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Nebius Group Expands Cloud Infrastructure
Nebius Group (NASDAQ: NBIS) plans to expand its cloud infrastructure capacity to 1 gigawatt by 2026. Currently, its data centers use approximately 220 megawatts of power and are involved in new projects in New Jersey, the U.K., Israel, and Finland. The company has a substantial agreement with Microsoft, which values up to $19.4 billion, to provide dedicated GPU capacity to Azure.
To support this expansion, Nebius announced a new fundraising initiative totaling $3 billion, comprising a $2 billion private offering of convertible senior notes and a $1 billion public offering of common stock. The company reported a net loss of $91.5 million in Q2, although revenue surged to $105.1 million, up 625% year-over-year, increasing its 2023 revenue forecast to $900 million to $1.1 billion.
Despite a year-to-date stock gain of over 300%, shares recently fell nearly 20% from their all-time high, reflecting concerns over a potential AI market bubble. Analysts project a 12-month price target of $156.40 for Nebius stock, indicating a potential upside of about 40% from current trading levels.
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