Morgan Stanley resets Nebius stock price forecast

Nebius Group gave Wall Street the benignant of 4th that keeps the artificial quality infrastructure commercialized alive, adjacent arsenic investors go much selective astir which companies tin really crook AI request into revenue.

The Amsterdam-based AI unreality institution reported first-quarter gross of $399 million, up 684% from $50.9 cardinal successful the aforesaid play past year. Adjusted EBITDA reached $129.5 million, compared with an adjusted EBITDA nonaccomplishment of $53.7 cardinal a twelvemonth earlier, according to Nebius’ first-quarter results.

The maturation was driven by the company’s halfway Nebius AI unreality business, stated successful the 2026 Q1 letter to shareholders, which generated $389.7 cardinal successful gross during the quarter, up 841% from the year-ago period. That concern accounted for astir 98% of full radical revenue, portion annualized run-rate gross reached $1.92 cardinal astatine the extremity of March, up 674% twelvemonth implicit twelvemonth and 54% from the extremity of December.

Morgan Stanley lifts its people aft net

In the Morgan Stanley enactment fixed to TheStreet, analysts raised their Nebius terms people to $144 from $126, portion keeping an Equal-weight standing connected the stock. The determination reflected stronger execution, amended pricing, faster capableness progress, and request that continues to tally up of disposable supply.

The updated people inactive tells a much cautious communicative than the header summation suggests. Morgan Stanley’s enactment listed Nebius shares astatine $207.27 astatine the adjacent connected May 13, meaning the firm’s revised people remained good beneath the stock’s caller terms adjacent aft the increase.

Morgan Stanley said Nebius’ Q1 revenue, ARR, and adjusted EBITDA each came successful supra consensus. The steadfast besides noted that absorption reiterated its 2026 targets for $3.0 cardinal to $3.4 cardinal successful revenue, $7 cardinal to $9 cardinal successful ARR, and an adjusted EBITDA borderline of astir 40%.

Power becomes the halfway of the Nebius communicative

The biggest displacement successful the Nebius communicative is nary longer conscionable however overmuch AI request exists. It is however rapidly the institution tin bring capable power, GPUs, and information halfway capableness online to service that demand.

Nebius said contracted capableness already exceeds 3.5 gigawatts, supra its anterior year-end extremity of 3 GW. The institution besides raised its contracted powerfulness guidance to much than 4 GW by the extremity of the year, with owned capableness representing much than 75% of the total.

More Nebius

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• Goldman Sachs resets Nebius banal terms people for remainder of 2026

The institution besides announced a caller Pennsylvania tract with up to 1.2 GW of power. That task is expected to beryllium delivered successful phases opening successful 2027, adding to Nebius’ increasing U.S. footprint alongside its 1.2 GW AI mill successful Independence, Missouri.