Nebius Group N.V. (NASDAQ: NBIS) has delivered a staggering 253.5% gain over the past twelve months, dramatically outpacing broader market benchmarks and sector peers.
The rally dwarfs the Zacks Computer and Technology sector’s 28.7% gain and the Zacks Internet Software Services industry’s 11.4% rise over the same period.
The S&P 500 composite returned just 21.6% during that timeframe, underscoring how sharply Nebius has outperformed the wider market.
NBIS has also outpaced rivals NVIDIA Corporation (NASDAQ: NVDA), Microsoft Corporation (NASDAQ: MSFT), and CoreWeave, Inc. (NASDAQ: CRWV) over the past three months, with NVDA up 10.4%, MSFT gaining 21.5%, and CRWV falling 12.7%.
The company’s shares have climbed 23% in just the past month, raising questions about whether further upside remains or whether current prices already reflect its growth story.
Nebius continues to see enormous demand for its AI infrastructure, supported by strong customer interest across AI-native companies, neoclouds, and sophisticated enterprises.
During the second quarter of 2026, the company closed four landmark core AI cloud deals, each valued at more than $1 billion, driven by Nebius’ scale, performance, and reliability.
Group revenues surged 454% year over year to $582 million in the second quarter, with annualized run-rate revenues reaching $3 billion as capacity additions, higher utilization, and infrastructure efficiency all contributed.
Adjusted EBITDA rose to $236 million, while the adjusted EBITDA margin expanded to 41% from 32% in the previous quarter, pointing to improving operational leverage alongside rapid top-line growth.
Nebius has raised its year-end contracted power target to 5 gigawatts and launched a capacity auction that cleared at a price 15% above its previous highest price, highlighting strong demand for its Blackwell capacity.
The company’s asset-light partnership model provides a further avenue to scale, allowing partners to finance, build, and operate facilities while Nebius supplies its full-stack platform and customer demand.
For 2026, Nebius reaffirmed annualized run-rate revenue guidance of $7 billion to $9 billion, group revenues of $3 billion to $3.4 billion, and a group adjusted EBITDA margin of approximately 40%.
Capital expenditures totaled approximately $5.7 billion in the second quarter, primarily reflecting GPU and related hardware purchases, with full-year capital expenditure guidance set at $20 billion to $25 billion.
Management noted on its last earnings call that converting connected power into revenue can take several months, covering steps such as commissioning data centers, building networks and clusters, deploying the platform, and onboarding customers.
The Vineland site also remains subject to an approval process, though management expects no significant impact on the project timeline, offering some reassurance to investors monitoring capacity rollout risks.
On valuation, NBIS shares trade at a price-to-book multiple of 5.54X, above the industry average of 3.79X, though still below CRWV at 7.96X, MSFT at 8.39X, and NVDA at 24.25X.
Existing investors are advised to hold the stock given its strong growth outlook and expanding AI infrastructure opportunity, while new investors may benefit from waiting for a more attractive entry point.
NBIS currently carries a Zacks Rank of 3, reflecting a Hold rating as analysts balance the company’s compelling long-term growth drivers against near-term capital intensity and valuation considerations.
