Nebius Group N.V. (NASDAQ:NBIS) shares climbed more than 8% on Friday, as investors cheered the AI cloud provider's second-quarter results and the growing demand for its computing capacity. The move came even as the broader market struggled, with the Nasdaq slipping 0.41% and the S&P 500 down 0.27%.

Revenue Jumps 454% As AI Cloud Demand Soars

Nebius reported its Q2 numbers on Wednesday, and they were nothing short of spectacular. Revenue surged 454% year-over-year to $582.3 million, while group adjusted EBITDA hit $236.2 million, a healthy 41% margin.

The core AI cloud business was the star, growing 514% year-over-year. During the quarter, Nebius closed four landmark cloud deals, each with an average total contract value exceeding $1 billion. That's not chump change.

Blackwell Auction Signals Strong Pricing Power

One of the most telling signs of Nebius's strength came from its first capacity auction for NVIDIA Corporation (NASDAQ:NVDA) Blackwell chips. The auction cleared at prices 15% above the company's previous highest rates, a clear signal that demand is outpacing supply.

Founder and CEO Arkady Volozh said, "This quarter we launched our first capacity auction. It was very successful and cleared at the highest price we have seen for the Blackwell generation of chips, 15% above the highest price we ever charged before."

Volozh noted that the auction provided a real-time signal of the value of Nebius's computing capacity. He even suggested the company could sell its "entire 2027 capacity today" under current terms. That's a bold statement, but with numbers like these, it's hard to doubt him.

Customer Prepayments Help Fund Expansion

Nebius also secured favorable payment terms as it scales up. About 70% of its Q2 deals included customer prepayments covering 50% to 60% of capital expenditures. That means customers are putting their money where their mouth is, helping Nebius fund its expansion without stretching its balance sheet.

Futurum Equities market strategist Shay Boloor reacted to the results on YouTube with a playful jab: "Close your ears, Michael Burry." The comment was a nod to investor Michael Burry and his disclosed short position in Nebius. With numbers like these, it's easy to see why the bulls are feeling confident.

Nebius Stock Extends Strong Run

Nebius shares are trading well above their major moving averages, a sign of strong momentum. The stock sits about 34% above its 20-day simple moving average of $205.68, 24% above its 50-day average of $222.20, and a whopping 88% above its 200-day average of $146.45.

The moving average convergence divergence (MACD) remains above its signal line, and the MACD histogram is positive, pointing to continued bullish momentum. However, the stock's sharp rise above its moving averages could leave it vulnerable to a pullback if momentum fades.

Looking ahead, the $300 level could emerge as a key resistance area, sitting close to the stock's 52-week high of $299.86. If Nebius can break through that, the sky might be the limit.

NBIS Price Action: Nebius shares were up 8.23% at $276.04 at the time of publication Friday, according to market data.