TLDR
- NBIS stock dropped 31.1% in July but is still up 125% year-to-date
- Michael Burry disclosed a short position, triggering a 13.29% single-day drop
- Q1 revenue surged from ~$50M to $400M year-over-year
- Nebius raised $775M in debt in mid-July on top of $6.3B raised in Q1
- Q2 earnings are due Wednesday, Aug. 12
Nebius Group (NBIS) had a rough July. The AI cloud infrastructure company watched its stock fall 31.1% over the month, capping off a stretch that included a 13.29% single-day drop after hedge fund manager Michael Burry disclosed a short position.
Despite that, NBIS is still up 125% in 2026. The stock closed recently at $187.97, with a 52-week range of $62.01 to $299.86 and a market cap of around $47 billion.
The Burry short disclosure added fuel to existing questions around Nebius’ data center expansion plans and whether the current valuation holds up under scrutiny.
Analysts at Simply Wall St put fair value at $245.43, suggesting the stock may be around 22.6% undervalued at current prices. That estimate leans heavily on the assumption that Nebius can sustain hyper-growth in AI compute infrastructure.
The stock trades at a P/E of 66.1x, more than double the US Software industry average of 31.4x and above peers at 39.4x.
Revenue Is Growing Fast
Q1 revenue jumped from roughly $50 million a year ago to $400 million. That kind of growth is hard to ignore.
Nebius has also been scaling its contracted power capacity. Since last August, projections have grown from a minimum of 1 GW to over 4 GW. The company has secured up to 1.2 GW of power and land for a new AI factory in Pennsylvania.
But growth costs money. Nebius spent about $2.5 billion in Q1 alone, mostly on GPUs and GPU-related hardware. Management flagged rising co-location costs, operating lease expenses, and recruitment as key cost drivers.
Capital Raise Adds Weight
In mid-July, Nebius raised $775 million in debt financing to support further expansion. That followed a massive $6.3 billion raise in Q1, which included a $2 billion equity investment from Nvidia and $4.3 billion from convertible securities.
The scale of capital deployment raises a real question: can the revenue growth keep pace with the spending?
With the stock trading at roughly 14 times forward sales, valuation is not cheap. Any sign that customers might slow down their cloud capacity commitments could pressure the stock further.
All eyes now turn to Wednesday, Aug. 12, when Nebius reports Q2 results. Investors are watching for updates on compute capacity growth, customer pipeline, and whether cost pressures from Q1 have eased.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
