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Nebius Group (NBIS) reported strong growth in its core AI cloud business, with Q4 revenue reaching $227.7 million—a 547% year-over-year increase and a 56% sequential rise—though it fell short of the $246.04 million consensus estimate. Adjusted EPS came in at -$0.68, beating analyst expectations of -$1.14, and the company achieved its first quarter of positive adjusted EBITDA at $15 million, with its AI cloud segment contributing $51.8 million at a 24% margin. The AI cloud segment accounted for 94% of total revenue, growing over 800% year-over-year. Nebius exceeded its 2023 target of 100 megawatts of active power, ending the year with 170 megawatts, and has secured over 2 gigawatts of contracted power, aiming to surpass 3 gigawatts by 2026. Key partnerships include a $27 billion AI infrastructure deal with Meta, a $17.4 billion agreement with Microsoft (expandable to $19.4 billion), and a $2 billion equity investment from Nvidia, bringing total contracted deal value to $46 billion versus Nebius’s equity value of $28 billion. To support its ambitious growth plans, Nebius raised $3.96 billion through a convertible senior notes offering, with funds allocated to data center expansion, AI cloud investments, and GPU procurement. The company plans to quadruple its capacity by 2026, leveraging pre-energized sites for faster deployment. Management projects an annualized run-rate revenue of $7 billion to $9 billion by 2026, but execution risks tied to capacity-heavy contracts and significant capital expenditure requirements remain challenges. While the stock has gained 125.47% over the past year, short-term technical indicators show it trading below its 20-day and 100-day moving averages. Nebius’s ability to meet revenue expectations and execute large-scale contracts will be critical to maintaining its growth trajectory in the competitive AI Infrastructure-as-a-Service market.
Source content provided by Benzinga.
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What's Going On With Shares Of Nebius?

Shares of Nebius Group N.V. (NASDAQ: NBIS) are jumping Friday on the momentum of reports of a potential acquisition by the AI cloud company.

About NBIS

Nebius is a vertically integrated cloud provider focusing on AI and high-performance computing. It is a carve-out of the previous Russian tech firm Yandex, following the Russian sanctions since the Ukraine-Russia war. Nebius designs and operates its ... Read more

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