Shares of Nebius Group N.V. advanced 8.3% to $93.26 during Monday's session, with trading volume exceeding 11 million shares. The Amsterdam-based artificial intelligence cloud computing company is scheduled to release its fourth-quarter and full-year financial results before the market opens on February 12.
Wall Street anticipates the company will report a quarterly loss of 44 cents per share on revenue of $232.2 million. Analyst expectations for profitability have improved modestly over the past month. The stock experienced significant intraday volatility, trading between $80.47 and $93.63.
AI Infrastructure Contracts Drive Sentiment
Investor focus remains squarely on Nebius's execution of substantial, multi-year GPU infrastructure agreements with technology giants Meta and Microsoft. According to reports, Meta's contract is valued at approximately $2.9 billion and involves two separate clusters slated for deployment in late 2025 and early 2026. Microsoft has committed to a $17.4 billion arrangement.
These contracts contain performance clauses; for instance, Meta retains cancellation rights for specific portions if Nebius fails to meet delivery timelines after a grace period, heightening scrutiny on near-term execution.
Growth Trajectory and Capital Intensity
The company reported a 355% year-over-year surge in third-quarter revenue to $146.1 million. Capital expenditures, however, soared to $955.5 million, driven by investments in graphics processing units, land, and power infrastructure. Management has targeted an annualized revenue run-rate between $7 billion and $9 billion by the end of 2026, a significant increase from approximately $551 million as of September 30.
To fund this aggressive expansion, Nebius announced plans last September to raise $3 billion through a combination of a $2 billion private sale of convertible notes and a $1 billion public equity offering.
Co-founder Roman Chernin has described the company as Europe's largest "neocloud" provider, a term for a new breed of cloud service optimized for AI compute, and noted it competes with hyperscale rivals like Amazon and Google. He has emphasized plans to diversify the client base beyond AI startups and into higher-margin services to build resilience.
The broader technology sector also gained ground Monday, with the Nasdaq Composite rising nearly 1%. Stocks linked to AI infrastructure spending, including Nvidia and Microsoft, posted solid gains, contributing to the positive momentum for related names like Nebius.
