Is Nebius Group N.V. (NBIS) A Good Stock To Buy Now?

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 27 th . 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. Read More: 15 AI Stocks That Are Quietly Making Investors Rich Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential 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. Previously, we covered a bullish thesis on Nebius Group N.V. (NBIS) by Oliver | MMMT Wealth in April 2025, which highlighted long-term AI infrastructure scalability, GPU deployment plans, and valuation upside from conservative EV/sales assumptions. NBIS’s stock price has appreciated by approximately 889.88% since our coverage. Studio shares a similar view but emphasizes on Q1 2026 execution strength, margin expansion, Meta contract scale, and accelerating hyperscale AI infrastructure buildout. Nebius Group N.V. is not on our list of the 40 Most Popular Stocks Among Hedge Funds . As per our database, 60 hedge fund portfolios held NBIS at the end of the first quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NBIS and that has 10,000% upside potential, check out our report about this cheapest AI stock .