Nebius Group Reports Major AI Cloud Infrastructure Deals
Nebius Group (NASDAQ: NBIS) announced two significant agreements in September and November 2023 with major hyperscalers, Microsoft and Meta Platforms, valued at $19.4 billion and $3 billion, respectively. These deals contributed to a 202.2% surge in Nebius’ stock for the year, reflecting heightened investor interest and a sellout of available data center capacity. The company reported sales of $105 million in Q2 2023 and anticipates a revenue run rate of up to $1.1 billion by the end of 2025, projecting growth to between $7 billion and $9 billion this year.
Nebius operates primarily in AI cloud infrastructure while also exploring related business segments, including AI data services, educational technology, and autonomous vehicles. With management’s guidance suggesting an annual revenue run rate of $8 billion by the end of 2026, there are high expectations for the company to capitalize on the increasing demand for AI cloud services. However, investors are cautioned that any operational setbacks could significantly impact the stock’s performance.
