Goldman Sachs Reiterates Buy Rating on Nebius After Stunning Q1 Earnings
Goldman Sachs has reiterated its buy rating and $205 price target for Nebius Group (NBIS) following the AI cloud company's exceptional first-quarter 2026 financial results. Reported on May 13, Nebius achieved revenue of $399 million, marking a 684% year-over-year increase, while its AI business specifically grew by 841%. Adjusted EBITDA improved significantly from a $54 million loss to a $130 million profit. The strong performance was driven by capacity scaling, robust pricing power, and high utilization rates, with annualized recurring revenue reaching $1.92 billion. Consequently, Nebius shares surged 15.72% to close at $207.27. The company also announced strategic infrastructure expansions, securing 1.2 gigawatts of power for a new AI factory in Pennsylvania and raising its year-end contracted power target to over 4 gigawatts. Goldman Sachs noted that demand for compute and cloud services vastly exceeds current capacity, validating their positive outlook on the stock's immediate reaction and long-term potential in the booming artificial intelligence sector.
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