Nebius Group stock surged 34% on August 12 after the company posted its second-quarter results. Revenue hit $582.3 million, up 454% year-over-year and above analyst estimates of $572.75 million.
The blowout quarter did not change Michael Burry’s mind. The Scion Asset Management founder, known for predicting the 2008 housing collapse, added to his short position on the same day results dropped.
Burry had first disclosed his short on August 6 at around $212 per share. With the stock closing near $259 on August 12, his position is currently underwater.
Nebius, an Nvidia-powered AI cloud provider spun out of Russian internet company Yandex and now based in Amsterdam, posted AI cloud revenue of $575 million, up 514% year-over-year.
The company closed four contracts in the quarter, each averaging more than $1 billion in total contract value. New customer contract value grew more than nine times compared to the prior quarter.
Nebius ended June with $8 billion in cash and generated $2.2 billion in operating cash flow. Capital expenditures came in at $5.7 billion, above analyst estimates of $4.7 billion.
CEO Arkady Volozh said in the shareholder letter: “We could sell our entire 2027 capacity on these terms today.”
The company also raised its 2026 contracted power target to 5 gigawatts, up from 4 gigawatts.
Burry’s short thesis is not about whether demand is real. His argument focuses on how AI infrastructure companies account for depreciation.
He contends these companies stretch the assumed useful life of chips that realistically cycle every two to three years, which he says overstates profits.
Nebius extended its server depreciation life from four years to five years at the start of 2026. Burry has pointed to this kind of move as exactly what flatters earnings across the sector.
Depreciation and amortization at Nebius came in at $259.7 million in Q2, equal to 45% of revenue. On a GAAP basis, the company lost $190.4 million in the quarter.
Burry also raised short positions in Micron and Oracle on August 12. He holds shorts in Nvidia, Palantir, Applied Materials, and Caterpillar.
CoreWeave rose more than 19% on August 12 after raising its annual forecasts, adding to the AI infrastructure rally.
At around $259, Nebius trades at roughly 20 times this year’s guided revenue of $3.0 billion to $3.4 billion. The company also sold 12.7 million shares through June 30 at an average price of $223.60.
The near-term test is whether pricing holds. Nebius signed its first short-term capacity deal in early Q3 at $40 to $50 million per megawatt.
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