Nebius: The AI Infrastructure Bottleneck Is Becoming A Profit Engine

Nebius Group N.V. earns a Buy rating, driven by explosive AI cloud growth, robust demand, and a unique customer-funded expansion model. Q2 revenue surged 454% YOY to $582.3M, with AI cloud contributing $575M and adjusted EBITDA margin reaching 50%. NBIS secures long-term contracts with substantial upfront payments, accelerating capital recovery and enabling rapid infrastructure scaling. Valuation remains high at 21x forward EV/Sales, but strong operating leverage, customer prepayments, and early power commitments support the bullish thesis.

I last wrote on Nebius Group N.V. (NBIS) back in March. I perceived at the time that there was a handsome long-term prospect in its fast-growing AI infrastructure business. Since then, this investment