NBIS Bullish revelations from Nvidia’s earnings
$NBIS Nvidia’s Q1 FY2027 earnings are strongly bullish for Nebius bc they explicitly validate and accelerate the AI-native cloud thesis that Nebius embodies.
In the earnings call today, Stacy Rasgon (Bernstein) asked where “AI native clouds” sit and whether they grow faster.
Jensen Huang placed “AI native clouds” firmly in Nvidia’s faster-growing ACIE segment (AI Cloud, Industrial, Enterprise) alongside sovereign AI and enterprise workloads. He stated that while both hyperscale and ACIE categories will grow “incredibly fast,” he expects the second category to grow faster over time as it addresses a much larger economic opportunity! This was perhaps the most directly bullish statement pertaining to Nebius business model and growth trajectory
AI natives like Nebius were highlighted as ideal Nvidia customers because they require fully integrated, highly rentable architectures with rapid time-to-first-token and broad model support—precisely the strengths of Nvidia’s platform. This segmentation directly benefits Nebius, which operates as a pure-play AI-native cloud built from the ground up for high-performance compute rental rather than a retrofitted general cloud.
The broader earnings reinforce the tailwind. The ACIE segment grew 31% sequentially (versus 12% for hyperscale), with AI cloud revenue inside it more than tripling year-over-year.
Agentic AI demand was described as having “gone parabolic” because tokens are now profitable, aligning perfectly with Nebius’ deep partnership with Nvidia to build a best-in-class inference and agentic AI stack and Nebius acquisitions in inference/agentic (Eigen Ai, Tavily) will be the added rocket fuel and margin boosters for their in-house designed platform Token Factory.
Combined with Nvidia’s robust $91 billion Q2 revenue guidance, sustained ~75% gross margins, pricing power in cloud rentals, and ecosystem expansion (partner data centers >10 MW nearly doubling), the AI boom is only accelerating and the results confirm that demand for exactly the type of scalable, high-performance AI cloud capacity Nebius is building remains exceptionally strong and is broadening beyond traditional hyperscalers.
