Nebius: Verticalization Is Strengthening The Bull Case

Nebius Group (NBIS) remains a Buy, with a $400/share target within two years based on robust execution and AI-driven demand. Q1 2026 revenues surged 684% YoY to $399M, with adjusted EBITDA margin expanding to 32.45% and core AI cloud margins doubling QoQ to ~45%. ARR reached $1.92B (+674% YoY), with strong customer demand and capacity already largely contracted, supporting sustained above-consensus growth.