Nebius Group N.V. to report Q1 loss with focus on expanding GPU clusters

From Nasdaq: 2025-05-16 09:36:00

Nebius Group N.V. (NBIS) will report first-quarter 2025 results on May 20, with a Zacks Consensus Estimate of a 45 cents loss and total revenues at $63.8 million. The company is a specialized AI infrastructure company based in Amsterdam, with a core operation in AI-powered cloud platforms for intensive workloads. Despite challenges, Nebius is expanding its data center footprint and GPU deployments to enhance capacity in the US and Europe.

Nebius has not predicted an earnings beat for this quarter, with an Earnings ESP of -7.87% and a Zacks Rank #3 (Hold). The company is focusing on expanding its GPU clusters and global sales efforts, which are expected to boost top-line performance. However, the global macroeconomic environment and customer selectivity may impact revenue growth.

Nebius faces tough competition in the AI cloud infrastructure market dominated by giants like Amazon, Microsoft, and Alphabet. Nebius shares have declined by 19.5% in the past three months, underperforming its peers. The company’s valuation indicates potential risks despite lower Price/Book ratios compared to industry averages.

Investors should closely monitor Nebius’ ongoing investments in AI infrastructure and growth in its platforms. While long-term potential remains promising, margin pressure and competition pose challenges. With a Zacks Rank #3 (Hold), investors may want to wait for a better entry point, but existing investors can maintain their positions cautiously.

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Read more at Nasdaq: How Should You Play Nebius Stock Going Into Q1 Earnings?