Nebius Group (NBIS) is the AI cloud company, delivering a unified, full-stack platform spanning the complete AI journey, from data ingestion, model training, and fine-tuning to production deployment and inference. Amsterdam-headquartered and Nasdaq-listed, Nebius was born from Yandex's non-Russian assets and has rapidly evolved into one of the most strategically positioned AI-native hyperscalers in the world.
Under a landmark strategic partnership, Nvidia (NVDA) has committed a $2 billion equity investment in Nebius, enabling the deployment of more than 5 gigawatts of Nvidia compute capacity by 2030. Combined with a $27 billion, five-year capacity agreement with Meta Platforms (META) and a $17 billion revenue agreement with Microsoft (MSFT), Nebius has assembled approximately $46 billion in multi-year AI cloud contracts, making it one of the most hyperscaler-validated pure-play AI infrastructure companies available to public market investors today.
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Nebius Stock Surges
NBIS has surged 303.14% over the past 52 weeks, trading between a 52-week low of $43.89 and a high of $278.84, reflecting explosive investor enthusiasm for its hyperscaler contract wins, Nvidia partnership, and capacity buildout momentum. The stock jumped 15.72% on Q1 2026 earnings day alone, underlining how rapidly institutional sentiment is shifting toward this emerging AI cloud giant.
Against the Nasdaq Composite's ($NASX) approximately 8.29% YTD return in 2026, NBIS has dramatically outperformed the broader index at 152.9%, cementing its status as one of the highest-beta, highest-conviction AI infrastructure growth stories in the public markets today.
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www.barchart.com Nebius Outperforms Market
Nebius reported Q1 2026 revenue of $399 million, up a staggering 684% year-over-year (YOY), surpassing the analyst consensus of $391.6 million, while adjusted EPS came in at a loss of $0.33, beating the Street estimate of -$0.73 by approximately 55%. Nebius AI revenue reached $390 million with an annualized run rate of $1.9 billion, up over 50% from $1.25 billion in the prior quarter, as the company consistently sold out capacity with multiple customers competing for each GPU cluster.
Group adjusted EBITDA reached $129.5 million at a 32% margin, while the core Nebius AI business expanded its adjusted EBITDA margin to 45% from 24% in Q4 2025. Operating cash flow surged to $2.3 billion, versus an outflow of $198 million a year prior, driven by substantial customer prepayments, while cash and equivalents reached $9.3 billion after raising over $6 billion year-to-date (YTD), including $4.3 billion in convertible senior notes and Nvidia's $2 billion equity investment.
Management reiterated full-year 2026 guidance for group revenue of $3.0 - $3.4 billion, an annualized run rate of $7 - $9 billion, and a group adjusted EBITDA margin of approximately 40%, while raising 2026 capital expenditure guidance to $20 - $25 billion, up from the prior $16 - $20 billion range, to fund pre-committed 2027 capacity that is expected to begin generating revenue in H1 2027.
Nebius Partners with Nvidia
Nebius Group shares surged over 5% after announcing the launch of its Physical AI Living Lab, developed in partnership with Nvidia, to accelerate UK and European robotics startups from simulation to real-world deployment.
The six-month program, with its first cohort beginning in September 2026, gives participating startups full access to Nvidia's physical AI stack, Nebius AI Cloud infrastructure, and direct engineering support, all powered by Nvidia's RTX PRO 6000 Blackwell Server Edition GPUs running on Nebius' U.K. infrastructure. With plans to expand the initiative globally over time, the launch further deepens Nebius' strategic partnership with Nvidia and reinforces its rapidly growing positioning as the go-to AI cloud platform for next-generation physical AI and robotics workloads.
Should You Invest in NBIS?
With the Nvidia-backed Physical AI Living Lab marking yet another deepening of Nebius' most critical strategic partnership, the company's positioning at the intersection of AI cloud, robotics, and physical AI infrastructure continues to strengthen. However, Wall Street's consensus reflects a stock that has largely caught up to its near-term fair value. NBIS carries a "Moderate Buy" rating across 15 analyst ratings, comprising 8 "Strong Buy" and 7 "Hold," with a mean price target of $234.08, implying 10.6% upside from current levels.
For long-term investors, NBIS remains a high-conviction AI infrastructure compounder, but patience and disciplined entry points are essential given its premium valuation and pre-profitability status.
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www.barchart.com On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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