Nebius (NBIS) shares ripped higher on Wednesday after Nvidia (NVDA) announced a massive $2 billion strategic investment in the artificial intelligence (AI) cloud provider. The post-announcement surge helped NBIS breach its key moving averages (20-day and 100-day) today, signaling a possible start of a strong uptrend.
Versus its year-to-date low, Nebius stock is now up about 50%, but there’s reason to believe it will rally further from here as the year unfolds.
Nvidia’s $2 billion investment is more than just capital infusion, it’s a deep engineering alliance that cements Nebius as a premier “sovereign AI” partner.
Under the deal, the artificial intelligence infrastructure firm will gain early access to NVDA’s next-gen Rubin Platforms, its Vera CPUs, and BlueField storage. This will enable Nebius to deliver on its promise of deploying over 5 gigawatts of capacity by 2030, putting it in direct competition with legacy hyperscalers.
The announcement is bullish for NBIS stock as it validates the firm’s AI-native architecture, which is built specifically for high-intensity compute demands of agentic AI and large-scale model inference.
Beyond this Nvidia headline, the fundamental bull case for Nebius shares is anchored by the firm’s rapid physical expansion and massive demand surplus.
NBIS recently secured approval for a 1.2 gigawatt AI factory in Missouri, part of a global footprint expected to hit 16 sites by year-end.
With revenue projected to more than 6x this year to about $3.45 billion, analysts are eyeing a $9 billion run-rate as the company scales.
Sure, the valuation at about 45x sales remains premium, but the combination of triple-digit growth, strategic hardware advantages, and a clear regulatory path makes Nebius an exciting investment for long-term investors.
Wall Street analysts remain positive on Nebius Group, especially since its relative strength index (14-day) at about 60 signals upward momentum remains far from exhaustion.
The consensus rating on NBIS shares sits at a “Moderate Buy”, with the mean target of roughly $154 indicating potential upside of more than 40% from here.
