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Nebius Gains 42% in 3 Months: Should Investors Buy Now or Wait?
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Key Takeaways
Nebius shares surged on speculation of advanced talks to acquire AI21 Labs.
NBIS AI cloud revenue jumped 830% YoY, driven by strong demand and high utilization.
Nebius secured $2B from NVIDIA and is expanding data centers and AI capacity globally.
Nebius Group N.V. (NBIS - Free Report) stock has gained 42.1% in the past three months, outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry’s decline of 2.5% and 6.7%, respectively. The S&P 500 composite is down 1.8% over the same time frame. The company’s shares have soared 11.7% in a month.
Shares of Nebius have surged 29% in last week. According to the market speculation, the company is in advanced talks to acquire Israeli AI startup AI21 Labs.
Image Source: Zacks Investment Research
NBIS has outpaced its peers, Microsoft Corporation (MSFT - Free Report) and CoreWeave, Inc. (CRWV - Free Report) , with MSFT falling 19.1% and CRWV climbing 13.6% during the same interval.
Following a strong rally, investors may wonder whether NBIS still has upside or if expectations have outpaced fundamentals. Let’s unpack the company’s fundamentals and challenges to ascertain the best course of action.
NBIS’ Key Growth Catalysts
Nebius continues to witness strong demand across hyperscalers, large enterprises and AI-native start-ups, with customers rapidly scaling GPU usage from hundreds and thousands to tens of thousands. Demand remains well ahead of supply, with the company once again selling out capacity in the fourth quarter, while operating leverage and disciplined cost management supported improved profitability. In fourth-quarter 2025, its core AI cloud business delivered exceptional growth, with revenue surging 830% year over year and 63% sequentially, driven by high utilization, favorable pricing and solid execution.
Enterprise adoption of AI is expanding across critical workflows, leading to larger and longer-duration contracts. New customer contract durations increased 50%, while pipeline momentum remains strong with improving deal quality and larger average deal sizes. Pipeline creation is on track to exceed $4 billion in the first quarter of 2026, with further expansion expected as capacity ramps up and sales coverage broadens, alongside continued progress in the company’s vertical strategy.
NBIS secured a $2 billion investment from NVIDIA (NVDA - Free Report) . The partnership strengthens collaboration across the AI technology stack, supporting Nebius’ full-stack AI cloud platform for AI-native companies and enterprises, while helping the company scale toward its goal of deploying more than 5 gigawatts of AI computing capacity by 2030 with access to next-generation GPUs. The partnership also includes deploying multiple generations of NVIDIA hardware across Nebius’s platform, including early adoption of advanced computing architectures such as NVDA’s Rubin platform, Vera CPUs and BlueField storage and networking systems.
In the fourth quarter of 2025, the company accelerated its capacity plans, announcing nine new data centers and securing more than 2 gigawatts of contracted power, with expectations to exceed 3 gigawatts. Nebius remains on track to deliver 800 megawatts to 1 gigawatt of available data center capacity by year-end 2026.
Recently, Nebius announced its infrastructure expansion plans with the building of an AI factory with a capacity of up to 310 MW in Finland. This factory will be set up in the city of Lappeenranta and will become “one of Europe’s largest dedicated AI factories” once fully operational, highlighted Nebius. The company has already achieved 750 MW of contracted power in EMEA. The company is also advancing parallel projects in the region, including a 240-MW AI factory near Lille, France. NBIS plans to build more facilities in Finland as it aggressively expands capacity. Last month, Nebius secured approval to build its first gigawatt-scale AI factory in Kansas City, MO.
Growth is further supported by platform expansion through product innovation and acquisitions, including the launch of Token Factory and Aether, and the acquisition of Tavily, driving strong developer engagement with 100% software attach rates for AI cloud customers. In March 2026, the company announced the launch of Nebius AI Cloud 3.5, the latest upgrade to its Aether platform, introducing a suite of enhancements aimed at simplifying and accelerating AI development and deployment.
The company maintains financial flexibility through multiple funding avenues, including operating cash flows, debt and asset-backed financing, potential equity issuance and stakes in non-core assets. Nebius also confirmed the timely delivery of the first tranche of its Microsoft commitment, with remaining deployments on track through 2026. Nebius expects Microsoft to contribute revenue at its full annual run rate beginning in 2027, following the deployment of all tranches. Nebius continues to target 2026 revenue of $3 billion to $3.4 billion and an annualized run-rate of $7 billion to $9 billion by year-end.
CoreWeave is also scaling investments aggressively and expects revenues of $12–$13 billion for 2026. CRWV anticipates annualized run-rate revenue to exceed $30 billion by the end of 2027.
Image Source: Zacks Investment Research
However, Nebius expects EBIT to remain negative in 2026 as it continues executing its capacity expansion plans, deploying GPUs and investing in research and development to significantly strengthen its technology stack and future AI products.
Moreover, the company operates in a highly dynamic environment driven by macroeconomic uncertainty, rising operating costs and substantial capital requirements. The company plans to invest between $16 billion and $20 billion in capital expenditures in 2026 to scale its AI infrastructure. While this aggressive investment supports long-term growth, it also elevates financial risk if revenue growth does not keep pace with the capital-intensive expansion strategy, particularly amid potential fluctuations in AI demand, pricing pressures and evolving regulatory landscapes. Additionally, the rapid expansion of data centers across multiple regions introduces execution and operational risks.
A Look at NBIS' Valuation
In terms of Price/Book, NBIS’ shares are trading at 7.91X, higher than the Internet Software Services industry’s 3.57X.
Image Source: Zacks Investment Research
Should You Buy or Hold Now?
Despite near-term risks from heavy capital expenditures and execution challenges, Nebius’ robust demand, strategic partnerships and aggressive capacity expansion bode well for its long-term growth trajectory.
Existing investors may consider holding their positions, while prospective investors may wait for a more favorable entry point.
View the Zacks #1 Rank List
Image: Bigstock
Nebius Gains 42% in 3 Months: Should Investors Buy Now or Wait?
Key Takeaways
Nebius Group N.V. (NBIS - Free Report) stock has gained 42.1% in the past three months, outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry’s decline of 2.5% and 6.7%, respectively. The S&P 500 composite is down 1.8% over the same time frame. The company’s shares have soared 11.7% in a month.
Shares of Nebius have surged 29% in last week. According to the market speculation, the company is in advanced talks to acquire Israeli AI startup AI21 Labs.
Image Source: Zacks Investment Research
NBIS has outpaced its peers, Microsoft Corporation (MSFT - Free Report) and CoreWeave, Inc. (CRWV - Free Report) , with MSFT falling 19.1% and CRWV climbing 13.6% during the same interval.
Following a strong rally, investors may wonder whether NBIS still has upside or if expectations have outpaced fundamentals. Let’s unpack the company’s fundamentals and challenges to ascertain the best course of action.
NBIS’ Key Growth Catalysts
Nebius continues to witness strong demand across hyperscalers, large enterprises and AI-native start-ups, with customers rapidly scaling GPU usage from hundreds and thousands to tens of thousands. Demand remains well ahead of supply, with the company once again selling out capacity in the fourth quarter, while operating leverage and disciplined cost management supported improved profitability. In fourth-quarter 2025, its core AI cloud business delivered exceptional growth, with revenue surging 830% year over year and 63% sequentially, driven by high utilization, favorable pricing and solid execution.
Enterprise adoption of AI is expanding across critical workflows, leading to larger and longer-duration contracts. New customer contract durations increased 50%, while pipeline momentum remains strong with improving deal quality and larger average deal sizes. Pipeline creation is on track to exceed $4 billion in the first quarter of 2026, with further expansion expected as capacity ramps up and sales coverage broadens, alongside continued progress in the company’s vertical strategy.
NBIS secured a $2 billion investment from NVIDIA (NVDA - Free Report) . The partnership strengthens collaboration across the AI technology stack, supporting Nebius’ full-stack AI cloud platform for AI-native companies and enterprises, while helping the company scale toward its goal of deploying more than 5 gigawatts of AI computing capacity by 2030 with access to next-generation GPUs. The partnership also includes deploying multiple generations of NVIDIA hardware across Nebius’s platform, including early adoption of advanced computing architectures such as NVDA’s Rubin platform, Vera CPUs and BlueField storage and networking systems.
Nebius Group N.V. Price and Consensus
Nebius Group N.V. price-consensus-chart | Nebius Group N.V. Quote
In the fourth quarter of 2025, the company accelerated its capacity plans, announcing nine new data centers and securing more than 2 gigawatts of contracted power, with expectations to exceed 3 gigawatts. Nebius remains on track to deliver 800 megawatts to 1 gigawatt of available data center capacity by year-end 2026.
Recently, Nebius announced its infrastructure expansion plans with the building of an AI factory with a capacity of up to 310 MW in Finland. This factory will be set up in the city of Lappeenranta and will become “one of Europe’s largest dedicated AI factories” once fully operational, highlighted Nebius. The company has already achieved 750 MW of contracted power in EMEA. The company is also advancing parallel projects in the region, including a 240-MW AI factory near Lille, France. NBIS plans to build more facilities in Finland as it aggressively expands capacity. Last month, Nebius secured approval to build its first gigawatt-scale AI factory in Kansas City, MO.
Growth is further supported by platform expansion through product innovation and acquisitions, including the launch of Token Factory and Aether, and the acquisition of Tavily, driving strong developer engagement with 100% software attach rates for AI cloud customers. In March 2026, the company announced the launch of Nebius AI Cloud 3.5, the latest upgrade to its Aether platform, introducing a suite of enhancements aimed at simplifying and accelerating AI development and deployment.
The company maintains financial flexibility through multiple funding avenues, including operating cash flows, debt and asset-backed financing, potential equity issuance and stakes in non-core assets. Nebius also confirmed the timely delivery of the first tranche of its Microsoft commitment, with remaining deployments on track through 2026. Nebius expects Microsoft to contribute revenue at its full annual run rate beginning in 2027, following the deployment of all tranches. Nebius continues to target 2026 revenue of $3 billion to $3.4 billion and an annualized run-rate of $7 billion to $9 billion by year-end.
CoreWeave is also scaling investments aggressively and expects revenues of $12–$13 billion for 2026. CRWV anticipates annualized run-rate revenue to exceed $30 billion by the end of 2027.
Image Source: Zacks Investment Research
However, Nebius expects EBIT to remain negative in 2026 as it continues executing its capacity expansion plans, deploying GPUs and investing in research and development to significantly strengthen its technology stack and future AI products.
Moreover, the company operates in a highly dynamic environment driven by macroeconomic uncertainty, rising operating costs and substantial capital requirements. The company plans to invest between $16 billion and $20 billion in capital expenditures in 2026 to scale its AI infrastructure. While this aggressive investment supports long-term growth, it also elevates financial risk if revenue growth does not keep pace with the capital-intensive expansion strategy, particularly amid potential fluctuations in AI demand, pricing pressures and evolving regulatory landscapes. Additionally, the rapid expansion of data centers across multiple regions introduces execution and operational risks.
A Look at NBIS' Valuation
In terms of Price/Book, NBIS’ shares are trading at 7.91X, higher than the Internet Software Services industry’s 3.57X.
Image Source: Zacks Investment Research
Should You Buy or Hold Now?
Despite near-term risks from heavy capital expenditures and execution challenges, Nebius’ robust demand, strategic partnerships and aggressive capacity expansion bode well for its long-term growth trajectory.
Existing investors may consider holding their positions, while prospective investors may wait for a more favorable entry point.
At present, NBIS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.