This Nvidia-Backed Cloud Company's Stock Is Soaring on Stronger-Than-Expected Earnings

Nebius shares popped Wednesday after the company reported stronger-than-expected results for the second quarter. The company also raised its year-end contracted power target. Nebius shares could be set to add more than one-quarter of their value in a single session. Shares of Nebius ( NBIS ) were up nearly 29% in recent trading to pace the Nasdaq, after the AI infrastructure firm posted second-quarter results that topped analysts’ estimates. The Nvidia-backed ( NVDA ) company, whose core business is a full-stack AI cloud, reported adjusted EBITDA of $236.2 million on revenue that jumped 454% year-over-year to $582.3 million. Analysts polled by Visible Alpha had expected $168.9 million and $570.7 million, respectively. “We continue to build our future capacity pipeline through our own and co-located colocated sites, and today raise our year-end contracted power target to 5 gigawatts,” CEO Arkady Volozh said on the company’s earnings call, according to a transcript provided by AlphaSense. With Wednesday’s gains, Nebius shares have roughly tripled in value this year, though they remain about 17% off their June highs.