Nvidia-Backed Nebius Surges Over 400% as Valuation Worries Mount

The latest development questions whether Nebius remains a buy after a 400%+ rally, citing its $55B market cap at 17x forward sales. This follows D.A. Davidson’s May 18 Neutral rating on Nebius and CoreWeave, which praised long-term AI demand but flagged limited near-term upside due to rich valuations and risks. Nebius delivered explosive Q1 results with revenue up 684% to $399M and AI cloud revenue surging 841%, yet analysts highlight $20–25B capex plans, dilution risk, and customer concentration that could pressure the stock despite Nvidia’s $2B stake.