NBIS stock quarterly report shows massive increase in earnings after increase in AI products selloff

AMSTERDAM: NBIS reported a strong quarterly update, showing notable earnings momentum driven by increased demand in its AI-focused products and cloud services.

The company’s stock closed at about $2.44, reflecting a 82.75 per cent gain over the past three months and an impressive 395.87 per cent rise over the last year.

During the quarter, NBIS saw a significant earnings improvement, with gains of roughly $3.19 versus the expected $0.85, which was supported by an unexpected activity in its AI and cloud infrastructure segment.

The company also recorded one positive and two negative EPS revisions over the past 90 days, according to analyst updates. Its overall financial health is currently rated as “fair performance” by InvestingPro.

On the investment side, Nebius sharply increased capital expenditure to about $2.5 billion, up from $544 million a year earlier, slightly exceeding estimates of $2.4 billion, according to Visible Alpha. This spending was largely directed toward GPUs and data center infrastructure powering its AI cloud business.

The company continues to expand its position in the AI infrastructure market by providing Nvidia GPUs, cloud computing platforms, storage, and managed tools that help developers build, train, and deploy AI models using its proprietary systems.

Analysts expect Nebius to scale its data center capacity to around 900 megawatts (MW) by the end of the year, a development that could further support revenue growth as AI demand accelerates.