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Nebius Group Explodes 350% on AI Boom – Microsoft Deal and Earnings Next Week in Spotlight
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Nebius Group Explodes 350% on AI Boom – Microsoft Deal and Earnings Next Week in Spotlight

by
22 October 2025
  • Stock Skyrockets: Nebius Group (NASDAQ: NBIS) has surged ~350% in 2025 amid booming demand for AI infrastructure [1] [2]. A key catalyst was a 5‑year, $17.4 billion AI compute deal with Microsoft, which sent NBIS up nearly 50% in a day [3]. Even after profit-taking, shares traded in the mid-$110s in late Oct [4].
  • Earnings Date Set: The company announced it will release Q3 2025 results on Nov. 11, 2025 (before market open) and host a conference call the same morning [5]. (Analysts had previously expected an Oct. 29 release [6].) Street forecasts see a modest loss per share (~$0.50) for Q3 [7].
  • Blistering Growth: Nebius reported $105.1 M revenue in Q2 2025 – up 625% year-over-year – with EPS of –$0.38 (beating guidance) [8]. Management raised its annualized revenue target to roughly $900M–$1.1B by end-2025 [9]. Longer-term, a Nasdaq analysis projects Nebius could hit ~$4.25 billion revenue by 2027, and Nebius itself guides to ~$1 billion annual recurring revenue by 2026 [10].
  • New Products & Ventures: In October Nebius launched AI Cloud 3.0 “Aether”, targeting enterprise customers with SOC-2/HIPAA compliance [11]. Co-founder Roman Chernin said the upgrade delivers “supercomputer performance, hyperscaler ease-of-use, and the trust and governance required for production AI” [12]. Beyond cloud services, Nebius holds Avride (autonomous driving tech) and TripleTen (tech education) [13] and has stakes in startups like ClickHouse and Toloka.
  • Wall Street’s View: Analysts are overwhelmingly bullish. MarketBeat notes a consensus “Buy” rating on NBIS with an average price target around $91.20 [14]. Leading firms have lifted targets into triple digits – Goldman Sachs recently set a $137 target and BWS Financial $130 [15]. BWS analyst Hamed Khorsand praised the Microsoft deal for giving “unprecedented clarity” on Nebius’s long-term revenue potential [16] and called Nebius “significantly de-risked” by the contract [17].
  • Insiders & Investors: Institutional investors are also piling in. FNY Investment Advisers more than tripled its NBIS stake in Q2, and recent SEC filings show multiple hedge funds and asset managers adding positions [18]. Such buying reflects confidence in Nebius’s growth story – even as the company burns cash on its massive expansion plans.

Nebius Group is a Netherlands-based tech firm (spun out of Yandex in 2022) that provides full-stack AI cloud infrastructure. Its high-performance GPU data centers and software help clients (like Cloudflare and Shopify) train and run machine-learning models [19]. CEO Arkady Volozh hailed the Microsoft deal as a “first of [many] major contracts” that will “accelerate the growth of our AI cloud business… in 2026 and beyond” [20].

Investors will be watching Nebius’s Q3 report closely. Analysts expect revenue to remain on a steep growth curve, even if the company is still running losses to fund expansion. As Hamed Khorsand summarized, the Azure partnership “provides unprecedented clarity” and helps Nebius “win additional marquee customers” [21]. Yet experts also caution that heavy capital spending and competition (from rivals like CoreWeave, Amazon, Google) pose risks. For now, Nebius’s valuation – a market cap exceeding $25 billion [22] – reflects sky-high expectations for the AI cloud market.

In summary, Nebius Group’s meteoric rally has captured Wall Street’s attention [23]. With earnings due Nov. 11 and a rapidly expanding product lineup, the coming weeks will test whether the company can keep up its blistering growth and justify its booming stock price. (Sources: Nebius press releases [24]; TechStock² analysis [25] [26]; MarketBeat [27] [28]; Reuters/Nasdaq profiles [29].)

Nebius Stock Pullback: Why NBIS Is Cooling After the Microsoft AI Deal | Still a Hidden Winner?
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References

1. ts2.tech, 2. ts2.tech, 3. ts2.tech, 4. ts2.tech, 5. www.businesswire.com, 6. www.marketbeat.com, 7. www.marketbeat.com, 8. www.marketbeat.com, 9. ts2.tech, 10. ts2.tech, 11. ts2.tech, 12. ts2.tech, 13. www.businesswire.com, 14. www.marketbeat.com, 15. ts2.tech, 16. ts2.tech, 17. ts2.tech, 18. www.marketbeat.com, 19. ts2.tech, 20. ts2.tech, 21. ts2.tech, 22. ts2.tech, 23. ts2.tech, 24. www.businesswire.com, 25. ts2.tech, 26. ts2.tech, 27. www.marketbeat.com, 28. www.marketbeat.com, 29. ts2.tech

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Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

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