Key Takeaways NBIS surged 57% in a month, driven by AI demand and stronger global infrastructure plans. Q1 revenues grew 385% year over year; April ARR hit $310M with 2025 guidance set at $750M-$1B. Nebius deepened ties with NVIDIA and expanded globally, but still projects negative adjusted EBITDA for 2025.Nebius Group N.V. (NBIS) shares have gained 57.3% over the past month, outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry’s growth of 10.1% and 10.6%, ...

Company Overview - Nebius Group is a spinoff from the Russian internet conglomerate Yandex and is now listed on the Nasdaq after raising $700 million through a private placement involving Nvidia [3] - The company focuses on outfitting data centers with advanced GPU architecture and operates an AI services business called Toloka, which has received funding from Bezos Expeditions [4] Financial Performance - In Q4 2024, Nebius generated $37.9 million in revenue, marking a 466% year-over-year increase, with AI infrastructure contributing over half of this revenue and growing by more than 600% annually [6] - The annual recurring revenue (ARR) reached $90 million in December, with expectations to exceed $220 million by the end of Q1 and forecasted to be between $750 million to $1 billion by year-end [8] Market Position and Growth Potential - Nebius is involved in the rollout of Nvidia's latest GPU architecture, Blackwell, across Europe and the U.S., positioning itself well in the growing AI infrastructure market [8] - Major cloud hyperscalers, including Microsoft, Alphabet, Amazon, and Meta Platforms, are projected to spend over $300 billion on capital expenditures in the current year, providing a favorable macro environment for Nebius [9] Stock Performance and Investment Outlook - Nebius stock is currently trading below previous highs but has shown recent momentum due to positive market trends, particularly related to new tariff agreements between the U.S. and China [10] - The upcoming Q1 earnings call is critical for assessing whether Nebius meets its ARR goal of $220 million and for understanding management's forecasts for the remainder of the year [11]

Nebius Group N.V. (NBIS) will report its first-quarter 2025 results on May 20, before market open.The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter is pegged at a loss of 45 cents. The estimate has remained unchanged in the past seven days but has been revised downward by 4 cents in the past 60 days. The consensus estimate for total revenues is pinned at $63.8 million.Image Source: Zacks Investment ResearchBased in Amsterdam, Nebius is positioning itself as a specialized AI infr ...