Nebius reported third-quarter revenue of $980 million, up 571% year over year and beating expectations. The stock initially rose premarket, then reversed course, plunging as much as 20% after the open. It’s still down 16% now—giving back all those gains from the good news overnight.
There’s nothing wrong with the earnings report; the problem is what the company sells. Nebius is in the GPU-rental business, and its data centers are packed with NVIDIA GPUs. Its prepayments and finance leases are all tied to that supply chain. If Jensen Huang resigns tonight, the neocloud sector gets repriced along with it: CoreWeave fell as much as 17% after the open, and IREN was down too. The first Vera Rubin systems have indeed come online, but the market is now watching to see whether money can keep flowing through this supply chain.
There’s nothing wrong with the earnings report; the problem is what the company sells. Nebius is in the GPU-rental business, and its data centers are packed with NVIDIA GPUs. Its prepayments and finance leases are all tied to that supply chain. If Jensen Huang resigns tonight, the neocloud sector gets repriced along with it: CoreWeave fell as much as 17% after the open, and IREN was down too. The first Vera Rubin systems have indeed come online, but the market is now watching to see whether money can keep flowing through this supply chain.