Nebius Group (NASDAQ: NBIS) stock has surged about 298% over the past year.
The rally was supported by rapid revenue growth, major agreements with technology giants such as Meta Platforms and Microsoft, and a $2 billion investment from Nvidia
The share price gain appears impressive, considering that the stock has already fallen about 26% from its record closing price in June. However, the pullback also suggests that investors are no longer rewarding the company for announcements alone. Nebius must demonstrate that its contracts, data centers, and heavy spending can generate sufficient revenue to support its valuation.
Strong demand still requires execution Nebius provides cloud computing infrastructure and software that companies use to train and run artificial intelligence (AI) models. In the first quarter, the company’s revenue surged 684% year over year to $399 million, while its core AI-cloud revenue jumped 841% to $390 million. Management expects revenue in the range of $3 billion to $3.4 billion in 2026.