Nebius Group Posts 0.11 Drop as Trading Volume Plunges 30.12 to 430M Amid 900M 1.1B ARR Upgrade and 2026 Global Expansion Push

Nebius Group (NBIS) closed at $65.40 on Sept. 3, down 0.11%, with a trading volume of $430 million, a 30.12% decline from the previous day. The stock, which saw a 25.5% surge in August, has faced recent volatility amid broader tech market corrections. The company’s second-quarter report highlighted an upward revision of its annualized revenue run rate (ARR) to $900 million–$1.1 billion by year-end, up from earlier guidance, signaling confidence in its AI infrastructure expansion plans. Nebius aims to quadruple global data center capacity by 2026, supported by a $1.68 billion cash balance and recent $1 billion convertible note issuance to fund growth initiatives.

The stock’s post-August pullback aligns with broader tech sector trends, as investors reassess valuations amid high enterprise value of $15.7 billion. While management’s aggressive revenue projections and strategic investments in U.S., Israel, Finland, and the U.K. expansion projects remain bullish catalysts, sustainability of growth will be critical. The company’s shift from Yandex to Nebius in 2024 underscores its focus on rebranding and global AI infrastructure leadership. However, elevated valuations relative to 2025 sales raise concerns about execution risks, particularly in early-stage AI development markets.

Backtest data shows NBIS delivered 137% year-to-date returns as of Sept. 3, outperforming the S&P 500’s 9.63%. Over one year, the stock surged 359%, reflecting strong investor appetite for AI-driven growth. Despite recent declines, the stock’s long-term trajectory hinges on its ability to meet ARR targets and maintain competitive advantages in cloud and AI infrastructure. Analysts note the pullback could offer entry points for investors comfortable with high-growth, high-risk profiles.