Nebius Group N.V. (NASDAQ: NBIS) has delivered a staggering 123.6% gain over the past three months, vastly outpacing the broader market and its technology peers.
The S&P 500 composite returned just 11% over the same period, while the Zacks Computer and Technology sector and the Zacks Internet Software Services industry gained 20.3% and 23.2%, respectively.
NBIS has also outperformed fellow AI infrastructure players, with Microsoft Corporation (NASDAQ: MSFT) up only 0.3% and CoreWeave, Inc. (NASDAQ: CRWV) climbing 29.9% over the same three-month window.
The company’s shares have extended their rally with a 30.1% gain in the past month alone, raising the question of whether the stock still has meaningful upside ahead.
Nebius has been aggressively expanding its AI-native hyperscaler platform, growing its contracted power capacity from more than 2 gigawatts to more than 3.5 gigawatts within just three months.
The company now targets at least 4 gigawatts of contracted power capacity by year-end, and announced a new Pennsylvania site that will support 1.2 gigawatts of power once fully operational.
Beyond raw infrastructure, Nebius has been deepening its technology stack through the acquisitions of Tavily, Eigen AI, and Clarifai, adding engineering talent and enhancing inference optimization and agentic search capabilities.
The company also expanded its partnership with NVIDIA Corporation (NASDAQ: NVDA) and achieved NVIDIA Exemplar Cloud status for GB300 training workloads, placing it among a select group of providers recognized across multiple GPU generations.
Customer demand has remained strong, with the company noting that several customers typically compete for every GPU it brings online, and pipeline generation in the first quarter increased 3.5 times sequentially.
Clients spanning fintech, physical AI, life sciences, manufacturing, energy, and pharmaceuticals are increasingly adopting the platform, reflecting the breadth of Nebius’s addressable market.
First-quarter financial results underscored the pace of growth, with group revenue surging 684% year over year to $399 million, while the Nebius AI business alone delivered 841% revenue growth.
The Nebius AI segment reached an annualized run-rate revenue of $1.9 billion, and the company raised $4.3 billion through a convertible note offering while securing a $2 billion equity investment from NVIDIA.
Cash and cash equivalents climbed to $9.3 billion following those transactions, giving the company significant firepower to fund its ambitious expansion plans.
For full-year 2026, Nebius is targeting annualized run-rate revenue of $7 billion to $9 billion, group revenue of $3 billion to $3.4 billion, and a group adjusted EBITDA margin of around 40%.
However, management has warned that quarterly adjusted EBITDA margins will fluctuate during 2026, with margins expected to dip in the second quarter before recovering to first-quarter levels in the third quarter and improving further in the fourth.
Capital expenditure guidance has also been raised substantially, to between $20 billion and $25 billion for 2026, up from a prior range of $16 billion to $20 billion, with incremental financing to be sourced through asset-backed structures or corporate debt.
On valuation, NBIS shares trade at a price-to-book multiple of 9.09X, above the Internet Software Services industry average of 4.13X, though below CRWV at 9.93X and well below NVDA at 26.3X.
MSFT trades at a price-to-book multiple of 7.17X, making Nebius’s valuation elevated relative to the industry but not extreme compared to its closest peers.
The stock currently carries a Zacks Rank of 3, or Hold, reflecting strong long-term growth drivers balanced against near-term margin pressure and rising capital expenditure commitments.
Existing investors appear well-served holding their positions, while new investors may find it prudent to wait for a more attractive entry point before initiating exposure.
