2d illustration of Cloud computing by Blackboard via Shutterstock
Palantir Technologies (PLTR) has named Nebius Group (NBIS) its preferred sovereign AI infrastructure partner. The companies announced the partnership on Sept. 8, with plans to integrate Nebius's computing and inference endpoints into Palantir's enterprise platform.
That would allow eligible commercial customers to run and fine-tune open AI models on Nebius Group's hardware while retaining control of their data, computing resources, and models. NBIS stock gained 7.7% to close at $243.88 following the news.
The Palantir deal adds to a growing list of major wins for Nebius. Last month, NBIS jumped more than 34% in one session, becoming the Nasdaq-100's top gainer after Nebius reported a 514% increase in Q2 AI Cloud revenue.
With NBIS shares having already more than doubled in 2026, does this latest endorsement make the stock a buy at current levels? Let's find out.
Nebius' Financial Position
Nebius Group runs an AI cloud business, renting out GPU computing power and related services to companies that need to build, train, or run AI models. Investors have taken notice. NBIS shares are up 151% over the past 52 weeks and 180% so far in 2026.
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The latest quarterly numbers show why. Q2 revenue rose 454% from a year earlier and 46% from Q1 to $582.3 million. Nebius AI Cloud generated $574.9 million of that total, up 514% year-over-year (YoY) and representing about 98% of the company's revenue. Annualized run-rate revenue also climbed to $3 billion at the end of Q2, from $1.9 billion at the end of March, as Nebius Group brought more capacity online and signed new customers.
Profitability improved as well. Adjusted EBITDA reached $236.2 million, compared with a $21 million loss a year earlier, for a 41% margin. The AI Cloud unit generated $285.7 million in adjusted EBITDA, equal to a 49.7% margin. Nebius Group still reported a loss of $0.12 per share, but that was better than the $0.67 loss analysts expected.
The company is spending heavily to keep up with demand, putting about $5.7 billion into GPUs and data centers during Q2. It ended the quarter with $8 billion in cash, including $2.3 billion of operating cash flow. Nebius also has more than $40 billion in customer commitments and signed four Q2 deals with average total contract values above $1 billion. Management maintained its 2026 revenue forecast of $3 billion to $3.4 billion.
Palantir Deal Adds to Growth Case
The new agreement will bring Nebius Group's compute and inference services into Palantir's platform. Eligible commercial customers will be able to run and fine-tune open AI models on Nebius's hardware while keeping control of their data, models, and computing resources. The companies also plan to add capacity through modular data centers in locations where power is already available. Palantir said it selected Nebius because its infrastructure can work directly with Palantir's Sovereign AI Operating System, which includes AIP, Ontology, Foundry, and Apollo.
The deal is another sign that major technology companies see value in Nebius's platform. Earlier this year, the company signed a cloud agreement with Meta Platforms (META) worth up to $27 billion. That followed its $17.4 billion capacity agreement with Microsoft (MSFT) last September. In July, an SEC filing also showed that Nvidia (NVDA) owns a 9.3% stake in Nebius, building on Nvidia's $2 billion investment in March.
Nebius Group is also building the physical capacity needed to support these deals. In May, it began construction on a large AI data center campus in Independence, Missouri. The roughly 400-acre site is Nebius's first U.S. project of this scale and is expected to create about 1,200 construction jobs and 130 permanent roles.
Wall Street Weighs NBIS Stock's Upside
Nebius Group is expected to report its next quarterly results on Nov. 10, covering the September quarter. Analysts expect a loss of $0.56 per share, compared with a $0.39 loss a year earlier. For the full year 2026, Wall Street expects a loss of $3.76 per share, wider than the $1.77 loss reported in 2025.
Still, analysts remain upbeat on NBIS stock. Citigroup raised its price target on Nebius to a then Street-high $287 from $169 in May and kept its "Buy" rating. Citi pointed to the company's fast-growing cloud business, recent acquisitions, and large customer deals as reasons for its optimism.
Wedbush analyst Dan Ives has also called Nebius Group his top AI infrastructure pick for 2026. He likes the company's technology and its position as demand for AI computing capacity grows. Ives also sees Nebius as a possible takeover target for a major cloud company, although that remains speculation.
Overall, all 17 analysts covering NBIS rate the stock a consensus "Moderate Buy." Their average price target is $289.43, suggesting about 26% upside from current levels.
Conclusion
Nebius looks like a compelling, though increasingly high-expectation, way to invest in the AI infrastructure buildout. Palantir's preferred-partner designation strengthens the company's credibility with enterprise customers and could create a valuable new channel for its rapidly expanding compute platform. Still, the partnership carries no disclosed revenue commitment, so investors should view it as a strategic endorsement rather than an immediate financial windfall.
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On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
