Nebius Group (NBIS) shares skyrocketed 19.92% in pre-market trading on Wednesday after the AI infrastructure company reported second-quarter results that handily beat Wall Street expectations, fueled by insatiable demand for AI computing capacity.

The Amsterdam-based neocloud company posted revenue of $582.3 million for the quarter ended June, up 454% from a year earlier and above the consensus estimate of $572.75 million. Revenue at its core AI cloud business, which accounted for roughly 98% of group revenue, surged more than 500% year-over-year. Adjusted EBITDA swung to a positive $236.2 million from a loss of $21 million in the prior-year period, reflecting the company's strengthening pricing power and operational leverage.

Chief Executive Arkady Volozh said the company closed four landmark AI cloud deals during the quarter, each with an average total contract value of more than $1 billion, with total contract value growing nearly fourfold sequentially. Roughly 70% of deals signed included customer prepayments, and the company said demand for AI computing capacity is so strong that it could sell out its entire planned 2027 capacity on current terms today. Nebius also reaffirmed its full-year 2026 outlook and raised its contracted power target for year-end 2026 to 5 gigawatts. Analysts noted that significant short interest in the stock, including a disclosed position from Michael Burry, may also be contributing to a short squeeze that amplifies the rally.