Nebius Group Secures $19.4 Billion Microsoft Deal Amid AI Demand Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Surging Market Demand: Nebius Group reported triple-digit revenue growth in the recent quarter, indicating that demand for its AI cloud services significantly exceeds supply, highlighting its strong position in the rapidly growing AI market.
- Infrastructure Expansion Plans: To meet the escalating demand, Nebius plans to aggressively ramp up its infrastructure through over $4 billion raised via convertible notes and a follow-on equity offering, ensuring its competitiveness in the AI services market.
- Major Client Partnerships: Nebius secured a deal with Microsoft valued at up to $19.4 billion for AI infrastructure, becoming its first major infrastructure partner, which further solidifies its leadership position in the industry.
- Meta Platform Collaboration: Nebius also signed a $3 billion deal with Meta for AI infrastructure, although the size of the deal was limited by Nebius's available capacity, still demonstrating its strong market appeal.
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: 99.290
Low
130.00
Averages
164.20
High
211.00
Current: 99.290
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.
