Nebius shares surge after Q2 earnings beat

Nebius AI, a semiconductor-focused cloud infrastructure provider, saw its shares jump on Tuesday after reporting second-quarter earnings that exceeded market expectations.

The company posted adjusted earnings before interest, taxes, depreciation and amortization of $420 million, up 15% year-over-year and above the $390 million consensus estimate compiled by Refinitiv. Revenue rose 12% to $1.2 billion, also surpassing forecasts of $1.15 billion.

Chief Executive Officer Alexei Volkov attributed the outperformance to strong demand for AI-driven cloud services, particularly in high-performance computing and generative AI workloads. The company guided full-year revenue to grow between 10% and 12%, in line with prior projections, while EBITDA is expected to expand by 14% to 16%.

Investors reacted swiftly, pushing Nebius stock up 8.3% in pre-market trading following the results. The gain extended to 6.1% by midday in New York as broader markets digested the news. The surge has reignited debate over whether the rally marks the beginning of a sustained bull run or represents a temporary relief bounce after a prolonged period of underperformance.

Analysts at Goldman Sachs maintained a neutral rating but raised their price target to $185 from $170, citing improved visibility into AI infrastructure spending. Meanwhile, JPMorgan reiterated its overweight stance, arguing that Nebius remains well-positioned to capitalize on secular trends in AI adoption.

The stock has gained 22% over the past month, outperforming the Philadelphia Semiconductor Index, which is up 11% over the same period. Year-to-date, Nebius shares are still down 4%, reflecting a broader correction in tech valuations earlier this year.

Volatility remains elevated as investors weigh macroeconomic risks, including potential regulatory scrutiny of AI deployments and ongoing geopolitical tensions affecting semiconductor supply chains.