Why Nebius Stock Is Jumping Today

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Nebius Group (NBIS) shares are having a good morning. The stock climbed more than 6% in Thursday's premarket session, riding a wave of optimism from NVIDIA Corp.'s (NVDA) latest AI hardware update.

It's not just Nebius getting a boost. Nasdaq futures are up 0.81%, and S&P 500 futures have gained 0.26%, suggesting the whole tech sector is feeling the love.

NVIDIA Names Nebius as First Customer

The catalyst came during NVIDIA's earnings call on Wednesday. The company's CFO said volume shipments of Groq 3 LPX should begin later this quarter, and Nebius is expected to be the first customer. That's a pretty big deal for a company that's building out its AI infrastructure.

NVIDIA itself reported a blockbuster quarter. Revenue hit $96.22 billion, up 106% from a year ago, beating Wall Street's estimate of $92.18 billion. Adjusted earnings came in at $2.22 per share, topping the consensus of $2.10.

Technical Analysis

Looking at the charts, Nebius is in a strong long-term uptrend. The stock is trading about 50% above its 200-day simple moving average of $150.79, and roughly 11% above its 100-day SMA of $204.69. That's a lot of distance from the longer-term averages, which usually signals solid momentum.

On the shorter end, shares are 2% to 3% above their 20-day and 50-day averages, keeping the near-term trend positive. But here's the interesting part: the relative strength index sits at 48.11, which is neutral territory. And the 20-day SMA is still below the 50-day SMA, a bearish crossover that suggests the stock is digesting its earlier rally.

Resistance is near $230, while support sits around $200.50, close to a previous pivot and below the 100-day SMA. So there's a clear range to watch.

Analyst Outlook

Wall Street is pretty bullish on Nebius. The stock has a consensus Buy rating and an average price target of $248.83. Citigroup recently raised its forecast to $324 and maintained a Buy rating, while DA Davidson bumped its target to $250 but kept a Neutral stance. That's a wide spread, but the overall sentiment is positive.

Momentum vs. Value

According to stock rankings, Nebius scores a Momentum score of 97.87, which is very high. But its Value score is just 4.53. That tells you the market is paying up for growth, and the valuation is demanding. It's a classic high-momentum, high-valuation story.

ETF Exposure

There's also an ETF angle here. The Leverage Shares 2X Long NBIS Daily ETF (NBIG) has 111.6% exposure to Nebius. That means fund flows into or out of this ETF could amplify buying or selling pressure on the stock. Worth keeping an eye on if you're trading the name.

Price Action

In Thursday's premarket, Nebius shares were up 6.25% to $227.30, according to market data. That puts it right below that resistance level, so it'll be interesting to see if it can break through.