Increasing Demand for AI Computing Power Fuels Nebius Group (NBIS) Performance in Q2

1 month ago 8

Soumya Eswaran

Thu, July 16, 2026 astatine 10:24 AM CDT 3 min read

Fred Alger Management, an concern absorption company, released its "Alger Capital Appreciation Fund" second-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. US equities powerfully rebounded successful the 2nd quarter, with the S&P 500 Index rising 15.2%. Easing geopolitical tensions and technological advancements fueled marketplace optimism, propelling the Information Technology and Industrials sectors forward, portion Energy and Utilities lagged owed to falling lipid and state prices. Despite discussions connected AI disruption, opportunities are identified wrong sectors adopting the exertion arsenic it enters its agentic phase. The Alger Capital Appreciation Fund's Class A shares outperformed the Russell 1000 Growth Index successful the quarter, driven by beardown performances successful Information Technology and Communication Services, portion Industrials and Financials detracted from wide performance. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Alger Capital Appreciation Fund highlighted Nebius Group N.V. (NASDAQ:NBIS) arsenic a notable contributor. Nebius Group N.V. (NASDAQ:NBIS) is simply a exertion institution that focuses connected processing full-stack infrastructure to work the planetary AI industry. On July 15, 2026, Nebius Group N.V. (NASDAQ:NBIS) closed astatine $199.51 per share. One-month instrumentality of Nebius Group N.V. (NASDAQ:NBIS) was -30.41%, and its shares gained 271.60% implicit the past 52 weeks. Nebius Group N.V. (NASDAQ:NBIS) has a marketplace capitalization of $50.65 billion.

Alger Capital Appreciation Fund stated the pursuing regarding Nebius Group N.V. (NASDAQ:NBIS) successful its Q2 2026 capitalist update:

"Nebius Group N.V. (NASDAQ:NBIS) is simply a specialized AI infrastructure institution that provides a full-stack platform, including GPU-accelerated unreality computing, to assistance enterprises build, train, and deploy large-scale artificial quality models. The institution has positioned itself arsenic a starring next-generation unreality supplier purpose-built for instrumentality learning and high-performance computing workloads. We judge the company's entreaty is anchored by its vertically integrated approach, which combines proprietary information halfway plan with in-house bundle to present superior show and little operating costs compared to accepted GPU unreality providers. Shares contributed positively to show aft the institution reported better-than-expected revenues, driven by surging request for AI computing power. Nebius besides announced a 1.2 gigawatt information halfway field and closed a strategical acquisition that strengthened its exemplary optimization capabilities."

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