Nebius has amended its 2026 power contracting plans to secure 2.5 gigawatts of capacity, up from an initial 1-GW target, in response to sustained demand for AI training clusters. The company’s pipeline now includes six new hyperscale facilities across the Netherlands and Germany, each designed to house 50,000 NVIDIA GPUs. At full ramp, these sites are projected to contribute over 60% of Nebius’ total available compute capacity by Q4 2026.

Management projects an annualized revenue run rate between $7 billion and $9 billion by December 2026, compared with a $551 million run rate recorded at the end of Q3 2025. This represents a compound quarterly growth rate of roughly 80%. The accelerated expansion of leased rack space and long-term power purchase agreements with European utilities underpin the forecast, with signed contracts accounting for 1.8 GW of the total 2.5 GW capacity commitment.

Although currently unprofitable, Nebius targets a mature operating margin of 35%, in line with leading cloud-infrastructure peers. Applying that margin to a midpoint revenue estimate of $8 billion yields $2.8 billion in operating profit. After provisioning 30% for taxes, depreciation and financing costs, the company expects nearly $2.0 billion in net income. This would mark a significant inflection from the current multi-hundred-million-dollar operating loss.

Investor sentiment dipped following a broader sell-off in AI infrastructure stocks triggered by underwhelming guidance from a major cloud provider. Nebius shares declined 11% over December, despite no company-specific setbacks. Volatility has been driven by concerns over GPU depreciation and debt-financed expansion, though subsequent rebounds were fueled by strong memory-chip demand reported by a leading semiconductor supplier and multiple analyst upgrades within the neocloud subsector.