Nebius Group Stock Outlook for Three Years
Shares of Nebius Group (NBIS) surged after being named Palantir Technologies' preferred partner for sovereign AI, extending a one-week gain to about 15%. Despite this rise, the stock remains below its 52-week high. The company has secured over $40 billion in multiyear contracts, including significant deals with Meta and Microsoft. In Q2 alone, Nebius reported a 454% year-over-year revenue increase to $582.3 million and achieved non-GAAP EBITDA of $236.2 million at a margin of 41%. Management anticipates an annualized run rate between $7 billion and $9 billion by the end of 2026. Nebius is investing heavily in infrastructure, with capital expenditures reaching $8.1 billion in H1 2026 alone. The company has raised additional funds through convertible notes and share swaps, leading to shareholder dilution. Analysts project that Nebius could reach a run rate of between $20 billion and $70 billion by the end of 2029, with stock valuations potentially ranging from around $125 per share in a pessimistic scenario to as high as $835 under optimistic conditions.
Topics: AI cloud computing contract growth EBITDA improvement revenue increase