AI Cloud Firm Nebius Jumps Again as It Reports near Eightfold Revenue Surge

Nebius shares jumped another 7.4% in morning trading on Thursday.

Nebius Group reported a nearly eightfold rise in quarterly revenue on Wednesday, benefiting from increasing demand for artificial ​intelligence infrastructure and cloud services, sending its shares up 14.7%.

The Amsterdam-based neocloud company is racing to secure capacity and power, boosting its annual capital expenditure forecast to between $20 billion and $25 billion, from a prior projection of $16 ​billion to $20 billion.

With customers including Meta and Microsoft, it has grabbed ​a slice of the lucrative AI and cloud infrastructure market ⁠by providing Nvidia GPUs and computing platforms to developers.

Nebius said demand continues ​to exceed available capacity and it plans to fund its rapid expansion ​through asset-backed financing and corporate debt, while keeping costs tight.

Analysts flagged margin pressure despite strong revenue growth due to the firm's heavy capital expenditure.

"We typically see several customers ​competing for every GPU we bring online," CEO Arkady Volozh said, ​adding that higher spending reflected visibility into 2027 demand, not cost pressures.

Investments in procuring ‌graphics processing ⁠units and data center hardware also drove first-quarter capex to about $2.5 billion, compared with $544 million a year earlier.

Nebius has been expanding its AI infrastructure business through acquisitions and large computing contracts, agreeing to buy startup Eigen AI for about $643 million, ​while also signing ​a long-term deal with ⁠Meta to provide up to $27 billion worth of computing capacity over five years.

The company announced a new site ​in Pennsylvania on Wednesday to support 1.2 GW of ​power once ⁠fully live.

Revenue for the three months ended March jumped to $399 million from $50.9 million a year ago, beating an estimate of $371.4 million, according to data compiled ⁠by ​LSEG.

Nebius now expects to have more than ​4 GW of contracted power by the year-end, up from its prior forecast of more than ​3 GW.