Why Nebius Group Stock Soared Today

Howard Smith, The Motley Fool

Thu, May 1, 2025, 10:33 AM 3 min read

Key Points

Capital spending plans from major tech players on artificial intelligence (AI) infrastructure is good news for Nebius.
The company is confident it will experience a huge jump in revenue this year.
Its next update on May 20 will be critical for investors.

Shares of Nebius Group (NASDAQ: NBIS) are flying today. After surging more than 13%, the artificial intelligence (AI) cloud infrastructure company was holding on to a gain of 8.3% as of 11:38 a.m. ET.

News from the company, combined with some strong sector tailwinds, provided the boost. Word from several big tech companies that capital investments for AI infrastructure are continuing is big news for Nebius.

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Nebius counts on AI spending

Nebius was created from the restructuring that came after Russian search engine company Yandex was forced to break up. All Russian assets were sold to a Russian group, and Netherlands-based Nebius was formed to focus on its core AI infrastructure business.

Word from big tech companies Microsoft and Meta Platforms last night that they were sticking with capital spending plans for AI infrastructure is giving Nebius shares the biggest boost this morning. Microsoft CFO Amy Hood said in its earnings call that the company is maintaining its $80 billion spending target through this fiscal year ending in June, and that capital expenditures will grow in fiscal 2026. Meta increased its 2025 spending plans to a range of $64 billion to $72 billion. It previously provided a range with a midpoint of $62.5 billion.

Exponential growth ahead

Nebius only reported revenue of $117.5 million in 2024. But in its last earnings report, CEO Arkady Volozh said the company expects to be generating sales at an annual rate of $750 million to $1 billion by December 2025. That's from the "anticipated impact of additional data center capacity and Blackwell GPUs coming onstream later this year."

‍Capital spending news from the tech giants last night should help keep Nebius on track for that lofty goal. It continues to work to improve its cloud offerings, too. An announcement yesterday said Nebius will be partnering with an advanced data intelligence platform to improve performance and efficiency, and provide scalability with its cloud solutions for enterprise customers.

Look to its upcoming May 20 earnings release for any further updates from Nebius.