Nebius stock keeps pricing power as the 2027 capacity race intensifies

Nebius is drawing investor attention as strong demand for AI computing meets the high cost of expanding data-center capacity. In an analysis published on Thursday, October 29, 24/7 Wall St. argued that the company is seeking to protect pricing rather than follow rivals into a race to the bottom.

The analysis said Nebius had chosen to hold back part of its planned 2027 capacity after its first capacity auction cleared 15% above the company's previous highest Blackwell price. It also cited midterm contracts producing 20 million to 25 million US dollars per megawatt, while short-term deals were being negotiated at 40 million to 50 million US dollars per megawatt.

Growth Supports Expansion Plans

The report highlighted second-quarter revenue of 582.3 million US dollars, an increase of 454% from the prior year. Cost of revenue declined to 23% of revenue from 29%, while adjusted EBITDA margin rose to 41% from 32% in the first quarter, according to the analysis.

Remaining performance obligations stood at 37.5 billion US dollars, and about 70% of second-quarter deals included an upfront prepayment. Management expects prepayments to exceed 9 billion US dollars in 2026, a funding source that could help finance new capacity without relying solely on external borrowing.

Nebius stock traded at 142.85 euros on Lang & Schwarz at 11:30 Berlin time on Friday, October 30, 2026. The real-time quote of Nebius stock is available for investors.

Capital Intensity Keeps Risks High

The constructive pricing picture comes with substantial execution risk. The analysis cited Nebius's 2026 capital-spending guidance of 20 billion to 25 billion US dollars, a second-quarter GAAP net loss of 190.4 million US dollars and 12.7 million shares sold through its at-the-market program.

Customer concentration adds another pressure point: three customers accounted for 24%, 21% and 14% of second-quarter revenue. The report also noted that Nebius held 17.62 billion US dollars in liabilities against 10.34 billion US dollars in equity, alongside 8.04 billion US dollars in cash.

For investors, the central issue is whether pricing power and contracted demand can generate returns that justify the capital required for the next expansion phase. The company has confirmed a 2026 revenue target of 3 billion to 3.4 billion US dollars and a year-end annualized run rate of 7 billion to 9 billion US dollars, while targeting more than one gigawatt of new capacity annually in 2027.

The broader US equity market remains the relevant backdrop for Nebius, with investor sentiment toward AI infrastructure shaped by the Nasdaq Composite.

Further developments can be followed in more news and analyses on Nebius stock.

Source: 24/7 Wall St.