A pair of blockbuster strategic alliances has catapulted Nebius into a new orbit. Meta Platforms committed to $27 billion in artificial-intelligence computing capacity over five years, while Nvidia invested $2 billion directly into the company’s equity. The twin announcements sent shares surging more than 20% on the week, with the stock closing at roughly $220 on Friday after touching an intraday all-time high the previous session. Trading volume was exceptional — more than 22 million shares changed hands on Friday alone.
The deals come on the heels of Nebius’ first-quarter earnings report, which already had investors buzzing. Revenue exploded 684% to $399 million, powered by the company’s AI cloud segment. Annualized recurring revenue from that business reached $1.9 billion, and management expects the pace to accelerate further through 2026. The numbers validated Nebius’ aggressive push from a niche player toward full-fledged hyperscaler status — a transition the market is now pricing in with gusto.
To meet that surging demand, Nebius is pouring capital into physical infrastructure at an unprecedented rate. The company has broken ground on two massive AI data-center campuses: one in Missouri and another in Pennsylvania, where it secured land and power for up to 1.2 gigawatts of capacity. As a result, the board lifted its 2025 capital-expenditure target to $25 billion from a previous ceiling of $20 billion. By the end of 2026, Nebius expects its contracted power capacity to surpass four gigawatts. The balance sheet supports the ambition: the company ended the first quarter with more than $9 billion in cash.
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Wall Street’s reaction was swift and bullish. Citigroup analyst Tyler Radke, who reiterated a buy rating, raised his price target to $287, calling management’s strategy “disciplined.” DA Davidson followed suit, lifting its target to $250. Other firms, including Citizens and Northland, also boosted their estimates during the week. Notably, Nebius chose to keep its full-year guidance unchanged despite the blowout quarter — a move Radke described as deliberately conservative, leaving room for upside surprises later in the year.
The euphoria was barely dented by an insider transaction midweek. Infrastructure chief Andrey Korolenko exercised stock options and then sold a large block of shares through a pre-arranged trading plan, netting an average price of $203 per share. He still holds more than one million shares, and the sale was viewed by analysts as routine rather than a signal of fading conviction.
The market’s attention now shifts to execution. The Pennsylvania site is not expected to come online until 2027, making progress on that construction project the next major milestone. How quickly Nebius converts its $27 billion Meta contract and other pending orders into operational computing capacity will determine whether the stock’s recent rally can be sustained — and whether the company can cement its place among the elite providers of AI infrastructure.
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