Is NBIS a good stock to buy? We came across a bullish thesis on Nebius Group N.V. on Studio Innovation’s Substack by Studio. In this article, we will summarize the bulls’ thesis on NBIS. Nebius Group N.V.’s share was trading at $208.37 as of May 27th. NBIS’s trailing P/E was 80.33 according to Yahoo Finance.
Nebius Group N.V., a technology company, engages in building full-stack infrastructure to service the global AI industry in the United States and internationally. NBIS reported an exceptional Q1 2026 performance, with group revenue surging 684% year over year to $399 million, modestly above estimates, driven primarily by explosive growth in its core AI cloud business, which generated $390 million and reached an annualized run-rate of $1.9 billion, up sharply from $1.25 billion in the prior quarter.
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The company significantly outperformed expectations on profitability as well, posting EPS of $2.11 versus a loss estimate, alongside $129.5 million in adjusted EBITDA, reflecting a 22% margin, while the AI segment margin expanded dramatically to 45% as utilization and pricing power strengthened. Despite reporting an adjusted net loss of $100.3 million, the underlying cash generation profile improved meaningfully, supported by $2.26 billion in operating cash flow against heavy infrastructure investments, signaling a highly capital-intensive but rapidly scaling AI infrastructure buildout.
Nebius also highlighted a major strategic expansion by securing land and up to 1.2 GW of power capacity in Pennsylvania for a new owned AI factory, reinforcing its ambition to become a hyperscale AI infrastructure leader. The company raised full-year 2026 CapEx guidance to $20–$25 billion as demand visibility accelerates, supported by strong customer commitments, including a $27 billion five-year contract with Meta combining $12 billion in dedicated compute and a $15 billion optional capacity component, alongside a $2 billion Nvidia equity investment and over $4 billion raised via convertible notes, bringing liquidity to $9.3 billion.
Management reiterated full-year guidance of $3–$3.4 billion in revenue and a $7–$9 billion annualized run-rate, with EBITDA margins expected to approach 40% despite near-term volatility. With contracted power exceeding 3.5 GW and targeting 4 GW, Nebius is positioning itself for sustained hyperscale expansion, and the combination of hypergrowth, large contracted backlog, and strategic AI infrastructure positioning implies significant re-rating potential and substantial upside from current levels as the AI infrastructure cycle accelerates.
