Nebius Group N.V. (NASDAQ:NBIS) stock surged nearly 12% in Wednesday's premarket trading ahead of its third-quarter earnings report Thursday.
The rally followed strong results from rival AI infrastructure provider CoreWeave Inc. (NASDAQ:CRWV), which beat Wall Street estimates and raised its full-year revenue forecast.
Investors have grown cautious about soaring data center spending, heavy financing needs and concerns over whether AI demand can justify massive infrastructure investments.
CoreWeave's strong results helped revive interest in the beaten-down neocloud sector ahead of Nebius' earnings.
Broader market strength also supported the rally. Nasdaq futures climbed 1.92%, while S&P 500 futures gained 0.91%.
Nebius Earnings Preview
Nebius will report its third-quarter results Thursday, Nov. 12.
Analysts expect a loss of 69 cents per share, compared with a loss of 40 cents a year earlier.
Revenue is expected to reach $907.53 million, up from $146.10 million a year earlier.
The AI cloud provider operates data centers and computing infrastructure across Europe and the U.S.
Analyst Outlook
Wall Street remains bullish on Nebius, with analysts maintaining a consensus Buy rating and an average price forecast of $279.27.
Recent analyst actions include Citigroup maintaining its Buy rating while lowering its price forecast to $265 on Nov. 4.
Piper Sandler maintained its Neutral rating and reduced its price forecast to $185 on Oct. 21.
Meanwhile, Rosenblatt initiated coverage with a Buy rating and a $304 price forecast on Oct. 8.
Nebius Technical Indicators Signal Caution
Despite Wednesday's rally, Nebius remains below key moving averages.
The stock trades 3.7% below its 20-day simple moving average (SMA) of $158.16 and 23.5% below its 50-day SMA of $198.90.
Moreover, its moving average convergence divergence (MACD) indicator remains below the signal line, suggesting weak momentum.
Traders are watching resistance at $168.50 and support near $146.
NBIS Stock Price Action
NBIS Stock Price Activity: Nebius Group shares were up 11.89% at $149.93 during premarket trading on Wednesday, according to market data.
