (ARR) of $7 billion to $9 billion. The company has raised its contracted power capacity guidance to over 4 gigawatts by year-end. Its backlog of contracted revenue, anchored by major multi-year agreements with Meta NASDAQ: META and Microsoft NASDAQ: MSFT, provides forward visibility that few companies growing at this rate can match.
The recent news flow reinforces the trajectory. The 1.7 billion pounds (around $2.3 billion) UK expansion announced in early June, the move up the value stack through the Eigen AI acquisition, and the broader buildout across the US and Europe all point to a company executing aggressively against an enormous opportunity. This is not a speculative concept stock. It is a business converting hyperscaler demand into signed contracts and deployable infrastructure at a remarkable pace.
Nebius Stock: Worry and Opportunity Can CoexistThe honest answer is that both things can be true at once. The valuation genuinely does leave Nebius exposed to sharp drawdowns if AI sentiment sours, and investors should expect continued volatility. But the underlying business remains one of the best-positioned in the entire neocloud space, with contracted revenue visibility, accelerating expansion, and a clear runway for years of growth ahead.
For long-term investors who believe in the AI infrastructure thesis and can stomach the swings, the recent pullback, with the stock still sitting almost 13% below its high even after the surge on June 29, may represent a more attractive entry than chasing the stock at its peak. The key takeaway is this: the selloff was a sentiment event, not a fundamental one. As long as Nebius continues to execute, the long-term thesis remains very much intact.
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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Nebius Group spustila Nebius AI Cloud Aether 3.6 s asistentem Echo pro cloudové operace a novými bezpečnostními a governance funkcemi. Zlepšila také úložiště, včetně 30% vyšší čtecí propustnosti Object Storage s jednovláknovými klientskými připojeními a podpory clusterů až do 100 PB.
Key Takeaways Nebius Group launched AI Cloud Aether 3.6, introducing Echo for AI-powered cloud operations.NBIS added managed SkyPilot, customer-managed encryption keys and governance upgrades.Nebius Group boosted storage with higher bandwidth, IOPS gains and support for 100 PB clusters. As AI adoption accelerates, cloud providers need intelligent infrastructure, security, operational efficiency and developer-friendly experiences. Addressing these evolving needs, Nebius Group N.V. (NBIS - Free Report) has unveiled Nebius AI Cloud Aether 3.6, a wide range of enhancements focused on developer productivity, enterprise-grade security, governance and storage performance. The release also marks the debut of Nebius Echo, an AI-powered infrastructure assistant that represents NBIS’ vision for agentic cloud computing.
Echo can answer cloud-related questions and execute core infrastructure operations while incorporating built-in guardrails to prevent accidental or unsafe actions. Powered by open-source models running on Nebius Token Factory, the assistant is designed specifically for production cloud environments. This first preview supports core cloud services, while Nebius has outlined an ambitious roadmap that includes infrastructure debugging, multi-step infrastructure provisioning, infrastructure-as-Code deployments and smarter resource recommendations.
A notable enhancement is the Managed Service for SkyPilot, providing one-click integration without requiring teams to maintain their own control plane. This simplifies multi-cloud AI workload orchestration while reducing operational overhead. Also, it rolled out several enterprise-focused capabilities that strengthen data protection and governance. A new Key Management Service enables organizations to manage their own encryption keys using Customer-Managed Encryption Keys.
Additional storage enhancements include a 30% increase in read bandwidth for Object Storage with single-threaded client connections, three times more IOPS for 4 KB file operations, up to 100 times higher metadata IOPS for metadata-heavy workloads and shared filesystem validation supporting clusters up to 100 PB. AI Cloud 3.6 meets the growing demand for autonomous, production-ready AI infrastructure. As enterprises adopt agentic AI, Nebius is evolving beyond a cloud provider with AI-powered tools like Nebius Echo, while ongoing infrastructure investments and partnerships strengthen its competitive edge in the AI cloud market.
NBIS vs. AI Rivals: A Competitive ComparisonCoreWeave, Inc. (CRWV - Free Report) recently demonstrated the strength of its AI-native cloud platform in the MLPerf Training v6.0 benchmark, completing the training of the DeepSeek-V3 671B model in just 2.02 minutes using 8,192 NVIDIA GB300 NVL72 GPUs. It served as a powerful validation of the company's AI cloud platform, poised to accelerate customer adoption while strengthening its competitive position. It also became the first AI cloud provider to complete the bring-up and full system-level validation of NVDA Vera Rubin NVL72, a next-generation AI platform, positioning CRWV at the forefront of next-generation AI infrastructure and strengthening its competitive advantage in the rapidly expanding AI cloud market.
Microsoft (MSFT - Free Report) capitalizes on AI business momentum and Copilot adoption alongside Azure cloud infrastructure expansion. The Azure AI platform continues to benefit from demand across AI and non-AI services, with customer demand exceeding available capacity. It added another GW of capacity during the quarter and remains on track to double its overall data center footprint within two years. New data center investments were announced across four continents. In May, it signed new agreements with U.S. and U.K. government partners, the Center for AI Standards and Innovation and the AI Security Institute to advance AI testing and safety evaluation frameworks.
NBIS Price Performance, Valuation and EstimatesShares of Nebius have gained 187.1% year to date compared with the Internet–Software and Services industry’s growth of 14.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, NBIS trades at a forward price-to-sales of 8.83X, higher than the industry’s 4.3X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised upward over the past 60 day
Image Source: Zacks Investment Research
NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nebius má po 1. čtvrtletí 2026 v hotovosti 9,3 mld. USD a zvýšil capex pro rok 2026 na 20–25 mld. USD. Firma říká, že poptávka převyšuje nabídku a volná kapacita je vyprodaná.
Key Takeaways Nebius ended Q1 2026 with $9.3B in cash after debt, equity and upfront-payment inflows.Nebius lifted 2026 capex guidance to $20B-$25B as it accelerates capacity expansion.Nebius says demand exceeds supply, available capacity is selling out and 2027 commitments are in place. Nebius Group N.V. (NBIS - Free Report) has built a sturdy cash profile with $9.3 billion in cash and cash equivalents at the end of the first quarter of 2026. A strong cash position offers ample financial flexibility to pursue expansion, both organic and inorganic.
The cash build was driven by various financial initiatives, including a $4.3 billion convertible debt raise (gross proceeds) and a $2 billion equity investment from NVIDIA, alongside customer upfront payments that boosted operating cash flow to $2.3 billion for the quarter.
This fortified balance sheet comes at a time when Nebius is rapidly focused on capacity expansion, which has led to a sharp acceleration in capital expenditures. Capex for 2026 is now expected to be $20-$25 billion, up from its earlier guidance of $16-$20 billion.
Management noted that the capacity deployment is tied to visibility into future demand, particularly for 2027, for which it already has customer commitments in place. The company also noted that it is already selling out the available capacity, with demand consistently exceeding supply, implying that spending is less speculative and more about meeting anticipated workloads.
Importantly, Nebius is using various sources to fund capacity expansion. The company is raising capital through asset-backed financing buoyed by its contracts with Meta and Microsoft (MSFT - Free Report) . Other financing options include corporate-level debt and an at-the-market program.
With demand continuing to exceed supply and most capacity already sold out, Nebius appears well positioned to convert its cash strength into capacity expansion. While execution remains key, the company’s sizable cash and funding flexibility provide a strong foundation to scale its AI cloud platform. However, the opportunity is unfolding in a highly competitive space with tech giants and pure plays like CoreWeave (CRWV - Free Report) aggressively focused on capacity build to capture a rapidly developing market.
Taking a Look at Competitors’ Financial ResourcesCoreWeave is shoring up its financial resources to support AI infrastructure buildouts. At the first quarter-end, the company had more than $3.3 billion in cash, cash equivalents, restricted cash and marketable securities, while securing more than $20 billion in debt and equity capital financing year to date (as announced on the last earnings call), widening access to capital while lowering its cost of debt.
Like NBIS, the company also raised $2 billion in equity tied to its NVIDIA partnership. CRWV has dramatically accelerated investments to keep up with AI demand. 2026 capital expenditures are projected to be between $31 billion and $35 billion, reflecting the broad scale of its AI infrastructure ambitions.
Microsoft’s financial resources are stupendous. As of March 31, 2026, cash, cash equivalents and short-term investments stood at $78.3 billion. For the last reported quarter, the company generated $46.7 billion in operating cash flow, up 26% year over year, while free cash flow stood at $15.8 billion despite accelerated capital spending. MSFT is scaling investments, with fiscal third-quarter capital expenditures hovering at $31.9 billion. Fiscal fourth-quarter capex is expected to exceed more than $40 billion, reflecting the continued buildout of AI infrastructure.
For calendar 2026, Microsoft plans to invest approximately $190 billion in capex, including about $25 billion attributed to component pricing pressures, underscoring both scale and inflationary pressures in AI infrastructure. Increasing capital intensity remains a key concern for investors. MSFT's long-term debt (including the current portion) was $40.3 billion as of March 31, 2026.
NBIS Price Performance, Valuation and EstimatesShares of Nebius are up 40.6% in the past month compared with the Internet – Software and Services industry’s 11.3% growth.
Image Source: Zacks Investment Research
On a forward price-to-sales basis, NBIS’ shares are trading at 10.62X, above the Internet Software Services industry’s 4.53X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised upwards over the past 60 days.
Image Source: Zacks Investment Research
NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nebius Group (NBIS 6.44%) has come a long way in a short time. The company was formed in 2024, emerging from the remnants of the Dutch holding company Yandex N.V., which was primarily a Russian internet company. But after Russia invaded Ukraine and Russian companies faced sanctions, Yandex shed its Russian assets and rebranded as Nebius, an artificial intelligence cloud services company.
The newly formed Nebius began trading on Nasdaq on Oct. 21, 2024, and has been one of the biggest winners in the market ever since. The stock is up 1,320% since Nebius began trading, by far outperforming the overall market as investors recognized the critical role that data centers and computing capacity will have on the growth of AI. Shares jumped nearly 30% in the last week and are challenging the $300 mark.
Now, Nebius is getting some more good news -- starting June 22, it will be a member of the Nasdaq-100 index, meaning the stock will be scooped up by many index funds, potentially pushing shares even higher.
Let’s take a closer look at Nebius and why it’s been so popular.
Image source: The Motley Fool.
About Nebius stockNebius appears to have the right business model at the perfect time. The company provides cloud computing and graphics processing unit (GPU) capacity for running and training AI workloads.
The company operated seven data centers in North America, Europe, and Israel by the end of 2025, and has plans to operate 16 by the end of this year.
It also has some key partnerships. In March, Nebius announced a $2 billion investment from Nvidia to scale more than 5 gigawatts of next-generation full-stack AI capacity using Nvidia’s computing platform.
Nebius also has a five-year AI infrastructure deal with Microsoft, valued at up to $19.4 billion, to supply dedicated GPU capacity and more than 100,000 Nvidia GPUs. And it has commitments from Meta Platforms for additional AI infrastructure capacity, potentially valued at up to $27 billion.
Earnings for the first quarter included revenue of $399 million, up 684% from a year ago, and net income from operations of $621.2 million, up from a loss of $104.3 million in the first quarter of 2025.
Nebius also completed its acquisition of Eigen AI on June 10. Eigen, an inference and model optimization company, is expected to help Nebius improve its token factory inference platform, providing customers with faster time to production and the ability to adopt new models more quickly.
Management says the company is on track to see $3 billion to $3.4 billion in revenue this year, and between $7 billion and $9 billion in annual recurring revenue (ARR). The company had $9.3 billion in cash on hand at the end of the first quarter and raised $6.3 billion in the quarter through convertible notes and the Nvidia investment.
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“We continue to see unprecedented demand across the market,” CEO Arkady Volozh said. “Compute and cloud needs are vastly exceeding capacity as more industries embrace AI and companies move beyond experimentation to real-world applications. We are seeing this demand firsthand and are capturing it with our full-stack AI-native cloud.”
About the Nasdaq-100The Nasdaq-100 tracks the 100 largest non-financial companies on the Nasdaq exchange, using a modified market-cap weighting system that caps the largest names to prevent the index from becoming overconcentrated. There are many exchange-traded funds that track the Nasdaq-100, including the Invesco QQQ Trust, or the Direxion Nasdaq-100 Equal Weighted Index ETF.
Nasdaq announced on June 11 that it was adding Nebius, Astera Labs, CoreWeave, Rocket Lab, and Teradyne to the index. The index will drop Charter Communications, Cognizant Technology Solutions, Insmed, Verisk Analytics, and Zscaler.
Nebius stock jumped nearly 10% on the announcement.
Patrick Sanders has positions in Invesco QQQ Trust, Nebius Group, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, Nvidia, Rocket Lab, Teradyne, Verisk Analytics, and Zscaler. The Motley Fool recommends Astera Labs, Cognizant Technology Solutions, and Nasdaq. The Motley Fool has a disclosure policy.
CBRE hlásí historicky nízkou neobsazenost datacenter a rostoucí ceny, zatímco Nebius uvedl tržby 399 milionů USD, backlog přes 50 miliard USD a kapacitu nad 3,5 GW.
Artificial intelligence is creating a new kind of infrastructure race. While investors often focus on Nvidia (NASDAQ:NVDA | NVDA Price Prediction) chips or the latest AI models, the real bottleneck is increasingly becoming physical capacity — power, land, and data centers.
The latest global data center report from CBRE shows that demand continues to outpace supply across nearly every major market in the world. Vacancy rates have fallen to historic lows, pricing continues to rise, and new facilities are being leased before construction is complete. For investors, that creates a powerful backdrop for companies that already control large-scale AI infrastructure.
Few companies are positioned more directly at the center of that trend than Nebius Group (NASDAQ: NBIS).
The AI Infrastructure Crunch Is Getting Worse According to CBRE’s Q1 2026 Global Data Center Trends Report, North America remains the tightest data center market in the world, with overall vacancy rates falling to just 0.9%.
The largest markets are effectively sold out:
Market Vacancy Rate Northern Virginia 0.3% Atlanta 1.0% Dallas-Fort Worth 1.8% Chicago 2.2% Those numbers are key because vacancy is the industry’s inventory. When available capacity approaches zero, customers have fewer options and providers gain pricing power.
CBRE reported that the four largest North American markets absorbed 2.2 gigawatts (GW) of capacity over the last year, a 34% increase from the prior period. Dallas-Fort Worth offers perhaps the clearest example of the imbalance. Of the 716.7 megawatts currently under construction, 88% has already been pre-leased. Customers are reserving space before the buildings are finished because they cannot risk waiting.
The same trend is appearing globally. CBRE found average monthly colocation pricing reached approximately $403 per kilowatt in Singapore and roughly $340 to $350 in Tokyo. Capacity is becoming a premium asset.
According to the company’s first-quarter 2026 earnings release:
Revenue reached $399 million, up 684% year over year. AI cloud revenue expanded 841%. Contracted backlog exceeded $50 billion. Total power capacity surpassed 3.5 GW. Those backlog figures are particularly important because they represent long-term customer commitments rather than speculative forecasts.
Among the largest agreements are a reported $17.4 billion commitment from Microsoft (NASDAQ:MSFT) through 2031 and a $27 billion five-year contract with Meta Platforms (NASDAQ:META). Together, those deals alone represent infrastructure demand that stretches years into the future.
Power has become the limiting factor in AI expansion, and Nebius already controls capacity that many rivals are still attempting to secure.
Nvidia’s Backing Creates Another Advantage The second pillar of the bull case is access to GPUs. Nvidia holds an equity stake in Nebius. Because AI infrastructure growth depends on obtaining enough advanced processors to meet customer demand, Nebius benefits from a direct relationship with the company supplying much of the world’s AI computing hardware. Many cloud providers are left competing for limited GPU allocations,
Nebius stock has gained 239% year-to-date and 492% over the last 12 months. Yet even after that rally, shares trade at roughly five times management’s projected exit annual recurring revenue.
Granted, high-growth AI stocks carry risk. Execution, customer concentration, and valuation all matter. That said, the CBRE data suggests the underlying market conditions remain exceptionally favorable.
Key Takeaway In short, CBRE’s latest report confirms that the global shortage of AI-ready data center capacity is intensifying rather than easing. Vacancy rates remain near zero, demand continues to exceed new supply, and pricing is moving higher across major markets.
Nebius sits at the intersection of all three trends: AI demand, power availability, and GPU access. With revenue growing 684%, a $50 billion backlog already in place, and more than 3.5 GW of contracted power capacity, the company possesses assets that are becoming harder to find each quarter.
Ultimately, if the global AI infrastructure shortage persists through 2027 as CBRE’s data suggests, a further 40% gain for Nebius stock by the end of the year looks less like an aggressive target and more like a plausible outcome.
Nebius letos stoupl asi o 240 %, ale po 684% růstu tržeb na 399 milionů USD v prvním čtvrtletí je podle článku už drahý. Nvidia do něj letos investovala 2 miliardy USD.
Buying a stock in the midst of a red-hot rally can be risky because it may eventually run out of steam. It's particularly concerning when the valuation has already gotten out of control and no longer has a grounding in fundamentals.
That's the scenario that investors find themselves in with Nebius Group (NBIS 6.44%). The tech stock is up around 240% this year. It's generated incredible growth, attracted an investment from Nvidia, and still offers attractive long-term opportunities, but there's no denying the stock has become expensive.
Is the stock still a good buy right now, or are you better off just putting Nebius on your watch list?
Image source: Getty Images.
Why has Nebius' stock been taking off this year? Nebius is a Dutch-based tech company that's right at the heart of the artificial intelligence (AI) revolution. It is an AI cloud company that provides a platform for businesses to train and deploy AI. It serves a variety of sectors, including healthcare, financial services, and retail, among others.
A quick look at its results confirms the growth has been incredible. During the first three months of the year, the company reported $399 million in revenue, which is an increase of 684% year over year. Although its operating loss actually increased from the prior-year period, investors appear to be willing to overlook that given Nebius' incredible top-line growth and continued growth opportunities.
Plus, with Nvidia announcing a strategic partnership with Nebius earlier this year that includes a $2 billion investment, investors likely see that as a strong vote of confidence in its future.
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Can Nebius stock rise even higher? Due to its significant run-up in value, Nebius stock now trades at close to 90 times its trailing revenue. Even with tremendous growth ahead, it may be a steep price to pay for the stock, given that CoreWeave, a comparable business that helps tech giants train and run AI models, trades at less than 10 times sales.
At its current valuation, Nebius investors are paying for a lot of future growth, which means expectations will be high and potentially difficult to meet in upcoming earnings reports. Although Nebius has performed exceptionally well this year, I wouldn't buy it right now as there's considerable downside risk given how hot the stock has become. It may be a good idea to track the stock and keep an eye on it, but at an egregiously high premium, it could be running out of room to rise higher.
