Strength Seen in Nebius Group (NBIS): Can Its 27.1% Jump Turn into More Strength?

Nebius Group (NBIS) shares rallied 27.1% in the last trading session to close at $188.43. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 35.3% loss over the past four weeks.

The increase in share price can be attributed to investor optimism as the demand for AI infrastructure continues to accelerate. Nebius is one of the pure-play companies in this space and hence a direct beneficiary of this trend. 

Nebius is expanding its AI-native hyperscaler platform through investments in capacity, products, customers and capital. In first-quarter 2026, the company increased its contracted power capacity from more than 2 gigawatts to more than 3.5 gigawatts and now targets at least 4 gigawatts by the end of 2026.

The company is also solidifying its technology platform by expanding beyond compute into cloud services that span the entire AI lifecycle, from bare-metal infrastructure and multi-tenancy to inference and agentic capabilities. The acquisitions of Tavily, Eigen AI and Clarifai are expected to broaden its portfolio and capture larger market share.

It has recently secured its first senior secured debt facility worth approximately $775 million. This debt financing galvanizes its capital position, providing additional funding to accelerate global AI infrastructure expansion, increase compute capacity and support long-term revenue growth while reducing reliance on equity financing.

This an AI-centric cloud platform is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of -76.3%. Revenues are expected to be $535.03 million, up 409.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Nebius Group, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NBIS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Nebius Group belongs to the Zacks Internet - Software and Services industry. Another stock from the same industry, Criteo S.A. (CRTO), closed the last trading session 3% lower at $21.94. Over the past month, CRTO has returned 22.5%.

Criteo's consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $0.72. Compared to the company's year-ago EPS, this represents a change of -21.7%. Criteo currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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