Nebius Group shares extend gain to 64%

Nebius Group shares extend gain to 64%

Nebius Group N.V. (NBIS) shares have extended their gain to 64% as of September 2, 2025, following a robust second-quarter performance. The company's AI infrastructure business reported a remarkable 625% year-over-year revenue surge to $105.1 million, driven by aggressive capital expenditure and strategic investments in energy-efficient data centers [1].

Nebius Group's share price stands at $68.32, with a trailing P/E ratio of 75.96 and a forward P/E ratio of 68.49. The company's management has expressed confidence in its growth trajectory, raising annual recurring revenue (ARR) guidance to $900 million to $1.1 billion by year-end. Nebius plans to expand its capacity to 220 MW this year and over 1 GW by 2026, positioning it to capture a significant portion of the growing AI infrastructure market [2].

Despite the strong performance, Nebius Group faces challenges such as high cash burn and competitive threats. However, these risks are offset by the company's leveraged exposure to the AI infrastructure cycle, offering investors substantial optionality. Several analysts have recently upgraded their ratings for Nebius Group, with Northland Capital Markets giving it a "strong-buy" rating with a target price of $47.00, and Arete setting a target price of $84.00 [3].

While the stock has traded down 5.2% in recent sessions, reflecting market volatility and uncertainty, the overall sentiment remains positive. Nebius Group's strategic capital allocation, emphasis on efficiency, and financial discipline position it to capture operating leverage as the sector scales. For those willing to ride the long-term AI wave, Nebius offers a compelling thesis.

References:
[1] https://www.ainvest.com/news/bullish-thesis-nebius-group-nbis-highlights-risk-substantial-upside-potential-2509/
[2] https://www.ainvest.com/news/nebius-group-nbis-high-conviction-play-ai-infrastructure-scalability-operating-leverage-2509/
[3] https://www.marketbeat.com/instant-alerts/filing-corsair-capital-management-lp-acquires-new-holdings-in-nebius-group-nv-nbis-2025-08-29/