Aug 12 (Reuters) – Nebius beat quarterly revenue estimates on Wednesday as booming demand for AI infrastructure helped it land \u200clarger contracts and increase prices, sending shares of the cloud-computing \u200ccompany more than 15% higher in premarket trading. <\/p>\n
The results, which followed forecast raises by \u200blarger rival CoreWeave, showed that AI demand at the so-called neocloud firms continues to outstrip capacity, supporting their plans to spend billions of dollars on new infrastructure. <\/p>\n
Revenue at Nebius’ mainstay AI cloud unit rose nearly \u200csix-fold, powering overall sales \u2060to $582.3 million in the second quarter ended June, which beat estimates of $572.75 million, according to LSEG data. <\/p>\n
Nebius \u2060is converting growing demand into “contracted, profitable growth”, CEO Arkady Volozh said. <\/p>\n
The Nvidia- powered AI cloud provider closed four deals averaging over $1 billion each during \u200bthe quarter. \u200bTotal contract value nearly quadrupled \u200bfrom the prior quarter, while \u200cnew-customer contract values jumped more than ninefold. <\/p>\n
Capital expenditures totaled about $5.7 billion during the quarter, topping analysts’ expectations of $4.7 billion, according to Visible Alpha, as Nebius continued investing aggressively in GPUs and data-center expansion. <\/p>\n
Nebius said it could sell all of its planned 2027 capacity at current \u200cterms but was retaining some capacity \u200bto capture future demand. <\/p>\n
It raised its contracted \u200bpower target for the end \u200bof 2026 to 5 gigawatts from more than \u200c4 gigawatts previously and said it \u200bexpects to deploy \u200bmore than 1 GW of capacity annually starting in 2027. <\/p>\n
The company expects more than $9 billion in customer prepayments this year \u200band said it has \u200cmore than $40 billion in customer commitments. <\/p>\n
Nebius’ shares have surged more \u200bthan 130% so far this year. <\/p>\n
(Reporting by Rashika Singh \u200bin Bengaluru; Editing by Vijay Kishore) <\/p>\n","protected":false},"excerpt":{"rendered":"Aug 12 (Reuters) – Nebius beat quarterly revenue estimates on Wednesday as booming demand for AI infrastructure helped…\n","protected":false},"author":2,"featured_media":566760,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,1702,111,139,69,138581,145],"class_list":["post-566759","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-infrastructure","tag-new-zealand","tag-newzealand","tag-nz","tag-revenue-estimates","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/566759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=566759"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/566759\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/566760"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=566759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=566759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=566759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}