Nebius stock opened sharply higher after investors digested a major long-term power arrangement with Bloom Energy and the technology company's recent quarterly results. In morning trading the shares climbed roughly 13.9% as the market reacted to the details of a $2.6 billion agreement that will see Bloom install, operate, and maintain solid oxide fuel cell systems at Nebius's initial U.S. AI data center site in Independence, Missouri.
Under the arrangement, Bloom Energy will provide about 328 MW of total installed fuel cell capacity. Nebius had previously planned to rely on conventional gas turbine engines at that location but changed course to adopt fuel cells with the stated aims of lowering emissions and speeding the deployment of its AI clusters. The full 328 MW is intended to replace traditional engines entirely, with power expected to be brought online in three phases. Each phase carries a 10-year supply term.
The Bloom Energy deal arrived on the heels of a quarter that significantly beat expectations. Nebius reported Q1 2026 group revenue of $399 million, a 684% increase year-over-year and up 75% from the prior quarter. AI cloud revenue accounted for $389.7 million of that total, representing an 841% year-over-year gain. Management reiterated its full-year 2026 revenue guidance of $3.0 billion to $3.4 billion and maintained targets for annualized recurring revenue of $7.0 billion to $9.0 billion and an adjusted EBITDA margin of about 40%.
Following the quarterly release, analysts have moved to higher targets on the stock. Citi raised its price objective on NBIS to $287 while Northland lifted its target to $248. Those revisions, combined with the Bloom Energy announcement, have contributed to the recent build in momentum for the shares.
The broader market offered little lift to Nebius today. Major U.S. indices were trading modestly lower in the session, making the company's double-digit gain a largely company-specific move. Market commentators note that Nebius is emphasizing a decentralized energy approach intended to enable faster commissioning of server farms compared with competitors, a strategy that analysts have generally welcomed as strengthening Nebius's contract-winning profile.
Peer dynamics in the neocloud AI infrastructure sector remain notable. Direct competitor CoreWeave competes in the same segment, and both names were recently downgraded to Neutral by D.A. Davidson. Even so, Nebius's new power arrangement with Bloom differentiates its execution profile from peers.
Investors and analysts see the Bloom agreement as the proximate catalyst for today's rally, with residual momentum anchored by other material developments. Those include the company's headline Q1 results, a capacity contract with Meta valued at $27 billion, a $2 billion equity investment by NVIDIA, and a flow of analyst upgrades. Nebius's backlog of remaining performance obligations has grown to $33.6 billion, underpinned by the five-year Meta contract that is valued at $27 billion - of which $12 billion is firm and $15 billion is contingent. That combination of firm revenue and contingent opportunities has continued to draw capital interest despite a cautious broader market.
Taken together, the long-term Bloom Energy power supply agreement and the prior quarter's outsize revenue growth provide the immediate rationale observers cite for the stock's move today. The company has reiterated its 2026 ambitions and retained elevated margin targets, while recent analyst price-target increases reflect growing confidence among some sell-side firms.