The company Nebius surpassed revenue projections for the quarter on August 12, driven by strong demand for artificial intelligence infrastructure. This scenario allowed the signing of more robust contracts and an increase in prices, resulting in an appreciation of more than 17% in the cloud computing company’s shares in initial negotiations.
This positive performance from Nebius comes a day after larger competitor CoreWeave revised its annual forecasts upward. The impressive results from both companies strengthened investors’ perception that the demand for AI computing capacity continues to outstrip supply in the market.
Nebius’s artificial intelligence cloud unit, which is its core business, saw a nearly six-fold increase in revenue. This brought the company’s total sales to $582.3 million in the second quarter ended in June, exceeding estimates of $572.75 million, according to LSEG data.
According to Arkady Volozh, the company’s CEO, Nebius is transforming growing market demand into “profitable, contracted growth.”
The AI cloud provider, which uses Nvidia technology, combined high customer demand with an effective business strategy. During the period, four contracts were signed, each valued at more than 1 billion dollars on average.
The total value of contracts almost quadrupled compared to the previous quarter. The values of agreements with new customers registered a jump of more than nine times.
Capital expenditures reached about $5.7 billion during the quarter, exceeding analyst projections of $4.7 billion, according to Visible Alpha. Nebius maintained an intense pace of investment in GPUs and the expansion of its data centers.
Asked about xAI’s offering of computing capacity at premium prices, a Nebius executive stated that “all the new entrants coming into the market don’t change the market for us.” He added that the company would be able to sell all of its planned capacity for 2027 under current terms.
AI cloud agreements signed in the quarter, with annual contract values in excess of $20 million per megawatt, are expected to be implemented by the end of the fourth quarter, as announced by the company.
Nebius raised its contracted energy target for the end of 2026 to 5 gigawatts, an increase from more than 4 gigawatts previously. The company is expected to deploy more than 1 GW of capacity annually from 2027 onwards.
