Nebius Group N.V.

NBIS

Market cap $23.1B

CoreWeave reported a widening loss and weak guidance in its Q4 report. There's still a lot of uncertainty in the AI cloud sector.

Nebius is an AI-first cloud computing business. Several of the big tech companies are competing against Nebius.

Nebius Group N.V. (NBIS 1.34%) just posted 479% revenue growth and made a strategic $275M acquisition to expand into agentic AI infrastructure.

NBIS AI cloud revenue surges 830% while GOOGL leverages AI to boost search, YouTube and Google Cloud growth.

Nebius (NBIS) delivered strong operational execution, surpassing December 2025 ARR guidance and raising capacity targets, despite a slight revenue miss in Q4 2025. Management guides for $3.0–$3.4 billion FY 2026 revenue, 40% adjusted EBITDA margin, and $16–$20 billion in CapEx, with 60% funded by internal sources and prepayments. I maintain a bullish stance on NBIS, with a fair value estimate of $128.90 per share, reflecting conservative financing assumptions and updated CapEx forecast.

Nebius: More Than GPUs - A Hidden AI Platform The Market Is Missing

TSMC remains the linchpin of the AI and chipmaking markets. Nebius' cloud-based AI infrastructure services are locking in some big customers.

For the quarter, Alger SICAV - Alger Dynamic Opportunities Fund portfolio's average long exposure was 80.88% and the average short exposure was -32.28%. Long positions MongoDB, Inc., Natera, Inc., and Alphabet Inc. were among the top contributors to performance. Long positions Meta Platforms Inc., Nebius Group, and Roblox Corp. were among the top detractors from performance.

Nebius Group N.V. gets a Strong Buy rating, as rapid capacity buildout and robust contract pipelines overshadow short-term revenue and EPS misses. NBIS exceeded its 2025 active power capacity target, reaching 170 MW, and raised contracted power commitments above 3 GW, fueling market confidence. Over $22 billion in contract backlog, anchored by Meta and Microsoft, supports a $7–9 billion 2026 ARR target, with substantial growth locked in.

Nebius Group is positioned for long-term growth, driven by AI infrastructure demand and a robust business transformation. The company missed Q4 2025 revenue estimates and guided 2026 revenues below the consensus, but this reflects the cadence of the revenue ramp rather than a disappointing outlook. The company is seeing improved pricing power and longer contracts based, even for older GPUs.