Nebius Stock Jumps on $27B Meta AI Infrastructure Agreement

Nebius Group N.V.NBIS has signed a long-term AI infrastructure supply agreement with Meta Platforms, Inc.META, further deepening their partnership. Under the five-year deal, Nebius will deliver $12 billion worth of dedicated AI compute capacity across multiple locations, powered by one of the first large-scale deployments of NVIDIA Corporation’s NVDA Vera Rubin platform, with deliveries set to begin in early 2027.

Reflecting these positive developments, shares of Nebius surged 15% in the trading session yesterday. Shares of Nebius have gained 37.9% in the past six months, outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry’s decline of 0.1% and 13.7%, respectively.

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News in Detail

As part of the agreement, Meta has committed to purchasing up to $15 billion of additional compute capacity from select Nebius clusters over the same period, supplementing demand beyond third-party customers. Altogether, the agreement represents a potential total contract value of approximately $27 billion.

Management stated that the expansion of Nebius’ partnership with Meta reflects its ongoing efforts to secure large, long-term capacity agreements aimed at accelerating the build-out and growth of its core AI cloud business, while reaffirming its commitment to continued execution and delivery.

In a separate press release, Nebius also announced a collaboration with NVIDIA to accelerate physical AI development through a fully integrated, end-to-end platform designed for the entire robotics lifecycle, from simulation and training to real-world deployment. By combining Nebius’ AI cloud infrastructure with NVIDIA’s Physical AI Data Factory Blueprint, the partnership aims to address key industry challenges such as fragmented infrastructure and the lack of high-quality training data for complex, real-world scenarios. The platform integrates large-scale GPU training, simulation and edge deployment into a unified system, leveraging technologies like NVIDIA OSMO for orchestration and Cosmos foundation models for generating physics-based synthetic data.

Running on Nebius AI Cloud with advanced GPUs and managed services, the solution enables developers to streamline workflows, reduce integration time and scale deployment efficiently. Early adopters such as RoboForce have already reported significant improvements, including a more than 70% reduction in pipeline setup time and faster deployment of AI-driven robotics solutions.

Nebius Group N.V. Price and Consensus

Nebius Group N.V. price-consensus-chart | Nebius Group N.V. Quote

Nebius continues to see robust demand across large accounts, hyperscalers, AI start-ups and enterprise customers. AI-native companies are scaling rapidly, with customers increasing GPU usage from hundreds and thousands to tens of thousands. Demand continued to exceed supply, with the company once again selling out its capacity in the fourth quarter, while operating leverage and cost management supported improved profitability.

Nebius’ growth is supported by expansion of its AI cloud platform, new offerings and acquisitions, along with strong monetization and flexible financing options. The company also remains on track with its commitment to Microsoft, with full revenue contribution expected from 2027 after capacity deployment is completed.

Overall, the AI cloud infrastructure space remains highly competitive, with Nebius facing pressure from both emerging pure-play players like CoreWeave, Inc. CRWV as well as established hyperscalers and technology giants.

CoreWeave has emerged as one of the most important GPU cloud providers for AI workloads. CRWV is benefiting from strong demand for its AI cloud, a rapidly expanding backlog and a growing, diversified customer base.

At present, NBIS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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