Nebius Group N.V. NBIS stock has surged 253.5% in the past year, outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry’s growth of 28.7% and 11.4%, respectively. The S&P 500 composite is up 21.6% over the same time frame. The company’s shares have jumped 23% in a month.
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NBIS has outpaced its peers, NVIDIA Corporation NVDA, Microsoft Corporation MSFT and CoreWeave, Inc. CRWV, with NVDA up 10.4%, MSFT increasing 21.5% and CRWV decreasing 12.7% in the past three months.
Following its strong rally, investors may wonder whether NBIS still has substantial upside potential or whether the stock’s valuation already reflects much of its growth prospects. A closer look at the company’s key strengths, growth drivers and challenges can help assess whether the current levels present an attractive opportunity.
Factors to Consider for NBIS
Nebius continues to see enormous demand for its AI infrastructure, supported by strong customer interest across AI-native companies, neoclouds and sophisticated enterprises. During the second quarter of 2026, the company closed four landmark core AI cloud deals, each valued atmore than $1 billion. These competitive wins were driven by Nebius’ scale, performance and reliability, while the company’s pipeline also includes multiple opportunities valued at more than $1 billion.
The company delivered triple-digit revenues and ARR growth in the second quarter, with group revenues increasing 454% year over year to $582 million and annualized run-rate revenues reaching $3 billion. Growth was supported by additional capacity, higher utilization, infrastructure efficiency and contributions from the asset-light model, Token Factory and recent acquisitions. Adjusted EBITDA rose to $236 million, while the adjusted EBITDA margin expanded to 41% from 32% in the previous quarter.
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Nebius is expanding its capacity pipeline and has raised its year-end contracted power target to 5 gigawatts. The company’s asset-light partnership model provides another avenue to scale by allowing partners to finance, build and operate facilities while Nebius supplies its full-stack platform and customer demand. NBIS also launched a capacity auction that cleared at a price 15% above its previous highest price, highlighting the value of its Blackwell capacity.
For 2026, Nebius reaffirmed annualized run-rate revenue guidance of $7 billion to $9 billion, Group revenues of $3 billion to $3.4 billion and Group adjusted EBITDA margin of approximately 40%. The company expects to deploy significantly more capacity in 2027, while 2027 formal guidance will be provided later this year.
