Shares of Nebius ( NBIS ) rose on Wednesday after Nvidia ( NVDA ) announced a $2 billion strategic investment in the artificial intelligence (AI) cloud provider. The post-announcement surge helped NBIS break its key moving averages (20-day and 100-day) today, signaling the potential start of a strong uptrend.
Compared to its year-to-date low, Nebius stock is now up about 50%, but there’s reason to believe it will rise even further from here during the year.
Nvidia’s $2 billion investment is more than just a capital infusion, it’s a deep engineering alliance that cements Nabios as an “autonomous AI” partner.
Under the deal, the artificial intelligence infrastructure company will get early access to NVDA’s next-generation Rubin platforms, its Vera CPUs, and BlueField storage. This will enable Nebius to fulfill its commitment to deploy more than 5 gigawatts of capacity by 2030, putting it in direct competition with legacy hyperscalers.
The announcement bodes well for NBIS stock as it confirms the company’s AI-core architecture, which is specifically built for the high-intensity computing demands of agentic AI and large-scale model inference.
Beyond its Nvidia title, the fundamental bull case for Nebius shares is bolstered by the company’s rapid physical expansion and massive excess demand.
NBIS recently received approval for a 1.2 gigawatt AI plant in Missouri, part of a global footprint that is expected to reach 16 sites by the end of the year.
This year’s revenue is estimated to be more than 6x to $3.45 billion, with analysts eyeing a $9 billion run rate as the company’s size.
Sure, the valuation remains a premium at 45x sales, but the combination of triple-digit growth, strategic hardware advantages, and a clear regulatory path make Nebius an attractive investment for long-term investors.
Wall Street analysts remain positive on Nebius Group, especially since its relative strength index (14-day) remains far from exhausted, moving upwards at around 60 signals.
The consensus rating on NBIS shares is at “Moderate Buy”, with an average target of around $154 indicating a potential upside of more than 40% from here.
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