Nebius Jumps Up to 34% on Explosive AI Cloud Growth and Major Contract Wins

Nebius Group (NBIS) shares jumped as much as 34% in recent trading after the AI cloud company reported explosive second-quarter revenue growth and disclosed a series of major contract wins that underscore the scarcity of AI compute capacity.

The company posted revenue of $582 million for the quarter, up 454% year over year and ahead of expectations. AI cloud services accounted for roughly 98% of sales, a sign that Nebius has successfully pivoted from its legacy internet business to become a pure-play provider of AI infrastructure.

Investors focused on the scale of new contracts. Nebius said it has signed multiple deals with an average value exceeding $1 billion, and it raised its contracted power target to 5 gigawatts for 2026. The company also reported strong adjusted EBITDA and said its capacity is sold out, a claim that supports pricing power in a market where hyperscalers and startups alike are scrambling for compute.

Contract economics and capacity roadmap

The contract wins are not just about revenue; they signal a shift in how AI companies procure infrastructure. Rather than renting GPUs on an hourly basis, customers are committing to multi-year, billion-dollar agreements, which gives Nebius better visibility and reduces churn. The raised power target of 5 GW for 2026 is a direct response to demand, but it also raises execution risk. Building data centers and securing power at that scale is capital-intensive and subject to supply chain delays.

Nebius's approach differs from that of hyperscalers like Microsoft and Amazon, which build their own AI clouds. Instead, Nebius targets enterprises and AI labs that need dedicated capacity without the overhead of building their own infrastructure. This niche has attracted competitors, most notably CoreWeave, which has also signed large contracts and expanded rapidly.

Competition and market context

CoreWeave, a private company, has been the poster child for the AI cloud boom, but Nebius is now emerging as a public-market alternative. Both companies rely on NVIDIA GPUs and compete for the same customers, but Nebius's European roots and its focus on sovereign AI may give it an edge in certain regions. However, the market is becoming crowded, with new entrants like Crusoe Energy and smaller players also vying for contracts.

The stock's reaction, a jump of 20% to 34%, reflects the market's hunger for AI infrastructure plays with proven revenue growth. But it also raises the bar for future quarters. Nebius will need to continue signing large contracts and executing on its capacity expansion to justify the valuation.

What to watch

Investors should monitor Nebius's ability to deliver on its 5 GW target and whether it can maintain its pricing power as competition intensifies. The company's next earnings report will be a key test, as will any announcements about new data center locations or additional power agreements.

For now, the market is rewarding Nebius for its explosive growth and the scarcity of AI compute. But the long-term story will depend on whether the company can turn these contract wins into sustained profitability and fend off rivals like CoreWeave.