Nebius: The AI-Pocalypse Panic Is A Buying Opportunity

Nebius is reaffirmed at a buy rating due to sustained hypergrowth, robust demand, and improving profitability. The company raised year-end contracted capacity guidance to 5GW, with strong pricing power reflected in rising ACV per MW. Adjusted EBITDA margin reached 41% in Q2, with narrowing net losses and a comfortable debt-to-equity ratio of 1.7, supporting ongoing CapEx. The Palantir partnership and conservative capital structure position Nebius favorably amid sector risks, justifying its premium valuation and offering attractive risk/reward.

Introduction Back in June, I provided an update for Nebius Group N.V. (NBIS). Despite remaining bullish on the stock, I decided to downgrade from a strong buy to just a buy, citing valuation expansion. However, it was