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How Investors May Respond To Nebius Group (NBIS) Multibillion-Dollar AI Cloud Deals With Microsoft And Meta

Simply Wall St · 01/05 20:16
  • Nebius Group recently secured AI infrastructure contracts worth about US$3.00 billion with Meta and more than US$17.40 billion with Microsoft, while rolling out its Nebius AI Cloud 3.1 platform integrating Nvidia Blackwell technology and enhanced enterprise features.
  • Together, these long-term hyperscale deals and early customer reservations for Nebius AI Cloud 3.1 underline how tightly Nebius is tying its growth prospects to large-scale, production-grade AI workloads.
  • Next, we’ll examine how these multi-billion-dollar Microsoft and Meta contracts could reshape Nebius Group’s existing investment narrative and risk profile.

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Nebius Group Investment Narrative Recap

Nebius is a pure play on large scale AI infrastructure, so shareholders need to believe hyperscale AI demand will keep filling new capacity as it comes online. The new multi‑billion‑dollar Microsoft and Meta deals directly reinforce that demand, but they also increase execution risk around data center buildouts and timing of “power on,” which management has said is the key short term catalyst and a major source of potential revenue volatility.

The launch of Nebius AI Cloud 3.1, built around Nvidia Blackwell Ultra and new governance and capacity tools, is especially relevant here because it links those big contracts to a more mature, full stack platform for production workloads. Early capacity reservations for 3.1 suggest customers are already aligning future projects with Nebius’s roadmap, which could make upcoming earnings updates around utilization and deployment timelines particularly important for investors tracking the story.

Yet against this backdrop of huge AI contracts, investors should be aware that any delay in bringing new GPU capacity live could...

Read the full narrative on Nebius Group (it's free!)

Nebius Group’s narrative projects $3.2 billion revenue and $428.7 million earnings by 2028.

Uncover how Nebius Group's forecasts yield a $159.29 fair value, a 77% upside to its current price.

Exploring Other Perspectives

NBIS 1-Year Stock Price Chart
NBIS 1-Year Stock Price Chart

Thirty one members of the Simply Wall St Community currently see Nebius’s fair value anywhere between US$15.07 and US$159.29, underlining how far apart individual views can be. You might weigh those wide ranges against the company’s heavy reliance on timely AI capacity deployment for revenue recognition and consider how different scenarios there could shape Nebius’s future performance before forming your own view.

Explore 31 other fair value estimates on Nebius Group - why the stock might be worth as much as 77% more than the current price!

Build Your Own Nebius Group Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.