Nebius Group NV (NASDAQ:NBIS) saw its share price jump by 34.14 percent on Wednesday to finish at $259.20 apiece, after reporting a more-than-fivefold growth in revenues, which signaled that the surging demand for AI cloud infrastructure is translating into rapid revenue growth and larger customer commitments.
The company said in an earnings call on the same day that it raked in $582.3 million in revenues for the second quarter of the year, marking a 454 percent jump from the $105.1 million in the same period last year, and beating the $572.75 million expectations from analysts.
It was by far the strongest quarter, with deals yielding an average of more than $20 million per megawatt.
For illustration purposes only. Photo by Brett Sayles on Pexels
The rally signaled high optimism for the company’s growth prospects, with the rally shunning the firm’s swing to a net loss of $190.4 million from a $584.4 million net income year-on-year, dragged by higher interest expense and operating loss.
“Demand for AI capacity continues to grow exponentially, and we are converting that demand into contracted, profitable growth,” Nebius Group NV (NASDAQ:NBIS) CEO Arkady Volozh told shareholders.
“We closed our largest AI Cloud deals on our strongest terms to date, at prices that represent a step-change in the economics of our business,” he added.
Further Expansion
The company has hinted at expanding further next year to capture a significant share in the surging demand for AI infrastructure.
According to Volozh, the company is raising its year-end contracted power target to 5 GW, and is planning to deploy more than 1 GW per year of capacity beginning next year.
Nebius Group NV (NASDAQ:NBIS) successfully closed four major AI cloud contracts in the second quarter of the year. From $20 million per megawatt at present, newer opportunities are targeted to boost pricing to a range of $40 million to $50 million per megawatt.
“We could sell our entire 2027 capacity on these terms today. We are deliberately not doing so because we see higher value in retaining some capacity for immediate customer needs,” Volozh said.
Hedge Funds Bullish
Prior to the strong second-quarter earnings, institutional investors have already been bullish on Nebius Group NV (NASDAQ:NBIS).
Data from Insider Monkey showed that in the first quarter of the year, the number of hedge funds owning its shares increased to 60 from 54 in the fourth quarter of 2025.
More importantly, their combined holdings soared by 123 percent to $2.36 billion from only $1.06 billion quarter-on-quarter, signaling that while more hedge funds are establishing exposure, they are committing a significant amount to the company over its rosy growth prospects.
Looking ahead, investors will likely be watching a fresh wave of regulatory filings for additional clues about institutional sentiment about the firm.
Form 13F filings are due on Friday, August 14, according to the SEC, and are expected to give investors an updated view of whether hedge funds increased or reduced positions in the second quarter.
The first quarter of the year has already signaled a sharp increase in institutional investors. Assuming the second-quarter hedge fund data reveal more hedge fund positioning, it would provide another indication that Nebius Group NV’s (NASDAQ:NBIS) rally is more than just a short-term growth story.
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