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Nebius' Contracted Power Guidance Continues to Surge. Here's What That Means for the Stock.
Currently.com • • business
Key Points:
- Nebius has consistently raised its contracted power capacity guidance for 2026, moving from 3 gigawatts in February to 5 gigawatts by August, driven by expansion across North America and Europe.
- The company is a leading neocloud provider supporting AI growth, securing major contracts with tech giants like Meta Platforms, which has committed $27 billion over the next decade for AI capacity starting in 2027.
- Nebius reported a 454% year-over-year revenue increase in Q2 2026 to $582.3 million, reflecting strong growth potential as it continues to secure deals and expand its data center footprint.
- Building AI data centers is capital-intensive, leading Nebius to raise $4 billion in convertible notes and rely on prepayments that cover 50-60% of capital expenditures, easing immediate cash flow needs.
- Despite its rapid growth, Nebius is not currently recommended by The Motley Fool's Stock Advisor, which highlights other stocks with stronger long-term growth potential based on historical performance.
