Nebius Books $399M Quarter and Nasdaq-100 Entry, But Insiders Cash Out $130M

Nebius reports 684% revenue surge to $399M, acquires Eigen AI, but insiders sold $130M in shares. Stock up 183% YTD, joining Nasdaq-100.

Nebius has placed a $643 million bet on Eigen AI, a California-based startup that fine-tunes artificial intelligence models for production deployment. The acquisition, announced alongside a blowout quarterly earnings report, underscores the company’s push beyond commodity cloud services into higher-margin software. Yet even as the stock rides a 183% year-to-date gain and prepares to join the Nasdaq-100 index on June 22, the management team has been selling shares worth a combined $130 million over the past three months.

The contrast between institutional and insider sentiment could hardly be starker. On one side, Nebius closed the first quarter with revenue of $399 million — a 684% surge from the prior year that handily beat analyst forecasts. Operating profit swung to roughly $130 million from a loss in the year-ago period. The company also holds multi-year capacity agreements totaling about $46 billion, including a $27 billion commitment from Meta, a $17 billion deal with Microsoft, and a planned $2 billion investment from Nvidia. Chief executive Jensen Huang publicly praised Nebius’s infrastructure buildout over the weekend.

On the other side, filings show that Nebius insiders have not bought a single share in the last twelve months. Instead, they have been steadily offloading equity. Chief technology officer Danila Shtan recently sold a significant block, and aggregate insider sales in the most recent quarter reached $130 million. The selling has kept the stock 17% below its early-June record high even as the broader rally continues. Shares jumped 8% on Monday to €216.75, partly fueled by the impending index inclusion, which forces passive funds to accumulate the stock.

Management’s capital allocation strategy is equally ambitious. Nebius plans to spend up to $25 billion on new capacity to meet customer demand for 2027. In Missouri and Pennsylvania, massive AI data centers are under construction, powered by a $2.6 billion fuel-cell agreement with Bloom Energy. The company expects to have one gigawatt of capacity online by year-end. Meanwhile, it is expanding its software stack: after buying the search platform Tavily for $275 million in February, the Eigen AI deal adds inference-optimization technology — the fastest-growing niche in the AI ecosystem.

The physical footprint is also growing. Nebius now operates 16 global locations, and a new “Physical AI Living Lab” in Europe gives robotics startups access to Nvidia chips and cloud infrastructure. The initiative is directly supported by Nvidia and complements a distribution partnership with TD SYNNEX, which will integrate Nebius’s infrastructure into enterprise offerings.

For now, the combination of surging revenue, blue-chip contracts, and the Nasdaq-100 catalyst has kept the stock in demand. But the persistent insider selling injects a note of caution. Whether the $25 billion infrastructure bet delivers the promised returns — and whether management’s exit signals a peak — will determine if the rally can sustain its blistering pace.