Nebius Group NV,

Nebius Group NV, (NASDAQ: NBIS) headquartered in the Netherlands, operates within the technology sector and focuses on building a diverse portfolio of artificial intelligence (AI)–driven technology assets. The company aims to establish a global, AI-centric enterprise that unites core components of AI innovation — including infrastructure, data, and advisory services. Its offerings include a specialized cloud platform designed for AI workloads, development support for autonomous vehicle technologies, and solutions in the field of generative AI.

Key Business Updates

• Revenue Growth and Market Expansion: Nebius Group reported a substantial increase in financial performance during Q2 FY2025, achieving revenue of USD 105.1 million, marking a 625% year-over-year (YoY) and 106% quarter-over-quarter (QoQ) rise. This acceleration was primarily driven by robust customer demand and near-peak utilization of its AI infrastructure platform. The company’s core AI infrastructure business accounted for the majority of this growth, with its annualized run-rate revenue rising to USD 430 million from USD 249 million in the prior quarter. This performance underscores Nebius’ growing dominance in the AI infrastructure market and its ability to monetize expanding AI use cases globally.
• Operational Efficiency and Profitability Improvement: The company demonstrated significant operational leverage, as reflected in the reduction of costs relative to revenue. Cost of revenue rose by 291% to USD 30.1 million yet decreased as a share of total revenue from 53% in Q2 FY2024 to 29% in Q2 FY2025, highlighting efficiency gains from scale. Moreover, Nebius’ adjusted EBITDA loss narrowed to USD 21.0 million, representing a 64% improvement YoY, driven by profitability in the core AI infrastructure business. The improvement of USD 37.1 million indicates disciplined execution and operating leverage as revenues scaled.
• Investment in Capacity and Technological Leadership: Nebius continued to invest heavily in capacity expansion, with capital expenditures reaching USD 510.6 million in Q2 FY2025, primarily allocated to GPU acquisitions and data center development. The company aims to achieve 220 MW of connected power by end-2025 and more than 1 GW by end-2026. These investments are central to supporting the growing global demand for AI compute. Additionally, Nebius achieved top-tier MLPerf® Training v5.0 benchmark results, ranking among the leaders in infrastructure performance and scalability, further solidifying its position as a preferred AI cloud provider.
• Diversification of Customer Base and Ecosystem Development: During the quarter, Nebius diversified its customer portfolio by adding global technology leaders such as Cloudflare, Prosus, and Shopify, alongside numerous AI-native startups like HeyGen, Lightning.AI, and Photoroom. The company’s platform enhancements—such as Managed Slurm, improved cluster reliability, and high-throughput storage solutions—bolstered user experience. Moreover, collaborations with NVIDIA, AnyScale, LightningAI, and BaseTen deepened its ecosystem, enhancing developer accessibility and reinforcing Nebius’ ecosystem-first growth strategy.
• Expansion of Other Business Units: Beyond its AI infrastructure segment, Nebius’ subsidiary TripleTen delivered strong revenue growth, adding around 6,000 new learners in Q2 and benefiting from AI-enhanced learning tools that improved project completion rates by 35%. Avride, its autonomous delivery arm, scaled pilot operations across U.S. and Japanese cities, progressing toward a commercial launch with Uber later in 2025. These adjacent ventures, though smaller in contribution, position Nebius for diversified revenue streams in high-growth AI and automation markets.
• Cost Structure and Operating Discipline: Despite rising investments, Nebius demonstrated meaningful improvement in cost discipline. Product development expenses, though up 34% YoY to USD 42.8 million, fell sharply as a percentage of revenue from 221% to 41%, reflecting operating scale efficiencies. Sales, general, and administrative (SG&A) expenses declined 10% YoY to USD 68.2 million, dropping from 521% to 65% of revenue due to the absence of one-time legal and consulting costs from the prior year. These metrics collectively underline Nebius’ maturing cost management as it scales globally.
• Balance Sheet Strength and Strategic Outlook: Nebius ended Q2 FY2025 with USD 1.68 billion in cash, providing ample liquidity to fund its aggressive expansion strategy. The company has raised over USD 4 billion in total capital and continues to explore additional financing options to support its growth trajectory. With its valuation at USD 6 billion following a recent funding round and a raised annualized run-rate revenue forecast to USD 900 million–USD 1.1 billion, Nebius is well-positioned to capitalize on accelerating demand for AI infrastructure. The management anticipates continued growth, backed by scale, ecosystem partnerships, and operational efficiency.

Technical Observation (on the daily chart):

Nebius Group NV’s stock exhibits a strong long-term uptrend but is currently experiencing a sharp short-term correction. After reaching a peak near USD 130 in early October 2025, the price has declined to around USD 97, falling below its 20-day moving average while staying near the 50-day support level. The RSI at 40.59 indicates potential for a near-term rebound. With the price remaining close to a key support area, any selling imbalance could trigger a move higher in the near term.

Nebius Group delivered exceptional performance in Q2 FY2025, showcasing strong execution and accelerating momentum across its AI infrastructure business. Revenue surged 625% year-over-year to USD 105.1 million, supported by robust customer demand and near-peak platform utilization, while adjusted EBITDA loss narrowed significantly by USD 37 million, reflecting improved operational efficiency. Backed by USD 1.68 billion in cash and over USD 4 billion in secured capital, Nebius continues to scale aggressively, expanding global data center capacity toward 1 GW by 2026. The company’s growing enterprise clientele, ecosystem partnerships with NVIDIA and leading AI developers, and leadership in performance benchmarks reinforce its position as a frontrunner in next-generation AI infrastructure, providing a compelling growth story underpinned by strong fundamentals and strategic clarity..

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Nebius Group NV, (NASDAQ: NBIS) at the close market price of USD 98.62 as of October 22, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is October 22,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.