Nebius Group N.V.(US:NBIS) Yahoo Finance·2026-01-21 18:01Company Overview - Nebius Group (NASDAQ:NBIS) is forecasting up to 1,600% revenue growth by the end of 2026, driven by surging demand for AI compute infrastructure [2] - The company projects an annualized run rate in revenue of $900 million to $1.1 billion for the end of 2025 and $7 billion to $9 billion by the end of 2026 [2] Major Contracts - Nebius has secured a multi-year deal with Microsoft (NASDAQ:MSFT) valued at over $19 billion and a $3 billion partnership with Meta Platforms (NASDAQ:META) over five years [3][7] - The company is expanding capacity from 220 megawatts (MW) to 800 MW and up to 1 gigawatt (GW) of connected power by the end of 2026, with contracted power reaching 2.5 GW [3] Market Dynamics - The supply of the latest generation of AI chips remains sold out into 2026, creating challenges for companies to acquire new inventory promptly [5] - High-bandwidth memory, essential for AI chips, is constrained, with data centers projected to consume 70% of global production in 2026 [5] Pricing Trends - Companies are renting older-generation chips to bridge the gap, with increased utilization of two-generation-old GPUs [6] - Providers like Amazon's AWS have raised GPU instance prices by 15% in early 2026, reflecting the tight market [6] Revenue Impact - Rising GPU spot prices directly boost Nebius rental revenue and margins, with capacity sold out through 2026 [7]