Nebius Skyrockets 30% in a Month: Should Investors Buy or Hold Now?

Core Insights - Nebius Group N.V. (NBIS) stock has increased by 29.9% in the past month and 97% over the last six months, outperforming the Zacks Computer & Technology sector and the S&P 500 composite [2][8] - The company is aggressively expanding its infrastructure to meet the high demand for AI capabilities, raising its contracted power target to 2.5 gigawatts by 2026 [5][12] Company Performance - NBIS has outperformed major peers such as Microsoft Corporation (MSFT), which fell by 0.9%, while Amazon.com, Inc. (AMZN) and CoreWeave, Inc. (CRWV) increased by 20.9% and 9%, respectively [3] - The company has secured multibillion-dollar contracts with Microsoft, valued between $17.4 billion and $19.4 billion, and with Meta, up to $3 billion, expected to contribute significantly to revenue starting late in Q4 2025 [6][8] Infrastructure Expansion - Nebius is launching new cloud platforms, including Aether 3.0 and Nebius AI Cloud 3.1, designed to enhance AI capabilities and enterprise security [9][10] - The company is also expanding its global data center footprint, with new facilities planned in the U.K., Israel, and New Jersey, targeting $7–$9 billion in annual recurring revenue (ARR) by 2026 [11][12] Financial Outlook - Nebius has raised its capital expenditure outlook from approximately $2 billion to about $5 billion for 2025, indicating a significant investment in growth [13] - The company is projected to generate between $900 million and $1.1 billion in ARR by the end of 2025 [12] Valuation Metrics - NBIS shares are currently trading at a Price/Book ratio of 5.52X, which is higher than the Internet Software Services industry's average of 3.99X [15]