Nebius Rebounds 6% as Nvidia Results Revive AI Infrastructure Bets

Nebius Group (NBIS) climbed more than 6% in pre-market trading on Thursday, August 27, snapping a six-session losing streak that had erased over 20% of the Amsterdam-based AI cloud company's market value. The rebound came as investors digested blowout quarterly results from Nvidia (NVDA), whose earnings underscored persistent demand for the GPU infrastructure that underpins Nebius's business model.

The broader neocloud sector rallied in sympathy. CoreWeave (CRWV) gained about 5% in early trading, while IREN Limited (IREN) added roughly 4%. Nasdaq futures pointed 0.81% higher, with S&P 500 futures up 0.26%.

Nvidia reported fiscal second-quarter revenue of $96.22 billion, a 106% increase from a year earlier and comfortably above the $92.18 billion Wall Street consensus. Adjusted earnings of $2.22 per share also topped estimates of $2.10. Data center revenue, the segment most relevant to AI cloud providers, surged 117% to $89 billion.

During the earnings call, Nvidia's chief financial officer said volume shipments of Groq 3 LPX would begin later this quarter, with Nebius expected to be the first customer. That designation reinforced Nebius's position within the Nvidia ecosystem at a moment when investor confidence in the sector had wavered.

The rally follows a bruising stretch for Nebius. The company closed a $5.75 billion convertible notes offering on Monday, August 24, and simultaneously exchanged older convertible bonds due in 2029 and 2031 for 15.8 million new shares. The transaction raised concerns about shareholder dilution, contributing to the stock's slide.

Now, with the capital raise complete, attention has shifted to how the proceeds will fund data-center expansion, additional GPU purchases, and growth in Nebius's AI cloud operations.

Analyst sentiment has remained broadly constructive. Goldman Sachs's Alexander Duval recently raised his price target to $328 from $286, the highest on Wall Street, implying roughly 53% upside from current levels. He reaffirmed a Buy rating, citing robust demand for Nebius's AI infrastructure business.

Citigroup has an even more aggressive target of $324 with a Buy rating, while DA Davidson lifted its forecast to $250 with a Neutral stance. Across the Street, Nebius carries a Moderate Buy consensus based on six Buys and four Holds over the past three months, with an average price target of $277.22.

Technical indicators paint a mixed picture. The stock traded about 50% above its 200-day simple moving average of $150.79 and roughly 11% above its 100-day average of $204.69, signaling an intact long-term uptrend. The relative strength index stood at 48.11, indicating neutral momentum. However, the 20-day SMA remained below the 50-day SMA, a bearish crossover suggesting the stock is still consolidating after its earlier advance. Resistance sits near $230, with support around $200.50.

Benzinga Edge rankings assign Nebius a Momentum score of 97.87, underscoring strong price performance, while its Value score of just 4.53 reflects the demanding valuation that has made the stock sensitive to any perceived negative catalysts.

The Leverage Shares 2X Long NBIS Daily ETF (NBIG) maintains 111.6% exposure to Nebius, meaning fund flows into and out of that vehicle can amplify buying or selling pressure on the underlying shares.

For the neocloud sector more broadly, Nvidia's results provided a timely confidence boost. AI cloud providers like CoreWeave, Nebius, and IREN specialize in renting out scarce Nvidia GPUs to companies running AI workloads. Strong chip demand signals that the underlying economics of that rental model remain intact, even as individual companies grapple with idiosyncratic pressures.

CoreWeave has faced insider selling that dampened investor sentiment, while IREN is scheduled to report fourth-quarter fiscal 2027 earnings after Thursday's close, with Wall Street bracing for results weaker than a year ago. IREN nonetheless offers the largest implied upside among the three, with an average price target of $74.70 suggesting about 84% potential appreciation.