Nebius (NBIS) Stock; Rallies 15% Following Record Revenue Surge and Massive Capex Hike

Nebius Group N.V. delivered one of its strongest quarterly performances to date, triggering a sharp rally in its share price. The stock surged roughly 15% in Wednesday trading after the AI-focused cloud infrastructure company reported a dramatic acceleration in revenue growth and significantly raised its long-term investment outlook.

Investors responded to the combination of explosive top-line expansion and aggressive capacity buildout plans, signaling confidence in the company’s position within the rapidly tightening AI infrastructure market.

Revenue jumps more than sevenfold

The rally came after Nebius revealed that first-quarter revenue climbed to approximately $399 million, a staggering increase from just $50.9 million in the same period a year earlier. This represents a more than sevenfold surge, underscoring the extraordinary demand for high-performance computing resources used in AI training and inference workloads.

Nebius Group N.V., NBIS

The company also reported a 684% year-over-year spike in revenue growth metrics, reinforcing the scale of its expansion. Adjusted EBITDA turned positive at $129.5 million, reversing a loss from the prior year, while net income from continuing operations was boosted by a non-cash revaluation gain tied to its ClickHouse investment. However, adjusted net losses widened, highlighting ongoing costs associated with rapid scaling.

Massive capex signals AI arms race

A key driver behind investor attention was Nebius’ revised capital expenditure outlook. The company raised its 2026 capex forecast to a range of $20 billion to $25 billion, up from a previous estimate of $16 billion to $20 billion.

The move signals an intensifying race among AI infrastructure providers to secure scarce resources such as GPUs, data center capacity, power supply, and advanced networking equipment.

Management emphasized that demand continues to outpace supply across its infrastructure footprint. According to CEO Arkady Volozh, each time new GPU capacity is deployed, multiple customers compete for access almost immediately, an indication of sustained strain in the AI compute market.

GPU scarcity fuels competitive pressure

Nebius operates as a specialized AI cloud provider offering Nvidia-based computing systems designed for large-scale model training and inference. These so-called “neocloud” providers have become critical infrastructure partners for AI developers, especially as demand for GPUs continues to outstrip global supply.

The company is actively securing long-term capacity, including power and land commitments tied to multi-gigawatt data center development. It has locked in up to 1.2 gigawatts for a new AI campus in Pennsylvania and lifted its contracted power pipeline to more than 4 gigawatts. These moves highlight how aggressively Nebius is positioning itself for long-term dominance in AI compute infrastructure.

Expansion push backed by major clients

Nebius’ growth strategy is being reinforced by high-profile partnerships. The company has signed long-term agreements with major technology players, including a multi-year deal with Meta valued at up to $27 billion in computing supply commitments. Nvidia has also taken a strategic stake in the company, investing $2 billion for an 8.3% ownership position.

At the same time, Nebius is expanding its engineering and software capabilities, bringing in talent from Clarifai alongside licensing its inference and compute orchestration technology. The company has also begun construction on its first gigawatt-scale AI factory campus in the United States, signaling a shift toward industrial-scale AI infrastructure development.

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