Key Points

Nebius secured funding from Nvidia along with major computing agreements from leading clients.
The May earnings update significantly exceeded forecasts.
GPU rental rates stayed robust on the spot market and rose during the fall period.
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Shares of European AI neocloud Nebius Group N.V. (NASDAQ: NBIS) climbed 229.9 percent in the first half of 2026 based on figures from S and P Global Market Intelligence.

Hardware and semiconductor names tied to artificial intelligence performed well overall during the period. Nebius nevertheless led other AI neocloud peers thanks to solid operational delivery, sizable contract victories, and fresh AI-focused purchases.

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The investment by Nvidia (NASDAQ: NVDA) in the firm also provided support.

Nebius secures major contracts and earns Wall Street approval

Nebius has shifted into an AI neocloud over recent years. Because the AI era remains in early phases such stocks often move on large contract announcements that help reduce risk around infrastructure spending.

Nebius captured several notable deals in the first half. In January the company was chosen by the Israel Innovation Authority to construct the nations national supercomputer. Israel ranks among the most advanced technology hubs outside Silicon Valley and China so winning the contract via competitive bidding represents a strong endorsement.

Nebius also captured a substantial twenty-seven billion dollar multi-year agreement from Meta Platforms (NASDAQ: META) in March. Meta had already been a smaller-scale customer yet the five-year compute arrangement starting in 2027 is far larger and the announcement lifted shares.

Nebius received further recognition through investment as Nvidia (NASDAQ: NVDA) committed two billion dollars to the company. Under the terms Nebius gains early access to newest Nvidia architectures and Nvidia will assist in deploying five gigawatts of Nvidia-based capacity by 2030.

Nvidia had previously placed the same amount with rival CoreWeave (NASDAQ: CRWV) in January so the Nebius deal leveled the field. Nvidias support also raised prospects for additional customer introductions and capital raises. The expanded Meta Platforms agreement followed shortly after the Nvidia news suggesting the commitment may have acted as a catalyst.

These contracts set the stage for Nebiuss strong earnings release in mid-May. First-quarter revenue jumped 684 percent year over year and surpassed expectations. Adjusted EBITDA swung from a fifty-four million dollar loss to a one-hundred-thirty million dollar profit.

Beyond the quarterly results CEO Arkady Volozh highlighted that compute demand continues to far exceed supply pointing to robust future performance. This aligns with SemiAnalysis April data showing older Nvidia H100 rental rates rose roughly 40 percent in March versus October levels.

A key concern for neocloud firms like Nebius involves older GPUs losing value as newer chips arrive. The fact that rental prices for older GPUs not only held steady but increased signals strong residual value. Extended useful life for each Nvidia chip boosts returns on current investments and supports stock valuations.

Image source: Getty Images.

Nebius valuation appears elevated yet reasonable on 2027 forecasts

Following the first-half advance Nebius trades at 16.4 times this years average revenue estimate. The multiple falls to five times the average 2027 revenue projection and three times the most bullish analyst target.

The valuation looks reasonable though it assumes revenue more than triples next year even under the base case. Investors therefore require continued rapid revenue growth and profitable compute sales. Recent results and GPU pricing trends offer encouragement yet any material shift in AI demand could trigger a notable pullback given the current multiple.

Should you buy stock in Nebius Group right now?

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Stock Advisor returns as of July 12 2026.

Billy Duberstein and or his clients hold positions in Meta Platforms. The Motley Fool maintains positions in and recommends Meta Platforms and Nvidia. The Motley Fool maintains a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq Inc.