CoreWeave Partners with Nebius, SMCI, and IREN in Convertible Securities Surge — Caution Advised for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Should l Buy NBIS?
Source: Benzinga
CoreWeave's Debt Offering: CoreWeave Inc announced a $2 billion private offering of convertible senior notes due 2031, leading to a significant drop in its stock price, highlighting concerns over the financing of the AI boom through debt.
Industry Trend: Other companies like Nebius Group, IREN Ltd, and Super Micro Computer have also raised substantial amounts through similar convertible debt offerings, indicating a trend in the AI infrastructure sector to finance growth through debt rather than equity.
Dilution Risks: The use of convertible notes allows companies to access capital with low interest rates and delayed dilution, but it poses risks of future share dilution for current shareholders when these notes convert to equity.
Market Sentiment: The market response to these financing strategies has been cautious, with investors focusing on potential future dilution rather than the immediate growth prospects, suggesting a more skeptical outlook on the sustainability of such funding methods.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NBIS is 164.20 USD with a low forecast of 130.00 USD and a high forecast of 211.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 86.100
Low
130.00
Averages
164.20
High
211.00
Current: 86.100
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Profitability: DigitalOcean's EBITDA profit margin is around 40%, demonstrating a good balance between spending and revenue, which instills confidence in investors despite competitive pressures in the AI market, ensuring profitability.
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