Nebius Group N.V. reported exceptional Q1 results with revenues up 684% year-over-year and annual recurring revenue growth of 674%, despite facing compute capacity limits. The company raised its 2026 contracted power guidance to over 4GW and increased capital expenditure plans to $20–25 billion to meet growing AI cloud demand. Adjusted EBITDA margin improved to 32% in Q1, with a 2026 target of around 40%, indicating strong profitability momentum. Although the stock valuation has expanded, the company’s rapid growth keeps the risk/reward profile favorable, leading to a downgrade from strong buy to buy.
Meta Platforms is considering entering the cloud computing market to utilize its excess compute capacity and create new revenue streams amid rising AI expenses. This move sparked market concerns about competition, causing selloffs in cloud firms Nebi...
Meta Platforms is expanding its cloud computing with a $27 billion AI investment framework, indicating over $100 billion in annual AI capital expenditure. This expansion supports ongoing GPU overbuild and persistent AI compute scarcity globally. Nebi...
