Nebius Group N.V.

(NASDAQ Global Select)
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Bullish +62

Nebius (NBIS) Stock Jumps 9% After Raising AI Compute Prices

AI-generated analysis

πŸ“ˆ NBIS stock jumped ~9% in pre-market trading after the company announced price increases for AI compute services effective October 1.

πŸ’» GPU pricing rose significantly, with Nvidia H100 rates increasing 17% to $4.50 per hour and B300 rates up 21% to $9.50 per hour.

🧠 CPU pricing also increased, with AMD EPYC Genoa rates rising 25% to $0.015 per vCPU-hour.

πŸ’° Q2 2026 revenue reached $582 million, up 454% year-over-year, driven by a 514% surge in AI cloud revenue.

πŸ”‹ The company expects $9 billion in customer prepayments for 2026 and raised its contracted power target to 5 GW.

⚑ Capital expenditure for Q2 was $5.7 billion, surpassing the analyst estimate of $4.7 billion.

πŸ“‰ NBIS remains unprofitable with a trailing twelve-month EPS of -$0.13 and negative free cash flow.

πŸ“Š The stock trades at a high Price-to-Sales ratio of 45.35 compared to a historical median of 6.79.

🏦 Institutional sentiment is positive with seven gurus adding positions, though insiders sold $173 million in the last year.

Bullish Signals
  • Stock surged ~9% in pre-market trading following a strategic price increase for AI compute services effective October 1.
  • Q2 2026 revenue exploded to $582 million, representing a massive 454% year-over-year growth rate.
  • AI cloud revenue specifically grew by 514%, demonstrating strong demand for the company's core infrastructure offerings.
  • The company secured significant future visibility with an expectation of $9 billion in customer prepayments for 2026.
  • Management raised its contracted power target for 2026 to 5 GW, up from a previous target of over 4 GW.
  • Pricing power is evident as the company successfully increased rates across four major Nvidia GPU models and AMD CPUs.
Risk Factors
  • The company remains unprofitable with a trailing twelve-month EPS of -$0.13 and negative free cash flow.
  • Capital expenditure for Q2 reached $5.7 billion, significantly exceeding the analyst estimate of $4.7 billion.
  • Valuation is stretched with a Price-to-Sales ratio of 45.35, far above its historical median of 6.79.
Full Analysis
Nebius Group (NBIS) shares surged approximately 9% in pre-market trading following an announcement that the company raised prices for its AI compute services effective October 1. The pricing adjustments cover both GPU and CPU resources, signaling strong demand and tight supply in the AI infrastructure sector. Specific increases include a 17% hike for Nvidia H100 GPUs and a 25% increase for AMD EPYC Genoa CPUs. Financial performance highlights from Q2 2026 show Nebius reported revenue of $582 million, representing a 454% year-over-year increase, with AI cloud revenue growing by 514%. The company anticipates $9 billion in customer prepayments for 2026 and increased its contracted power target to 5 GW. However, capital expenditure for the quarter reached $5.7 billion, exceeding analyst estimates of $4.7 billion. Despite robust growth metrics, Nebius remains unprofitable with a trailing twelve-month EPS of -$0.13 and negative free cash flow. The stock currently trades at a Price-to-Sales ratio of 45.35, significantly higher than its historical median of 6.79. While institutional interest has grown with seven gurus adding positions, insider activity over the past year shows $173 million in stock sales with no purchases.