Nebius: Profitable On EBITDA Basis As AI Cloud Demand Explodes

Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(7min)Comments(4)SummaryNebius Group achieved positive EBITDA in Q4, driven by explosive AI cloud growth and strong operating leverage.NBIS exceeded its 2025 ARR target by $250M and set 2026 guidance at $7–9B, anchored by Microsoft and Meta contracts.High CapEx requirements necessitate significant capital raises, posing dilution risk, but every new capacity is pre-sold amid supply-constrained demand.I maintain a Buy rating with a conservative price target of $132.16 (35% upside), recognizing both high-growth potential and elevated risk.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » mesh cube/iStock via Getty Images Nebius Group (NBIS) stock has gained 1.5% since my last report, which is only fractionally better than the 1.2% gain realized by the S&P 500. While supply chain constraints limit growth and AI CapExThis article was written byDhierin Bechai23.05K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.