Why Nvidia-Backed Nebius Group Stock Skyrocketed Thursday Morning
Key Points
Nebius will raise prices for its on-demand GPU compute by roughly 20% beginning next month.
The company is racing to meet the unprecedented demand.
Nebius is pricey, but that premium is backed by triple-digit growth.
- 10 stocks we like better than Nebius Group ›
Nebius Group (NASDAQ: NBIS) stock surged sharply higher Thursday morning, gaining as much as 11.2%. As of 2:27 p.m. ET, the stock had given back most of those gains, but was still up 2.1%.
The catalyst that sent the artificial intelligence (AI) and neocloud specialist higher was a report that the company is raising some prices.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: The Motley Fool.
AI demand is off the charts
Nebius is one of several neocloud operators that stockpile graphics processing units (GPUs) and provide on-demand AI processing. The company announced that it will raise the price for access to on-demand Nvidia (NASDAQ: NVDA) GPUs by roughly 20%, effective Oct. 1.
- H100 chips -- $4.50 per GPU hour, up 17%
- H200 chips -- $5.40 per GPU hour, up 20%
- B200 chips -- $8.50 per GPU hour, up 19%
- B300 chips -- $9.50 per GPU hour, up 21%
Daniel Newman, CEO of global technology advisory firm The Futurum Group, addressed the increase in a post on X, saying, "AI demand remains off the charts. [Nebius] raising prices 20% is just another example of that demand."
Nebius is recognized by Nvidia as a Reference Platform Cloud Partner, a designation reserved for select cloud providers that operate large-scale AI clusters optimized with Nvidia's reference architecture. Moreover, the chipmaker holds a 9.3% stake in Nebius, which includes a $2 billion investment announced earlier this year. The partnership also gives Nebius early access to Nvidia's top-of-the-line AI processors.
The accelerating demand is clear in the company's results. In the second quarter, Nebius grew revenue 454% year over year to $582 million. While heavy capital expenditures weighed on the bottom line, the company still slashed its adjusted net loss by 64% to $33 million. Management expects full-year revenue of $3.2 billion and an annualized run rate of $8 billion, both at the midpoint of its guidance.
Nebius has plenty of growth baked in, as the stock is selling for 43 times sales, which is a premium to be sure. However, if the company can continue its triple-digit growth, the combination of scale and leverage will help Nebius turn a profit, likely sooner than later.
Should you buy stock in Nebius Group right now?
Before you buy stock in Nebius Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $412,074!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,314,319!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 17, 2026.
Danny Vena, CPA has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Recommended Articles
