Nebius Stock Hit an All-Time High This Week. Is It Too Late to Buy?
Key Points
Nebius Group's backlog pipeline is exploding.
The company has secured a massive amount of power to be able to satisfy demand.
Nebius broke ground on its first massive domestic AI factory.
- 10 stocks we like better than Nebius Group ›
Nebius Group (NASDAQ: NBIS) reported earnings this week, and let's just say investors were impressed. It wasn't just the 684% year-over-year revenue growth, either. That came off a very low base, so it looked more impressive than it was. The company even reported increasing net losses versus the year-ago period.
There was one aspect of the report, though, that pushed Nebius stock up 24.2% for the week, according to data provided by S&P Global Market Intelligence. The company impressively raised its contracted data center power capacity guidance for 2026 by one-third to at least 4 gigawatts (GW).
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Image source: Nebius Group.
Momentum stock caution
That means Nebius will be more able to satisfy the massive demand for its AI compute infrastructure. The company backed up the power numbers by also announcing this week that it broke ground on its first U.S. gigawatt-scale AI factory to help utilize that power.
There's no doubt about the strong momentum in Nebius' underlying business. Its first-quarter AI cloud revenue rocketed 841% year over year, making up the vast majority of total revenue. But the stock has a ton of momentum as well.
Shares reached a record high and have already vaulted 163% higher just this year. That has led some Wall Street analysts to issue caution, and investors should listen. Morgan Stanley analysts reportedly just acknowledged the impressive execution and demand picture in a recent report. It also increased its price target to $144 from $126 per share.
That's still well below its closing price of just under $220 this week, though. Momentum stocks can often plunge as fast as they rise. It might be smart for Nebius owners to take some off the table at this point.
Should you buy stock in Nebius Group right now?
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
