NBIS Stock Surges 30% After Earnings, Defying Michael Burry's Bet Against Nebius

Nebius (NBIS) shares are ripping higher on Wednesday after the artificial intelligence (AI) infrastructure company posted explosive Q2 earnings, featuring a more than 5x year-on-year increase in revenue. 

NBIS recorded a better-than-expected $582 million in revenue for its second financial quarter on $23 million in adjusted EBITDA, representing a remarkable 1,000% growth versus last year. 

The quarterly print arrives shortly after Big Short investor Michael Burry revealed a short position in NBIS. At the time, Nebius stock was hovering around $212, versus nearly $250 as of this writing. 

Nebius Stock Is a Buy Despite Burry’s Call

Burry’s bear case rested on the premise that Nebius was taking on dangerous levels of debt to fund a massive up to $25 billion capital expenditure plan. 

Aggressive borrowing for AI data centers, he had warned, will trigger leverage distress if enterprise compute demand cooled. 

However, the quarterly release NBIS posted this morning silences overcapacity concerns.  

A more than 45% sequential growth in revenue that drove adjusted EBITDA into positive territory proves Nebius’s debt-financed GPU infrastructure isn’t sitting underutilized; in fact, it’s converting immediately into high-margin revenue. 

Note that NBIS shares ripped through their 20-day and 50-day moving averages (MAs) on Aug. 12, reinforcing that bulls have taken back control for the near term. 

What Else Makes NBIS Shares Attractive?

The Q2 earnings strengthen Nebius’s status as the premier pure-play neocloud provider powering global AI buildouts. 

With first-half revenue reaching $981 million, the company looks right on track to hit its full-year guidance of at least $3 billion.  

Although depreciation costs remain elevated due to continuous hardware buildouts, NBIS’s strong balance sheet — anchored by over $9 billion in cash — provides a significant runway to service debt obligations while scaling. 

Backed by a $40 billion contract pipeline and long-term commitments from enterprise AI leaders, including Meta (META) and Microsoft (MSFT), NBIS’s results confirm that unit economics scale rapidly as compute clusters go live, forcing short sellers to rethink their bearish posture. 

What’s the Consensus Rating on Nebius?

Wall Street analysts also remain bullish on NBIS stock, especially after Nvidia disclosed a massive $500 billion funding plan targeted at neocloud operators. 

The consensus rating on Nebius shares sits at “Moderate Buy,” with price objectives as high as $410 indicating potential for continued gains moving forward.