Nebius Group N.V. (NASDAQ:NBIS) stock gained more than 8% on Friday as investors digested the AI cloud provider’s second-quarter results and signs of strong demand for computing capacity.
The move came despite broader market weakness. The Nasdaq fell 0.41%, while the S&P 500 lost 0.27%.
Revenue Jumps 454% As AI Cloud Demand Soars
Nebius reported second-quarter results on Wednesday. Revenue surged 454% year over year to $582.3 million. Group adjusted EBITDA reached $236.2 million, representing a 41% margin.
Driven by a core AI cloud business that grew 514% year-over-year, Nebius successfully closed four landmark cloud deals during the quarter, with an average total contract value exceeding $1 billion each.
Blackwell Auction Signals Strong Pricing Power
Nebius also highlighted stronger pricing for its NVIDIA Corporation (NASDAQ:NVDA) Blackwell capacity. The company’s first capacity auction cleared at prices 15% above its previous highest rates.
“This quarter we launched our first capacity auction. It was very successful and cleared at the highest price we have seen for the Blackwell generation of chips, 15% above the highest price we ever charged before,” founder and CEO Arkady Volozh said.
Volozh said the auction provided a real-time signal of the value of Nebius’ computing capacity. He added that the company could sell its “entire 2027 capacity today” under current terms.
Customer Prepayments Help Fund Expansion
Nebius also secured favorable payment terms as it expands capacity. About 70% of its second-quarter deals included customer prepayments covering 50% to 60% of capital expenditures.
Futurum Equities market strategist Shay Boloor reacted to the results on YouTube, saying, “Close your ears, Michael Burry.” The comment referenced investor Michael Burry and his disclosed short position in Nebius.
Nebius Stock Extends Strong Run
Nebius shares remained well above their major moving averages.
The stock traded about 34% above its 20-day simple moving average of $205.68. It was also 24% above its 50-day average of $222.20 and 88% above its 200-day average of $146.45.
The moving average convergence divergence, or MACD, remained above its signal line. The MACD histogram was also positive, pointing to continued bullish momentum.
However, the stock’s sharp rise above its moving averages could leave it vulnerable to a pullback if momentum weakens.
The $300 level could emerge as a key resistance area. That level sits close to the stock’s 52-week high of $299.86.
NBIS Price Action: Nebius shares were up 8.23% at $276.04 at the time of publication Friday, according to Benzinga Pro data.
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