CoreWeave Partners with Nebius, SMCI, and IREN in Convertible Securities Surge — Caution Advised for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Updated: 2 day ago0mins
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.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 96.410
Low
130.00
Averages
164.20
High
211.00
Current: 96.410
Low
130.00
Averages
164.20
High
211.00
Citizens JMP
Outperform
initiated
$175
2025-11-19
Reason
Citizens JMP
Price Target
$175
2025-11-19
initiated
Outperform
Reason
Citizens JMP initiated coverage of Nebius with an Outperform rating and $175 price target. The firm launched coverage of five companies previously in bitcoin mining, saying they provide "critically-scarce" power supply for high performance compute and artificial intelligence. The deployment of graphics processing unit clusters represents an opportunity to "unlock significant value," the analyst tells investors in a research note. Citizens sees strong pricing trends with a continued supply/demand imbalance for the group.
Northland
Outperform
maintain
$206 -> $211
2025-11-12
Reason
Northland
Price Target
$206 -> $211
2025-11-12
maintain
Outperform
Reason
Northland raised the firm's price target on Nebius to $211 from $206 and keeps an Outperform rating on the shares. The company's "impressive" reliability stats are likely an under-appreciated driver of "sold out" capacity for the September and December quarters, according to the analyst, who adds that the firm's data points give its confidence in the effective incremental 38-55 MW of active power guided for the December quarter and 1.5 GW increase of contracted power by year-end 2026.
CICC
initiated
$143
2025-11-10
Reason
CICC
Price Target
$143
2025-11-10
initiated
Reason
CICC initiated coverage of Nebius with an Outperform rating and $143 price target.
Seaport Research
analyst
Neutral
initiated
2025-09-15
Reason
Seaport Research
analyst
Price Target
2025-09-15
initiated
Neutral
Reason
Seaport Research initiated coverage of Nebius with a Neutral rating. In the near term, the neocloud space will benefit from strong demand from hyperscalers for extra GPU and electricity capacity, but business models will matter as the space consolidates over the longer term, the analyst tells investors.
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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
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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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