Nebius Group (NASDAQ: NBIS) had high aspirations for its revenue cadence by the end of 2025. The artificial intelligence (AI) cloud infrastructure company just beat those expectations. That has shares rising today.
After jumping as much as 12%, Nebius shares have settled in with an 8.2% gain as of noon ET.
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Nebius management made some bold predictions last year. Even as the company reported sales of just $105 million in the second quarter, it projected an annual revenue run rate of up to $1.1 billion by the close of 2025. Nebius just reported that it exceeded that guidance.
At the end of the year, the company achieved an annual revenue run rate of $1.25 billion. Even more impressive is its guidance for 2026. The company expects to increase that rate sevenfold this year.
One way the company plans to do this is by increasing data center capacity beyond prior guidance. Demand for its AI compute capacity is so strong that the company now plans to have more than 3 gigawatts (GW) of contracted compute capacity by the end of 2026.
Nebius stock has already anticipated some of this success, though. Shares more than tripled last year, and even after a pullback, the company has a market cap of about $25 billion. Cloud infrastructure is in high demand, but Nebius’ share price already reflects some of that. As the year progresses, investors should monitor for signs of whether demand will continue into 2027. That will likely determine if Nebius shares have more room to run.
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