Nebius Plans to Contract 2.5GW Power by 2026, Projecting Annual Revenue Up to $9 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21h ago
0mins
Source: Fool
- Surging Market Demand: Nebius initially planned to contract for 1GW of power by 2026, but has adjusted this to 2.5GW due to soaring demand, highlighting its strong market position in AI infrastructure.
- Significant Revenue Projections: The company expects annualized revenue to reach between $7 billion and $9 billion by 2026, a substantial increase from $551 million in Q3, reflecting its immense potential in the generative AI market.
- Profitability Outlook: Although currently unprofitable, Nebius could generate nearly $2 billion in annual profits by 2026 if it achieves a 35% operating margin, indicating significant long-term growth potential.
- Attractive Market Valuation: With a current market cap of $23 billion, Nebius is projected to trade at around 12 times future earnings if profit expectations are met, showcasing its investment value and growth opportunities.
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: 96.210
Low
130.00
Averages
164.20
High
211.00
Current: 96.210
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.
