Analyst Shrugs Off Nebius Data Center Delay As 'Slight Blemish' on Strong Quarter
Nebius Group (NASDAQ:NBIS) stock fell Friday, extending Thursday’s nearly 17% sell-off as investors weighed a weaker 2026 revenue forecast and data center delays. NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang’s resignation and a wider loss at rival Nscale also pressured neocloud stocks . However, Rosenblatt Securities analyst John McPeake remains bullish on Nebius despite the near-term challenges.…
On Friday, Nebius Group (NBIS) experienced a decline in stock value, amplifying Thursday's nearly 17% drop. This came as investors analyzed a less impressive 2026 revenue forecast and data center delays. Microsoft and NVIDIA's (NVDA) CEO Jensen Huang's resignation also impacted neocloud stocks, but analyst John McPeake from Rosenblatt Securities remains optimistic about Nebius.
Despite the upcoming challenges, McPeake keeps a Buy rating and anticipates the Vineland data center delay to be temporary. The Vineland, New Jersey, facility is under a $17.4 billion agreement with Microsoft Corp. (MSFT) for 2031 and is expected to be operational by 2027. McPeake believes strong AI demand could enable Nebius to charge higher prices if the Microsoft deal is cancelled.
Nebius raised its 2026 capital spending estimate by 20% to fund over 1 gigawatt of new capacity, projecting 2027 expenditures between $40 billion and $50 billion. The company also anticipates breaking even before taxes in the fourth quarter of 2027, surpassing previous estimates of a $347 million pretax loss.
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