The bull case for Nebius is gaining serious institutional traction, even as one of its top lawyers quietly unloads a slice of stock. The AI infrastructure provider saw its first-quarter revenue rocket to $399 million, a 684% year-over-year explosion that has drawn some of Wall Street’s heaviest hitters into the register.
Qube Research, the systematic hedge fund giant, recently plowed roughly $238 million into Nebius shares. Fred Alger Management boosted its stake by a third, crossing the 10 million-share threshold, while Orbis Allan Gray now holds nearly 18 million shares. The buying spree comes as a handful of sell-side analysts slap ambitious price tags on the equity. Citizens Bank sees fair value at $270, Bank of America at $240, and Northland at $248. With the stock trading near $215, that implies roughly 20% upside from current levels.
The revenue engine is unmistakably the cloud-AI segment, where sales surged 841% in the first quarter. Operating margin in that business hit a healthy 32.5%, and management is targeting full-year revenue of up to $3.4 billion. To sustain that growth, Nebius is preparing to plough between $20 billion and $25 billion into new data-center capacity, a capital-spending plan aimed squarely at meeting hyperscaler demand.
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Power remains the most immediate bottleneck for that expansion. In a move to sidestep grid constraints, Nebius inked a $2.6 billion deal with Bloom Energy for fuel cells that will deliver 328 megawatts of capacity over a decade. The arrangement shortens the time to bring new data centers online — a critical edge in the race for AI compute. The company has also secured land and power capacity in Pennsylvania for a new AI factory that could eventually reach 1.2 gigawatts.
Execution risk is real, however. The financing burden is enormous, and some investors will keep one eye on insider behavior. Chief Legal Officer Boaz Tal recently sold 5,100 Class A shares at just under $200, a transaction that might raise eyebrows in isolation. But the sale was conducted under a pre-arranged trading plan set in February 2026 — a routine schedule that bears none of the hallmarks of a confidence-timing exit. Tal retains a substantial stake after the sale.
Elsewhere in the governance realm, Nebius filed an amended annual report with the SEC on Friday, adding only a clawback policy for executive bonuses. The filing was purely technical, leaving all financial statements and risk disclosures untouched. The stock closed at $214.77 on Friday, down roughly 2% for the day, but the long-term narrative remains centered on the $9.3 billion cash pile and the pace at which Nebius can convert capital into operational AI infrastructure.
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