Shares of artificial intelligence (AI) cloud infrastructure provider Nebius Group (NBIS) have been surging onto Wall Street’s radar lately, and a big reason behind the excitement is none other than chip giant Nvidia (NVDA). During Nvidia’s latest earnings call, CFO Colette Kress revealed that rental prices for its legacy Hopper (H100) GPUs have surged 20% year-to-date (YTD), while older A100 cloud pricing has climbed nearly 15%.
In a rare twist for the tech industry, older chips are becoming more expensive instead of cheaper, and that trend is proving to be a major win for Nebius. As a fast-growing neocloud operator, Nebius is built around buying massive clusters of Nvidia GPUs and renting them out by the hour to AI developers, startups, and enterprises racing to build AI applications. With Nvidia confirming that GPU rental demand continues to outstrip supply, Nebius quickly moved to capitalize on its newfound pricing power.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
The company announced that it would raise on-demand H100 GPU rental rates to $3.85 per hour from $2.95, marking a sharp nearly 29% increase, while prices for its preemptible GPU capacity jumped an even steeper 51%. Investors wasted no time reacting, sending Nebius shares soaring nearly 14.7% on May 21. But Nvidia-fueled pricing power is only part of the story behind Wall Street’s growing enthusiasm for Nebius.
On May 21, the data center operator also unveiled a strategic partnership with Bloom Energy (BE) to bring Bloom’s advanced fuel-cell technology into Nebius’ rapidly expanding AI factories. The deal strengthened investor optimism by highlighting Nebius’ push to secure scalable and energy-efficient infrastructure as AI computing demand explodes. With these powerful tailwinds now in play, here’s a closer look at Nebius.
About Nebius Stock
For those unfamiliar with Nebius Group, the company is an emerging AI cloud infrastructure provider that specializes in supplying the massive computing power needed to train and run AI models. Headquartered in Amsterdam and formed in 2024 following the restructuring of Yandex’s international assets, Nebius operates as a neocloud platform, building large-scale GPU clusters powered primarily by Nvidia chips and renting that capacity to AI startups, enterprises building AI products, and developers.
Beyond raw computing infrastructure, the company offers cloud platforms and AI-focused tools designed to support the growing wave of generative AI applications. In addition to its AI cloud operations, Nebius Group owns a portfolio of technology businesses, including Avride, a developer of self-driving vehicles and delivery robots, and TripleTen, a fast-growing education technology platform focused on reskilling people for careers in technology.
Further, Nebius maintains equity stakes in several other tech companies, including ClickHouse and Toloka. With a market capitalization of $55.65 billion, the company has emerged as a rising Wall Street favorite as booming AI demand continues to drive massive investment in AI infrastructure. Over the past year, shares of Nebius have exploded nearly 462.21%, leaving the broader S&P 500 Index ($SPX) and its 28.08% gain, far behind.
The rally has remained red-hot in 2026, with the stock already soaring 153.89% YTD compared to the broader market’s modest 9.31% return. After hitting a 52-week high of $233.73 on May 14, Nebius is still trading just 8.6% below its peak, highlighting the powerful momentum and growing investor enthusiasm surrounding the AI infrastructure play.
www.barchart.com 
www.barchart.com Inside Nebius’ Q1 Earnings Report
Nebius delivered a blockbuster fiscal 2026 first-quarter earnings report on May 13, crushing Wall Street expectations and reinforcing its position as one of the fastest-growing players in the AI cloud infrastructure market. Revenue skyrocketed an astonishing 684% year-over-year (YOY)to $399 million, compared to just $50.9 million in the prior-year quarter and comfortably topped Wall Street’s consensus estimate of $388.57 million, as demand for AI computing capacity continued to surge worldwide.
The explosive growth was driven overwhelmingly by Nebius’ core AI cloud business, which contributed roughly 98% of total revenue as enterprises and AI developers raced to secure access to high-performance GPU clusters. In fact, AI cloud revenue alone surged an eye-popping 841% YOY to $389.7 million in Q1 2026. Momentum across the business remained exceptionally strong.
Annualized run-rate revenue (ARR) climbed to $1.92 billion by the end of March, marking a staggering 674% increase from a year ago and a sharp 54% jump from the $1.25 billion reported at the end of December 2025. At the same time, Nebius posted a dramatic swing toward profitability. The company reported GAAP net income of $621.2 million, a major turnaround from the $104.3 million net loss recorded in the first quarter of 2025.
Earnings came in at $2.11 per share, compared to a loss of $0.44 per share a year earlier. The sharp improvement in profitability was supported in part by non-cash valuation adjustments, while group adjusted EBITDA swung firmly into positive territory at $129.5 million. The company’s core AI cloud business remained the primary earnings engine, generating adjusted EBITDA of $174 million alongside an impressive 45% adjusted EBITDA margin.
And, Nebius significantly strengthened its financial position during the quarter. The company raised $6.3 billion in fresh capital, including a $2 billion equity investment from Nvidia and another $4.3 billion through convertible securities issued at favorable rates. In another major expansion move, Nebius announced it had secured land and power infrastructure for a massive new 1.2-gigawatt AI factory site in Pennsylvania, underscoring its aggressive push to scale capacity amid booming AI demand.
The balance sheet remains exceptionally strong, with more than $9 billion in cash following the quarter’s fundraising activities, alongside robust operating cash inflows of $2.3 billion in Q1. Looking ahead, Nebius plans to deploy that capital strategically to expand its AI infrastructure footprint further while also evaluating potential acquisitions that could deepen its technology stack and strengthen its product offerings.
What Do Analysts Think About Nebius Stock?
Wall Street continues to grow increasingly bullish on Nebius Group, with the stock currently holding a consensus “Moderate Buy” rating. Among the 15 analysts covering the stock, nine rate it a “Strong Buy,” while the remaining six maintain “Hold” recommendations. With an average price target of $218.50, Nebius shares have the potential of 2.7% further upside ahead, and with the Street-high target of $287, implied potential gains of roughly 35% from current levels could sit on the horizon.
www.barchart.com 
www.barchart.com On the date of publication, Anushka Mukherji 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.
More news from Barchart
DELL Stock Just Hit a New 52-Week High as Analysts Up Price Targets Nvidia Says Its H100 GPU Prices Are Still Rising. That’s Good News for Nebius Stock. Costco Stock Split Rumors Explode as COST Smashes $1,000 Milestone Again Microsoft Stock Is a Buy as OpenAI Prepares for an IPO. Here’s Why.