Shares of Nebius Group (NBIS +2.13%) were soaring this week after the generative AI-focused cloud infrastructure platform impressed investors with its second-quarter earnings report.
According to data from S&P Global Market Intelligence, the stock was up 28.5% as of 11:48 a.m. ET.
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Nebius is on fire
Nebius, which evolved out of the Russian tech giant Yandex to focus on cloud computing for generative AI, posted another quarter of skyrocketing growth, showing soaring demand for AI infrastructure.
Revenue jumped 625% to $105.1 million, which topped estimates at $101.2 million. Nebius' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss expanded from $21 million to $58.1 million as it invests in the massive opportunity in front of it. However, the company said that its core business achieved positive adjusted EBITDA in the quarter.
CEO Arkady Volozh said: "Demand for AI infrastructure -- compute, software, and services -- is only going to get stronger as use cases multiply. We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW of power by the end of 2026."
NASDAQ: NBIS
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What's next for Nebius
Looking ahead, Nebius raised its annual run-rate revenue guidance to $900 million-$1.1 billion, meaning the company should have annual contracts of around $1 billion by the end of the year, making the stock look more affordable than it might otherwise.
Its growth demonstrates the tremendous opportunity in front of it, and the stock looks like a good bet to move higher as the AI infrastructure buildout continues.
