Nebius Joins the Hyperscaler Race: $27B in Deals, Three Acquisitions, and a $2B Nvidia Backing Fuel a 450% Run

Nebius posts massive Q1 earnings beat with 684% revenue growth, net profit $621M, backed by Nvidia's $2B investment and multi-billion cloud deals with Meta and Microsoft.

Jensen Huang rarely hands out $2 billion checks without a plan. When the Nvidia chief executive took the stage at Computex 2026 in Taiwan and anointed Nebius a "world-class AI cloud provider," he also wired the money to prove it. That single endorsement ignited a rally that has nearly tripled the stock since January and pushed the company's market narrative from scrappy infrastructure upstart to full-fledged hyperscaler contender.

The numbers underpinning that story arrived with Nebius' first-quarter earnings, which demolished analyst expectations. Revenue rocketed to $399 million, a 684% jump from the prior year, while net income landed at $621 million. The adjusted EBITDA margin clocked in at 45% — a profit profile rare for a company still in the midst of a multibillion-dollar buildout. Analysts had been braced for a per-share loss; instead, the bottom line flipped decisively into the black.

Nebius didn't waste the quarter's momentum. Between January and March, it closed three acquisitions — Tavily, Eigen AI, and Clarifai — each filling a distinct slot in the AI value chain. Tavily brings real-time web search to the Nebius cloud, letting AI agents query live data rather than stale training sets. Eigen AI optimizes models at the algorithmic layer, while Clarifai handles system-level inference tuning. Together, they feed into Nebius' in-house "Token Factory" offering, which is built for efficient inference at scale. The strategy is clear: compress years of organic development into months through targeted buys, and accelerate developer adoption with complementary technology.

Those technology bets are backed by a deal sheet that blurs the line between startup and incumbent. Meta Platforms has committed to up to $27 billion in spend over five years, with $12 billion carved out for dedicated GPU capacity and another $15 billion for any unsold capacity Nebius can't place elsewhere. Microsoft holds a contract that could swell to $19.4 billion. On top of that, Nebius scored a $2 billion strategic investment — Huang's personal stamp — plus ongoing support from Nvidia's hardware ecosystem. The combination gives Nebius an industrial credibility that purely organic infrastructure plays rarely command.

To deliver on those commitments, Nebius broke ground on its first U.S. gigawatt-scale AI factory in Independence, Missouri, a 400-acre site that will create 1,200 construction jobs. The company aims to push total capacity beyond five gigawatts by 2030.

The market has priced in much of that ambition. Shares closed Thursday at €223.85, roughly 8% below the all-time high of €242.95 set just one week earlier on June 2. Since the start of the year, the stock has nearly tripled, and over the past twelve months it has surged more than 450%. The relative strength index sits at 68 — flirting with overbought territory — while the 30-day annualized volatility of 134% makes the ride characteristically choppy. The stock now trades more than 120% above its 200-day moving average, signaling that momentum remains intact but valuation headroom is narrowing.

Analyst targets suggest the rally still has legs, though the consensus is far from euphoric. BNP Paribas initiated coverage with a Neutral rating and a $255 target, citing strong execution and Nebius' 25% stake in ClickHouse but cautioning that upside relative to the 2026 ARR outlook is limited. Citi has the street-high target at $287, followed by Citizens at $270 and Northland at $248.

Institutional money is piling in regardless. Leopold Aschenbrenner's Situational Awareness hedge fund now holds more than 12.4 million shares worth roughly $3.3 billion. Geode Capital Management boosted its position by more than 1,000% in the latest quarter.

The open question is whether Nebius can convert its rapidly integrated technology stack — Tavily's search, Eigen AI's optimization, Clarifai's inference, and a pipeline of hyper-scale contracts — into accelerating revenue that justifies a price already near its peak. The next catalyst could be another acquisition or a new mega-deal, but for now, the company's ability to monetize what it has built will decide whether the June high becomes a stepping stone or a ceiling.