Nebius Group Secures $19.4 Billion Deal with Microsoft, Accelerating AI Infrastructure Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Nebius Group reported third-quarter revenue of $146.1 million, a 355% increase year-over-year, indicating strong market demand and rapid expansion potential despite ongoing losses.
- Strategic Partnership Agreement: The five-year, $19.4 billion deal with Microsoft ensures dedicated GPU capacity supply, further solidifying Nebius's market position in the AI infrastructure sector.
- Future Growth Expectations: Nebius is projected to connect 220 megawatts of power for its data centers by the end of 2025, with plans to increase that to between 800 megawatts and 1 gigawatt by the end of 2026, showcasing its ambitious expansion capabilities.
- Strong Financial Backing for Expansion: With $4.8 billion in cash and cash equivalents at the end of the third quarter, Nebius has the financial resources necessary to support its future expansion and infrastructure investments.
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: 108.730
Low
130.00
Averages
164.20
High
211.00
Current: 108.730
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.
