Nebius stock price has done well this year as the company continued to benefit from the artificial intelligence (AI) tailwinds and soaring demand for its solutions. NBIS was trading at $120 in the pre-market session, up by 530% from its lowest level this year. 

Why Nebius stock is soaring this year

The Nebius stock price has been in a strong bull run this year, outperforming top indices like the S&P 500 and Nasdaq 100. 

Its rally is because of the business it is in, where it operates large data centers, which have seen strong demand amid the ongoing AI craze. 

A good example of this is the recent $17.4 billion deal with Microsoft. In this deal, Nebius will supply GPU infrastructure and dedicated AI capacity from it new data center in New Jersey. 

The company hopes that its business will continue seeing more large-scale clients in the coming months. Some of the potential clients would be large companies like OpenAI, Anthropic, Amazon, xAI, and Oracle. 

The ongoing NBIS stock price surge is in line with the ongoing performance of companies in the industry. Other top gainers in the industry are firms like CoreWeave, IREN, and Terafirm.

Nebius stock price has also jumped after Avride, it autonomous vehicle company, received a $375 million investment from Uber. Avride has an existing relationship with Uber, which will launch its robotaxis later this year. 

Nebius to release its earnings report

The next important catalyst for the Nebius stock price is the upcoming earnings, which will provide more information about its business.

Analysts anticipate the results to show that its revenue rose to $155 million in the last quarter. This figure is then expected to jump to $265 million in the next quarter, bringing the annual revenue to $578 million. The annual revenue will be $578 million, up by 392% from what it made last year.

Analysts also expects the company’s growth to gain momentum, with its revenue hitting $1.67 billion next year. However, it will make a big loss as it continues investing in its growth by building more data centers.

The upcoming results will provide more color on the recently launched Nebius Token Factory, its recently launched product. NTF is a new production inference platform that enables vertical AI companies to deploy and optimize open-source and custom models at scale.

The most recent results showed that Nebius’ business was in a strong upward trajectory. It made $105 million, up by 625% from the same period ast year. Its CEO said:

“Demand for AI infrastructure — compute, software and services — is only going to get stronger as use cases multiply. We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW of power by the end of 2026.

Still, there are potential catalysts for Nebius and its stock. The first one is its pricey valuation, which stands at over $28 billion, giving it a forward P/E ratio of 114. 

Also, the company’s industry is becoming highly competitive as firms like IREN, Terawulf, and Bitfarms joining the industry. The other risk is that the hyped AI bubble may burst soon, a move that will affect companies in the sector.

NBIS stock has formed a double-top pattern

NBIS stock chart | Source: TradingView

The other major risk the Nebius stock price has had is that it has formed a double-top pattern at around $130 and a neckline at ~$95. This pattern points to an eventual pullback in the coming days, potentially to $90.

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