Exploring the Surge: Is This Nvidia-Backed AI Stock Worth Investing in After a 400% Increase in One Year?

Key Points

• Nebius Group’s first-quarter revenue surged 684% year over year to $399 million.

• The company has increased its 2026 capital spending plans to $20 billion–$25 billion, up from $16 billion–$20 billion.

• Nebius’s shares have risen over 400% in the past year, trading near all-time highs.

Nebius Group (NASDAQ: NBIS), an Amsterdam-based AI cloud company, reported a remarkable 684% rise in its first-quarter revenue to $399 million. The company’s core AI cloud business, which now contributes 98% of total revenue, achieved a staggering 841% growth, bringing in $390 million. Annualized revenue reached $1.92 billion by the end of March, up from $1.25 billion just three months prior.

In response to its rapid growth and increasing demand, Nebius has revised its 2026 capital expenditure plans to a range of $20 billion to $25 billion. The company has secured significant contracts, most notably a $27 billion agreement with Meta Platforms and a $17.4 billion deal with Microsoft, which underscore its position in the competitive AI landscape. However, with a market cap of approximately $55 billion, analysts express concerns over the sustainability of its high valuation amid ongoing losses.