Nebius Group's AI Cloud Business Sees Staggering Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy NBIS?
Source: Fool
- Significant Revenue Growth: Nebius Group's first-quarter revenue surged 684% year-over-year to $399 million, with its core AI cloud business growing 841%, highlighting the company's strong demand and market position in AI infrastructure.
- Improved Profitability: Adjusted EBITDA swung from a $54 million loss last year to a $130 million profit, with the AI cloud segment's EBITDA margin nearly doubling to 45%, indicating substantial progress in cost control and profitability.
- Major Customer Agreements: Nebius signed a deal with Meta valued at up to $27 billion, including a $12 billion fixed compute commitment and a $15 billion flexible capacity option, further solidifying its critical role in the AI ecosystem.
- Increased Capital Expenditure Plans: Management raised its 2026 capital spending plan to $20 billion to $25 billion, and despite an adjusted net loss widening to $100 million, the company is actively seeking financing through asset-backed debt and an at-the-market equity program.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to fall
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 219.940
Low
130.00
Averages
164.20
High
211.00
Current: 219.940
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.
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- Improved Profitability: Adjusted EBITDA swung from a $54 million loss last year to a $130 million profit, with the AI cloud segment's EBITDA margin nearly doubling to 45%, indicating substantial progress in cost control and profitability.
- Major Customer Agreements: Nebius signed a deal with Meta valued at up to $27 billion, including a $12 billion fixed compute commitment and a $15 billion flexible capacity option, further solidifying its critical role in the AI ecosystem.
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See More
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- Leasing Agreement Outlook: Keel expects to sign three leasing agreements this year for AI data centers with capacities of 350 megawatts, 110 megawatts, and 18 megawatts, and while it has yet to secure a major tech partnership, these potential contracts could significantly enhance its market value.
- Capital Raising Strategy: Operating in a capital-intensive industry, Keel raised $500 million through convertible notes with a 1.375% annual yield, providing necessary funding for future infrastructure expansion while minimizing costs associated with AI chip supply.
See More
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- Future Growth Potential: With the ongoing demand for AI data centers, Keel anticipates that its 1.3 gigawatt Scrubgrass site will be a key driver of long-term growth, although the approval process is lengthy, successful completion will significantly enhance the company's market position.
See More
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- Significant Revenue Growth: Nebius Group's first-quarter revenue surged 684% year-over-year to $399 million, with its core AI cloud business growing 841%, highlighting the company's strong demand and market position in AI infrastructure.
- Improved Profitability: Adjusted EBITDA swung from a $54 million loss last year to a $130 million profit, with the AI cloud segment's EBITDA margin nearly doubling to 45%, indicating substantial progress in cost control and profitability.
- Major Customer Agreements: Nebius signed a deal with Meta valued at up to $27 billion, including a $12 billion fixed compute commitment and a $15 billion flexible capacity option, further solidifying its critical role in the AI ecosystem.
- Increased Capital Expenditure Plans: Management raised its 2026 capital spending plan to $20 billion to $25 billion, and despite an adjusted net loss widening to $100 million, the company is actively seeking financing through asset-backed debt and an at-the-market equity program.
See More
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- Market Status Analysis: The video indicates that there is currently no dip to buy in the AI and semiconductor sectors, suggesting that the market remains at a high level and investors should proceed with caution.
- Investment Recommendations: It advises investors to consider other stocks for investment, implying that there are more attractive opportunities in the market that could divert funds away from AI and semiconductors.
- Video Content Overview: Published on May 13, 2026, the video aims to provide viewers with insights into the AI and semiconductor markets, emphasizing the importance of timing in investment decisions.
- Subscription and Offers: The video encourages viewers to subscribe to the channel and click on a special offer link, indicating the content creator's desire to enhance viewer engagement and channel influence.
See More
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- Price Target Adjustment: Luria lowered CoreWeave's price target from $175 to $100, reflecting a cautious outlook on its future earnings potential, which may impact investor confidence in the stock.
- Nebius Performance Assessment: For Nebius, Luria believes the company deserves a 'premium valuation,' but may need a breather in the short term as its stock has significantly outperformed over the past year, becoming a staple in AI trading.
- Price Target Setting: The price target for Nebius is set at $250, indicating that while its current valuation is justified, the analyst believes the upside may be capped in the short term, reflecting a cautious stance on market volatility.
See More
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- CoreWeave's Rapid Growth: CoreWeave reported a remarkable 112% revenue growth in Q1, reaching $2.1 billion, with a backlog of nearly $100 billion indicating robust market demand; if it can achieve profitability, Nvidia's investment could yield substantial returns.
- Nebius's Astonishing Growth: Nebius achieved $399 million in revenue during Q1, growing at an impressive 684%, and its full-stack solutions appeal to a wide range of clients, positioning it as a potential major cash cow in the AI computing market.
- Debt Burden Challenges: Despite rapid expansion, both companies face significant debt loads that could hinder profitability; balancing debt with capital expenditures will be crucial for future growth, while Nvidia's backing provides a strategic advantage.
See More
