Nebius Soars to New Highs on $27B Meta Pact and Nvidia's $2B Seal of Approval

Nebius Group surges as AI cloud revenue jumps 684%, lands $27B Meta contract and $2B Nvidia stake, targeting $25B investment and massive data center build-out.

The transformation from niche cloud provider to full-blown hyperscaler contender is happening at breakneck speed for Nebius Group. A string of blockbuster deals – a $27 billion Meta Platforms contract, a $2 billion equity infusion from Nvidia, and a plan to invest up to $25 billion this year – has sent the stock into record territory. Shares rocketed roughly 24% over the week, closing at $225, a level that left some analysts racing to update their price targets.

The financials underpinning the rally are equally dramatic. First-quarter revenue hit $399 million, a 684% surge from a year earlier, almost entirely driven by AI cloud services. Adjusted operating profit swung sharply to around $130 million – a stark reversal from the deep loss posted in the prior-year period. Yet the bottom line remains in the red: the adjusted net loss widened by a fifth to just over $100 million, reflecting the heavy investment cycle underway.

To fund that expansion, Nebius has loaded up its balance sheet. Nvidia took a direct $2 billion equity stake, and the company issued convertible bonds, swelling its cash reserves to $9.3 billion by the end of March. The capital is earmarked for a sprawling infrastructure build-out that calls for at least four gigawatts of contracted power capacity by year-end. Construction is already under way on two massive AI data centers – one in Pennsylvania and another in Missouri – with the 1.2-gigawatt Pennsylvania project seen as a key test of the company's ability to convert dollars into computing power in the second half of the year.

The Meta contract, structured as a mix of firm offtake and flexible capacity agreements, secures as much as $27 billion in revenue over five years. That deal, combined with the Nvidia endorsement, validates Nebius’s strategy of becoming a direct rival to the established hyperscalers. The annualized recurring revenue from its cloud segment has already reached $1.9 billion, and management expects that figure to accelerate sharply through 2026.

Analyst reactions underscore the speed of the rerating. Citigroup lifted its price target to $287, while houses such as Citizens and Northland also raised their estimates sharply. Morgan Stanley took a more cautious stance, hiking its target to $144 while maintaining a neutral rating – a level that sits well below the current share price. The wide dispersion highlights the risk premia embedded in the stock; the market is pricing in a successful transition, leaving little room for execution stumbles.

For now, the momentum is squarely in Nebius’s favour. The combination of marquee customers, deep-pocketed partners, and a willingness to spend aggressively on capacity has turned the company into one of the most high-stakes stories in the AI infrastructure space. The next big milestone – the Pennsylvania data centre – will test whether Nebius can deliver on its promises and keep the rally alive.