Nebius Group rose sharply Thursday after the Nvidia-backed cloud provider posted a huge jump in revenue and upped its growth forecast. The report adds to a recent rally for Nebius stock.
The company recorded $105.1 million in revenue for its June-ended quarter, a 625% year-over-year increase. That came with a net loss of $91.5 million, widening from a $61.6 million loss in the same period a year earlier.
Nebius Group offers a cloud infrastructure and software platform it says is built for handling AI's intense computing needs. The company is looking to carve out some market share from cloud leaders such as Amazon and Microsoft. It also competes with larger so-called neoclouds like the recent IPO stock CoreWeave.
In a news release Thursday morning, Chief Executive Arkady Volozh said Nebius Group expects to reach a $900 million to $1.1 billion annualized revenue run rate this year, up from previous guidance of $750 million to $1 billion.
"Demand for AI infrastructure — compute, software and services — is only going to get stronger as use cases multiply," Volozh said. "We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW (gigawatt) of power by the end of 2026."
Nebius' AI Expansion Plans
Nebius' second-quarter revenue came in ahead of Wall Street consensus for about $101 million in sales. However, the stock currently is covered by just five analysts, according to FactSet.
D.A. Davidson analyst Alexander Platt rates Nebius stock a buy under a "DaVinci" initiative, which the firm says focuses on disruptive potential and other factors over near-term financial and valuation metrics. Following the Q2 report, Platt set a price target of 75 for Nebius, up from 65.
The company's "strong 2Q25 (was) underscored by better-than-expected core Nebius revenue, and accelerating data center expansion plans," Platt wrote.
Separately, Nebius stock was initiated with a buy rating by Goldman Sachs analysts last month, according to a report in The Fly.
Amsterdam-based Nebius rebranded itself from the name Yandex last year after selling off its Russian assets, including the country's leading search engine. Nebius reemerged with an AI cloud focus, and the stock began trading on the Nasdaq again on Oct. 21.
In December, Nebius announced it had raised $700 million through a private placement from a group of investors that included Nvidia. The firm also raised $1 billion in debt in June.
Nebius late last year announced plans to invest $1 billion in developing AI-related infrastructure in Europe. It is also expanding to the U.S., including data centers in Kansas City and New Jersey.
Nebius Stock Jumps After Q2 Report
Along with the AI infrastructure business, Nebius Group includes autonomous-vehicle developer Avride, education technology company TripleTen and data software firm Toloka, which is focused on training AI models. Nebius also has a minority stake in Clickhouse, a data analytics software challenger to Snowflake that recently raised $350 million in venture capital funding.
On the stock market today, Nebius stock rallied more than 18% to 65.45 in recent action. Shares for the cloud company slumped along with the broader market in March and early April before bouncing back. Nebius stock gained about 5% following its Q1 report in May.
Nebius stock has rallied more than 145% year to date, including Thursday's gain. That gives Nebius stock a Relative Strength Rating of 98 out of a best-possible 99, according to IBD Stock Checkup.
However, Nebius stock has an IBD Composite Rating of 76 out of 99. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
The score is weighed down by an EPS Rating of just 9 out of a best-possible 99, IBD Stock Checkup shows.
The stock has been somewhat volatile. Nebius stock's 21-day ATR is on the high side at 6.9%. ATR, or average true range, is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's movement. Stocks that tend to make large jumps or dives in daily action have a high ATR.
