AI infrastructure company, Nebius Group NV (NASDAQ:NBIS), has fully sold out all available capacity, with CEO Arkady Volozh confirming the company's AI infrastructure buildouts are consistently absorbed by overwhelming demand.
Company Plans Renewed Capex To Keep Up With Demand
During the company’s third-quarter earnings call on Tuesday, Volozh said, “Every time we bring capacity online, we sell all of it,” while adding, “If we had more capacity, we could have sold more,” underscoring the sheer scale of demand for AI compute.
“Capacity today is the main bottleneck to revenue growth, and we are now working to remove this bottleneck,” he said, before outlining the company’s efforts to scale up its capacity.
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As part of its expansion strategy, the company is launching new data centers across multiple global sites, naming Israel and the U.K. as a few regions where it has capacity coming online soon, alongside one facility in New Jersey. Volozh noted yet again that “all the capacity in those regions were pre-sold before the launch.”
The company’s Chief Revenue Officer, Marc Boroditsky, reiterated the same, saying, “Even before going live, we're pretty much sold out.” He added that of the $4 billion in orders that the company added to its pipeline during the quarter, “we were only able to convert a portion of that, given the constraints of our capacity.”
“Everything we built was ultimately sold,” Volozh emphasized. “In theory, we should try to build as much as we can.”
Stock Surges Following The Results
The company released its third-quarter results on Tuesday, reporting $146.1 million in revenue, up 355% year-over-year, but falling short of consensus estimates of $155.11 million. It posted a loss of 40 cents per share, beating analyst projections for a loss of 49 cents per share.
Nebius shares were down 7.73% on Tuesday, closing at $102.22, but are up 1.56% overnight, after the company announced a new $3 billion deal over five years with Meta Platforms Inc. (NASDAQ:META), adding to the spike in the stock.
The stock scores high on Momentum in Benzinga’s Edge Stock Rankings, with a favorable price trend in the medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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