Nebius (NBIS) shares soared over 20% on Thursday after the artificial intelligence infrastructure provider said it swung to an adjusted profit of $584 million in its fiscal second quarter (Q2). 

Investors are cheering NBIS shares also because the firm’s management now sees annualized run-rate revenue hitting as much as $1.1 billion this year, up from their prior guidance of $1 billion tops. 

Nebius stock has experienced a meteoric surge over the past four months. Including today’s gains, it’s up nearly 260% versus its April low. 

Management’s Commentary Warrants Owning Nebius Stock

Other than market-beating financials, management’s positive remarks in the earnings release make up for a strong enough reason to stick with NBIS stock in the second half of 2025. 

Nebius is aggressively scaling capacity since artificial intelligence (AI) infrastructure demand will only grow from here as new use cases emerge, according to the company’s chief executive, Arkady Volozh. 

To prepare for it, the Amsterdam-headquartered firm plans on securing more than 1 gigawatt (GW) of power by the end of next year (2026), he added. 

Note that Nebius’ revenue was already up well over 600% on a year-on-year basis in its fiscal Q2. 

NBIS Stock Well-Positioned to Achieve its Targets

Nebius’ quarterly release and commitment to scaling capacity suggest it will achieve its target of 100 megawatts of online capacity by the end of 2025, said D.A. Davidson analyst Alex Platt in a research note today. 

Platt is also convinced that NBIS will now be able to achieve its longer-term target of 1 gigawatt much sooner than expected and “achieve mid-single-digit billions of revenue given the proper infrastructure and power is likely to already be in place.”

Investors should note, however, that Nebius stock already sits roughly in line with Platt’s recently raised price target of $65 at the time of writing. 

Valuation Remains a Concern for Nebius Group

Despite the aforementioned positives, investors should remain wary of valuation concern tied to NBIS stock, at least in the near term. 

According to Barchart, while the consensus rating on Nebius shares remains at “Strong Buy,” the mean target of nearly $69 no longer indicates meaningful upside from here.