Nebius Group Secures $3 Billion Meta Deal as AI Infrastructure Demand Outpaces Supply

What's Going On With Nebius Stock Wednesday? - Nebius Group (NASDAQ:NBIS)

Nebius Group N.V. (NASDAQ:NBIS) is accelerating its global data center expansion, unveiling plans to more than double capacity by 2026 as surging demand for AI compute drives a dramatic step-change in growth. D.A. Davidson analyst Alexander Platt reiterated Buy rating and $150 price forecast on Nebius Group after the company delivered strong results. The firm highlighted a step-function increase in Nebius' data center capacity, with management now projecting contracted power of 2.5GW by the end of 2026 and an annualized revenue run-rate of $7-9 billion. Also Read: Nebius CEO Says 'We Sold Out Everything We Built' As NBIS Plans Expansion Across Israel, UK, More The analyst noted that demand for compute capacity remains elevated across GPU generations and global regions, positioning Nebius for continued expansion through fiscal 2026. Revenue rose 237% year over year to $146.1 million, reflecting the strength of the company's core AI compute business. Alongside a previously disclosed contract with Microsoft Corporation (NASDAQ:MSFT), Nebius also announced a $3 billion, five-year deal with Meta Platforms, Inc. (NASDAQ:META). The agreement was reportedly constrained by current compute availability, with additional capacity for Meta expected to ramp up this quarter and reach full utilization by the first quarter of 2026. Microsoft's allocation is expected to reach full capacity by the fourth quarter of 2026, with most of the growth back-end loaded into next year. Nebius' updated guidance, including 2.5GW of contracted power and up to 1GW of connected power by the end of 2026, suggests prior expectations of 1GW were conservative, D.A. Davidson said. Assuming favorable market conditions, the firm sees potential medium-term revenue exceeding $20 billion. The analyst believes additional capacity, an incremental 400MW, could be achieved via expansion at the New Jersey site, which can support up to 1GW, also expects the company to secure two more mega-deals, potentially an expansion of the Meta contract and a new hyperscaler agreement, each roughly the size of the Microsoft deal. D.A. Davidson said Nebius is positioned to generate double-digit returns on capital, citing its use of an ODM (original design manufacturer) model for NVIDIA Corporation (NASDAQ:NVDA) racks, which reduces compute costs by 15-20% compared with OEM alternatives. Compute hardware accounts for roughly 80% of total capital expenditures. Combined with operational efficiencies in data center management, this structure could yield significantly higher returns than peers such as CoreWeave, Inc. (NASDAQ:CRWV), which currently posts a 4% return on capital. D.A. Davidson reaffirmed its Buy rating and $150 price forecast on Nebius Group, valuing the stock at 7x projected 2026 revenue. The firm called Nebius one of its top AI picks and its favorite neocloud player. Nebius Group's financial outlook points to explosive growth, with revenue projected to surge from $571.8 million in 2025 to $5.38 billion in 2026. The company is also expected to swing to profitability, with GAAP earnings per share rising from $1.00 in 2025 to $6.11 in 2026. Price Action: NBIS shares were trading lower by 8.23% to $93.81 at last check Wednesday. Photo by Piotr Swat via Shutterstock NBISNebius Group NV $93.48-8.55% Overview CRWVCoreWeave Inc $87.32-1.21% METAMeta Platforms Inc $614.07-2.07% MSFTMicrosoft Corp $505.45-0.63% NVDANVIDIA Corp $192.57-0.31% Market News and Data brought to you by Benzinga APIs

This Is 1 of the Best AI Stocks: It Could Surge 641% by 2030

Consider picking a small stake in this early stage AI infrastructure player now. Shares of artificial intelligence (AI)-optimized cloud infrastructure provider Nebius Group (NBIS +2.98%) have gained over 269% so far in 2025. The company is growing at a dramatic pace, driven by multibillion-dollar capacity contracts with multiple technology giants, presold data center capacity, and a focused software optimization strategy. Although the data center capacity is currently constrained, Nebius' aggressive expansion plans can make it a significant beneficiary of the ongoing AI boom by 2030. Data center capacity In the third quarter of fiscal 2025 (ending Sept. 30), Nebius' revenues were up 355% year over year to $146 million. The company's core data center infrastructure business grew 400% year over year, accounting for nearly 90% of total revenues. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of this infrastructure business was 19%. With demand far outpacing supply, Nebius sold out all available core GPU compute capacity. The company also reported a 70% quarter-over-quarter jump in pipeline deal value to $4 billion. However, the company is only able to translate a portion of this pipeline to revenues due to constrained capacity. Nebius is focused on resolving this challenge. The company aims to achieve 2.5 gigawatts of contracted power and 800 megawatts to 1 gigawatt of connected power (active power and power that can be activated immediately after GPU installations in data centers) by the end of 2026. Nebius is also seeing strong demand in international markets and has already sold capacity in new data centers in Israel and the United Kingdom. The demand for cloud infrastructure based on both Nvidia's Hopper GPUs and Blackwell GPUs is robust. Clients are also interested in purchasing Blackwell-based data center capacity in advance and then securing it over a more extended time frame. Subsequently, the company has also presold a major part of its 2026 capacity. Partnerships Nebius has entered into a multibillion-dollar partnership with Microsoft to supply capacity from its Vineland data center, starting late 2025. While the deal is currently valued at $17.4 billion, the contract value could increase to $19.4 billion if Microsoft purchases additional services capacity from Nebius. The company has also signed a $3 billion, five-year capacity supply deal with Meta Platforms and expects to complete deployments by the end of 2025. These partnerships have dramatically improved Nebius' future revenue visibility and positioned the company as a key player in the AI infrastructure space. Software stack Going beyond compute capacity, Nebius is also working to position itself as a full-stack AI cloud provider. The company has launched its third version of the AI cloud platform called Aether. It enables enterprises to run critical AI workloads while meeting security, compliance, and observability standards. The company has also launched a production-scale inference-as-a-service platform called Nebius Token Factory, designed for AI product builders, enterprises, and software vendors to deploy open-source models with guaranteed uptime and predictable pricing. Financials and valuation Nebius is guiding for fiscal 2025 revenues of $500 million to $550 million, a tighter range compared to the previous estimate of $430 million to $630 million. The company also expects to reach an annual run rate (ARR) of $900 million to $1.1 billion by the end of 2025. For 2026, the company is guiding for ARR of $7 billion to $9 billion, of which over 50% is already booked. This steep ARR growth is driven by surging demand for AI compute and accelerated expansion plans for data centers. Analysts expect Nebius' revenues to be nearly $578.2 million in fiscal 2025 and $1.68 billion in fiscal 2026. While the fiscal 2025 figure aligns closely with management guidance, the fiscal 2026 estimate seems too conservative. Nebius' own fiscal 2026 ARR target of $7 billion to $9 billion already translates into $1.75 billion to $2.25 billion of quarterly revenues. In that context, the analysts' 2030 revenue projection of $21.7 billion appears modest and achievable if the company maintains its momentum. Currently, Nebius trades at a lofty valuation of 106.1 times sales, which is typical for an early-stage technology company delivering exceptional top-line growth. As the revenue base expands and growth rate normalizes, we can also expect a contraction in valuation multiples. We can assume the price-to-sales (P/S) multiple compresses to a more reasonable 7x and 10x range by 2030, more in line with the average P/S multiple of a data center real-estate investment trust (REIT) of around 10.14x. Hence, the company's market capitalization can increase to the range of $151.9 billion to $217 billion. This is almost 641% to 916% higher compared to its current market capitalization (as of Nov. 13). Nebius faces significant execution, financing, and competitive risks, which may negatively affect these projections. Hence, investors can opt for a dollar-cost averaging strategy to participate in the potential upside of this stock while controlling the downside risk.

Nebius CEO Says 'We Sold Out Everything We Built' As NBIS Plans Expansion Across Israel, UK, More - Nebius Group (NASDAQ:NBIS)

AI infrastructure company, Nebius Group NV (NASDAQ:NBIS), has fully sold out all available capacity, with CEO Arkady Volozh confirming the company's AI infrastructure buildouts are consistently absorbed by overwhelming demand. Company Plans Renewed Capex To Keep Up With Demand During the company's third-quarter earnings call on Tuesday, Volozh said, "Every time we bring capacity online, we sell all of it," while adding, "If we had more capacity, we could have sold more," underscoring the sheer scale of demand for AI compute. "Capacity today is the main bottleneck to revenue growth, and we are now working to remove this bottleneck," he said, before outlining the company's efforts to scale up its capacity. See Also: Stock Of The Day: Where Is The Bottom For Nebius? As part of its expansion strategy, the company is launching new data centers across multiple global sites, naming Israel and the U.K. as a few regions where it has capacity coming online soon, alongside one facility in New Jersey. Volozh noted yet again that "all the capacity in those regions were pre-sold before the launch." The company's Chief Revenue Officer, Marc Boroditsky, reiterated the same, saying, "Even before going live, we're pretty much sold out." He added that of the $4 billion in orders that the company added to its pipeline during the quarter, "we were only able to convert a portion of that, given the constraints of our capacity." "Everything we built was ultimately sold," Volozh emphasized. "In theory, we should try to build as much as we can." Stock Surges Following The Results The company released its third-quarter results on Tuesday, reporting $146.1 million in revenue, up 355% year-over-year, but falling short of consensus estimates of $155.11 million. It posted a loss of 40 cents per share, beating analyst projections for a loss of 49 cents per share. Nebius shares were down 7.73% on Tuesday, closing at $102.22, but are up 1.56% overnight, after the company announced a new $3 billion deal over five years with Meta Platforms Inc. (NASDAQ:META), adding to the spike in the stock. The stock scores high on Momentum in Benzinga's Edge Stock Rankings, with a favorable price trend in the medium and long terms. Click here for deeper insights into the stock, its peers and competitors. Read More: Why Nebius Is 'Learning To Say No To Customers' Photo courtesy: Shutterstock NBISNebius Group NV$103.751.50%OverviewMETAMeta Platforms Inc$629.140.33%Market News and Data brought to you by Benzinga APIs

Nebius Set To Join Meta, Oracle In The AI Debt Club - Nebius Group (NASDAQ:NBIS)

The AI boom isn't just reshaping technology -- it's rewriting corporate balance sheets. After another quarter of breakneck growth, Nebius Group NV (NASDAQ:NBIS) signaled that the next phase of its expansion will be powered not by GPUs, but by debt. "We're actively evaluating asset-backed financing, corporate-level debt, and equity financing," CFO Dado Alonso told investors on the third quarter earnings call, adding bluntly that "funding our growth will require raising a significant amount of capital." Track NBIS stock here. That puts Nebius on the same path as Meta Platforms Inc (NASDAQ:META) and Oracle Corp (NYSE:ORCL), two Big Tech giants whose multi-billion-dollar AI buildouts are increasingly financed through bond markets. As AI infrastructure companies scale at five times annual growth, free cash flow isn't enough -- credit is becoming the new compute. Read Also: Nebius Vs. Palantir: The AI Infrastructure War At 100x Sales When AI Growth Outgrows Equity Nebius' problem is one most startups dream of: it has sold out of capacity and can't build fast enough. Its plan to reach 2.5 gigawatts of contracted power by 2026 will require billions in upfront spending -- the kind that even equity markets can't absorb endlessly. Nvidia Corp (NASDAQ:NVDA), meanwhile, is positioning itself as AI's unofficial banker, having backed more than $100 billion in compute-linked projects from partners like CoreWeave Inc (NASDAQ:CRWV) and OpenAI. It's a self-sustaining ecosystem: chipmakers finance data centers that buy more chips, while investors chase yield in AI-backed debt. The New AI Asset Class According to JPMorgan, AI and data center issuers could make up more than 20% of the global investment-grade bond market by 2030. For now, Nebius is simply the latest to admit what everyone in the sector already knows -- the future of AI might be as much about credit spreads as compute speed. In other words, the next AI arms race isn't just about who has the most GPUs; it's about who can borrow best to buy them. Read Next: Amazon's $150 Billion AI Capex Surge Could Force Its First Big Bond Deal In Years Photo: Shutterstock NBISNebius Group NV$104.04-5.38%OverviewCRWVCoreWeave Inc$89.78-15.0%METAMeta Platforms Inc$624.20-1.20%NVDANVIDIA Corp$194.18-2.45%ORCLOracle Corp$235.37-2.27%Market News and Data brought to you by Benzinga APIs

Nebius Reports Q3 Earnings, Announces $3 Billion AI Infrastructure Deal With Meta, Shares Climb - Nebius Group (NASDAQ:NBIS)

Nebius Group N.V. (NASDAQ:NBIS) reported financial results for the third quarter before the market open on Thursday. Here's a look at the key highlights from the report. * NBIS shares are powering higher on strong volume. View the charts here. Q3 Earnings: Nebius Group reported third-quarter revenue of $146.1 million, missing analyst estimates of $155.11 million, according to Benzinga Pro. The AI infrastructure company reported a third-quarter adjusted loss of 40 cents per share, beating estimates for a loss of 49 cents per share. Total revenue was up 355% on a year-over-year basis as the company said it sold out of available capacity in the quarter, reflecting strong momentum. Nebius also announced a new agreement to deliver AI infrastructure to Meta valued at approximately $3 billion over five years. "We are at the forefront of one of the most significant technological revolutions in history -- and Nebius has quickly become a core enabler of the AI-driven economy," said Arkady Volozh, founder and CEO of Nebius. "2025 has been a building year as we put in place the infrastructure and framework for future rapid growth. This year, we believe that we have successfully laid the foundations for an outstanding 2026 -- a year that should firmly position us among the top AI cloud businesses globally. And at the same time, 2026 is still just the beginning." In connection with earnings, Nebius announced an at-the-market equity program for up to 25 million shares. The company ended the quarter with approximately $2.43 billion in cash in cash equivalents. Nebius said it expects annualized run-rate revenue of $7 billion to $9 billion at year-end 2026. The company also noted that it's currently in the process of securing additional sites that would bring its total contracted power to approximately 2.5GW by the end of 2026. NBIS Price Action: Nebius Group shares were up 3.61% at $113.92 at the time of publication on Tuesday, according to Benzinga Pro. Image: Shutterstock.com NBISNebius Group NV $113.002.77% Overview Market News and Data brought to you by Benzinga APIs

Earnings Flash (NBIS) Nebius Group N.V. Reports Q3 Revenue $146.1M, vs. FactSet Est of $155.1M

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.