From Computex to $287: Nebius Hits Record High on Twin Catalysts of Nvidia Praise and Analyst Upgrade
02.06.2026 - 14:12:39 | boerse-global.de
Jensen Huang, chief executive of Nvidia, took the stage at the Computex conference and anointed Nebius Group a "world-class AI cloud." The market needed no further encouragement. Shares of the AI infrastructure specialist soared 14.5 percent on Monday to close at $264.51, piercing the prior all-time high with an intraday peak of $274.80.
The rally, however, was not solely a product of Huang's endorsement. Citigroup simultaneously raised its price target on the stock to $287 — the highest on the Street — from $169, reaffirming a "Buy" rating. The upgrade was anchored in the company's explosive first-quarter results, which showed revenue rocketing 684 percent year-over-year to $399 million.
Profitability gains and a $46.4 billion backlog
Beneath the headline growth, Nebius displayed marked improvement in profitability. Adjusted EBITDA reached $129.5 million, translating to a margin of 45 percent. Net income came in at $621.2 million. The AI cloud segment alone generated $389.7 million, or 98 percent of total revenue. Earnings per share of -$0.23 also handily beat analyst expectations of -$0.77.
That revenue stream is underpinned by a hefty order book. Nebius holds long-term contracts worth roughly $46.4 billion, with Meta accounting for a five-year agreement valued at up to $27 billion and Microsoft contributing a contract worth $17.4 billion that runs through 2030. The backlog gives investors visibility into future cash flows that few peers can match.
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Building hyperscale infrastructure at breakneck speed
Nvidia itself placed a $2 billion strategic investment in Nebius in March 2026, and the company is among the first to deploy Nvidia's forthcoming Vera Rubin platform. The capital spending plan for 2026 has been raised to between $20 billion and $25 billion, with funds allocated to H100 GPUs and B300-generation cluster systems developed in partnership with TD SYNNEX.
The physical infrastructure expansion is equally ambitious. Nebius aims to reach 5 gigawatts of data center capacity by 2030. In Finland, a 310-megawatt facility is under construction at Lappeenranta, slated for completion in 2027, while a 75-megawatt data center in Mäntsälä is also in the pipeline. Management has guided for an annualized revenue run rate of $7 billion to $9 billion by the end of 2026.
A $2.6 billion bet from a former OpenAI researcher
Institutional interest in Nebius has broadened as the growth story gains traction. The Situational Awareness Fund, run by former OpenAI researcher Leopold Aschenbrenner, now holds a 5.6 percent stake — 12.41 million Class A shares valued at roughly $2.6 billion. That position adds a layer of credibility among tech-focused hedge funds.
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Yet not all analysts share the same conviction. DA Davidson downgraded Nebius from "Buy" to "Neutral" with a $250 price target, arguing the recent rally may have overshot. The consensus on Wall Street remains "Moderate Buy," with top-end targets reaching as high as $380.
What’s next for Nebius
Investors are turning their attention to Wednesday, June 3, when Chief Financial Officer Roman Chernin is scheduled to present at the Bank of America Technology Conference. The next quarterly earnings report is due August 6. With a market capitalization near $67 billion and a short interest above 21 percent, the stock remains a high-velocity battleground for bulls and bears alike.
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