Nebius Group, based in Amsterdam and listed on NASDAQ, has just announced their quarterly revenue figures that have surprised analysts on Wall Street. In the second quarter of 2026, Nebius reported revenue of $582.3 million, reflecting a staggering 454% growth compared to the same quarter last year. In response to this impressive performance, Bank of America raised its price target for the stock from $280 to $310.
Analyst Tal Liani, maintaining a Buy rating on Nebius, noted that the stock closed at approximately $259.20 following earnings release. This adjustment suggests that the stock may have about 20% upside potential to meet the new price target. This comes at a time when Nebius has already seen its stock price more than double, up over 200% year-to-date, indicating that investors are optimistic about its future.
#What Does the Financial Data Reveal?
The growth of Nebius is not just limited to revenue; the company has completely transformed its profitability. In Q2 2026, Nebius reported an adjusted EBITDA of $236.2 million, a significant recovery from a $21 million loss during the same period the previous year. Furthermore, the company has provided full-year 2026 revenue guidance of between $3 billion and $3.4 billion, along with an annualized run-rate revenue expectation of $7 to $9 billion. This robust projection is driven by their focus on large-scale GPU clusters and cloud services tailored for enterprise-level artificial intelligence workloads.
#How Did Nebius Emerge as a Market Leader?
Nebius rose from the restructuring of Yandex N.V. in 2024, a transformation prompted by geopolitical factors that led the Russian tech giant to sell off its international businesses. Under the guidance of CEO Arkady Volozh, Nebius has swiftly shifted its focus toward establishing a strong presence in the global AI infrastructure market.
#What Are the Risks to Consider?
Despite the positive outlook shared by Bank of America, not all investors are convinced by Nebius’s rapid ascent. Michael Burry, a well-known figure in the investment world, has increased his short position on Nebius, betting against the stock at around $247 per share. This presents a notable contrast to Bank of America’s bullish perspective, as Burry is recognized for identifying market bubbles.
This divergence creates a complex narrative for institutional investors observing the AI infrastructure sector. On one hand, Bank of America argues that Nebius is still undervalued given its growth prospects. On the other hand, Burry suggests that the stock may have already factored in too much future success, urging caution among prospective investors.