Nebius Aims for 2.5GW Contracted Power by 2026, Shares Up 207% YTD
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Power Supply Target: Nebius aims to secure 2.5 gigawatts of contracted power by the end of 2026, significantly up from its previous goal of 1 gigawatt in August, addressing a key bottleneck in global AI infrastructure development and enhancing its market competitiveness.
- Significant Revenue Growth: The company reported a 355% year-over-year increase in third-quarter revenues to $146 million, demonstrating strong execution in quickly converting new capacity into revenue, which is crucial for sustaining growth.
- Long-Term Contract Security: Nebius has entered into five-year agreements worth $3 billion with Meta and $17.4 billion with Microsoft, ensuring revenue visibility for the coming years, with an expected annualized run rate of $7 billion to $9 billion by 2026.
- Massive Market Potential: Analysts forecast Nebius's revenues will surge from $555.9 million in 2025 to $27.1 billion by 2031, and if its price-to-sales ratio compresses to 8.5, its market capitalization could exceed $230 billion, indicating substantial long-term investment value.
Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NBIS is 164.20 USD with a low forecast of 130.00 USD and a high forecast of 211.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 85.170
Low
130.00
Averages
164.20
High
211.00
Current: 85.170
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
