Nebius Group N.V. (NASDAQ: NBIS) surged this week after announcing a $17.4 billion, five-year deal with Microsoft (NASDAQ: MSFT) to provide GPU-based AI infrastructure. The contract could expand to $19.4 billion, depending on future capacity requirements.
Under the agreement, Nebius will supply dedicated GPU resources from a new data center in Vineland, New Jersey, with services set to begin later this year. Originally the international arm of Russia’s Yandex, Nebius has been restructured and is now headquartered in Amsterdam.
Market Reaction
Shares of Nebius skyrocketed by 47% to 55%, reaching an intraday high near $99.20. The move added an estimated $7.7 billion to its market value, reflecting strong investor enthusiasm for its AI-cloud expansion.
Microsoft stock remained stable, trading around $498, underscoring the relative scale difference between the two companies.
Strategic Significance
Nebius’s agreement with Microsoft secures a long-term partnership with a major technology leader, providing a strong revenue stream to finance its U.S. data center expansion while positioning the company as a key player in the fast-growing AI infrastructure market, where demand for GPU-powered capacity is accelerating and competitors such as CoreWeave and Cipher Mining are also racing to scale.
Analyst Outlook
Analysts maintain a bullish stance, citing Nebius’s strengthened position in the AI supply chain. Some price targets suggest room for further upside, though high valuations raise questions about sustainability if execution falters.
Conclusion
The Microsoft deal marks a turning point for Nebius, positioning it as a significant global AI infrastructure provider. Execution of its New Jersey data center and ability to scale efficiently will determine whether the stock’s sharp rally can translate into lasting growth.