Why I'm Rating Nebius A Strong Buy After The April Rally

2026-05-27 04:04:54 ET

Investment Thesis

I am rating Nebius Group N.V. ( NBIS ) a Strong Buy with a price target of $342 per share. This is because I believe the company has moved from being an AI infrastructure concept into one of the few public vehicles giving investors direct exposure to the physical bottlenecks behind AI growth. This is not software demand. This is GPU capacity, data center power, long-term hyperscaler demand, infrastructure financing, and operating leverage, all showing up at the same time. In Q1 2026 , NBIS reported revenue of $399 million. This was a 684% year-over-year [y/y] increase. On the other hand, its AI cloud business delivered $389.7 million of revenue. ARR reached $1.92 billion, a 674% y/y and 54% sequentially. To me, that tells me that this is no longer a “maybe one day” story. The demand is already showing in the numbers. And the market finally started waking up in April. I say this because I think investors began connecting the key pieces. Meta Platforms, Inc. ( META ) demand , NVIDIA Corporation ( NVDA ) validation , Microsoft Corporation ( MSFT )-style hyperscaler contracts , power availability, and a company that is now guiding for real EBITDA margins. That is why I believe the rally can continue....

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