Nebius Group shares rise on Palantir partnership and AI growth

Nebius Group, an artificial intelligence cloud company, has seen significant stock movement following its selection by Palantir Technologies as a preferred partner for sovereign AI. The company reported substantial growth, including a 454% year-over-year increase in second-quarter revenue to $582.3 million and a swing to a non-GAAP EBITDA of $236.2 million.

Nebius holds more than $40 billion in signed customer commitments, including a deal with Meta Platforms worth up to $27 billion and a $17.4 billion agreement with Microsoft. The company’s annualized AI cloud revenue run rate grew from $1.25 billion in December to $3.0 billion in June, with management projecting a run rate between $7 billion and $9 billion by the end of 2026.

Financial analysts have responded to the company's trajectory with various ratings. Truist Financial recently upgraded Nebius Group to a ‘strong-buy’ rating. Other institutions, including Robert W. Baird and Freedom Capital, have also issued positive outlooks, while others like DA Davidson and BNP Paribas maintain neutral positions.