AI stock is advancing aggressively
Nebius, a Dutch hyperscaler spun off from the Russian Yandex conglomerate, reported impressive quarterly results on Thursday. The company's stock has been on a rollercoaster ride since financial publications like DER AKTIONÄR and the maydornreport made recommendations in mid-May and early April, respectively.
Since DER AKTIONÄR's recommendation, Nebius' stock has gained 82 percent in value. Following the maydornreport recommendation, the stock price has climbed by a substantial 190 percent. Yesterday, Nebius' stock price surged, sending a strong signal to the market.
The strong performance is reflected in Nebius' financial results. The company more than doubled its revenue compared to the previous quarter, reporting approximately $105.1 million for Q2 2025. Nebius' core business achieved a positive Adjusted EBITDA ahead of schedule, according to Founder and CEO, Arkady Volozh.
Volozh also raised the forecast for the annualized run-rate revenue (ARR) for the year to $900 million to $1.1 billion. This significant growth is indicative of the company's aggressive scaling strategy, which includes plans to secure over 1 GW of power capacity for AI infrastructure by the end of 2026.
However, the business remains cash-flow negative on the group level, reflecting an investment and scaling phase. Despite the increased net loss of $91.5 million for the quarter, up $30 million from the previous year, investors remain optimistic about Nebius' AI infrastructure positioning.
Operational growth is impressive, with reports of an eightfold increase in revenue in Q2 and substantial ARR growth. Major customers like Shopify and Cloudflare validate the platform, and there is potential upside from hyperscaler deals.
Monetization lags deployment somewhat, with Return on Investment (ROI) expected 2–3 years per GPU generation, and software increasingly supporting margins. Nebius has strategically maintained valuable minority stakes in firms like ClickHouse and Toloka, functioning as financial reserves for future needs.
In summary, while Nebius is in an intensive growth and capital investment stage, the strong Q2 performance, raised ARR targets, and robust financial reserves underpin a positive medium-term market outlook. Investors remain optimistic about the company’s AI infrastructure positioning, though the transition to consistent positive cash flow will require continued execution and scaling through 2025 and beyond.
Technology plays a vital role in Nebius' growth strategy, with plans to secure over 1 GW of power capacity for AI infrastructure by the end of 2026. The company's strong performance and raised ARR targets indicate a promising future for Nebius' AI infrastructure positioning in the technology sector.
