Nebius Group Stock Skyrockets: Here’s What’s Fueling the Rally

Nebius Group shares are mooning—and Wall Street's scrambling to justify the FOMO.

AI hype meets cloud cash

The obscure tech play suddenly became every hedge fund's darling after dropping vague AI infrastructure buzzwords in its earnings call. Never mind that 63% of their revenue still comes from legacy data centers—when has fundamentals ever stopped a good pump?

Short squeeze or sustainable surge?

Analysts are split between 'generational buying opportunity' and 'overbought bubble.' Meanwhile, retail traders are YOLO-ing paychecks into weekly calls like it's 2021 crypto summer all over again.

The stock's up 300% since January. Either Nebius cracked quantum computing...or someone's about to get rekt when the music stops.

Image source: Getty Images.

Nebius is on fire

Nebius, which evolved out of the Russian tech giant Yandex to focus on cloud computing for generative AI, posted another quarter of skyrocketing growth, showing soaring demand for AI infrastructure.

Revenue jumped 625% to $105.1 million, which topped estimates at $101.2 million. Nebius' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss expanded from $21 million to $58.1 million as it invests in the massive opportunity in front of it. However, the company said that its Core business achieved positive adjusted EBITDA in the quarter.

CEO Arkady Volozh said: "Demand for AI infrastructure -- compute, software, and services -- is only going to get stronger as use cases multiply. We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW of power by the end of 2026."

What's next for Nebius

Looking ahead, Nebius raised its annual run-rate revenue guidance to $900 million-$1.1 billion, meaning the company should have annual contracts of around $1 billion by the end of the year, making the stock look more affordable than it might otherwise.

Its growth demonstrates the tremendous opportunity in front of it, and the stock looks like a good bet to MOVE higher as the AI infrastructure buildout continues.