Nebius Group Shares Surge After NVIDIA Discloses 9.3% Stake

Shares of Nebius Group NV (NBIS) jumped more than 13% on Tuesday after a regulatory filing revealed that chipmaker NVIDIA (NVDA) has acquired a 9.3% passive stake in the AI cloud infrastructure company. The disclosure signals a significant vote of confidence from the world's leading GPU supplier in one of its major customers.

The Investment Details

According to a Schedule 13G filing made public after the market closed on Monday, NVIDIA now holds 22,256,412 shares of Nebius Group. The market responded swiftly to the news, with Nebius shares rising to $206.79 in Tuesday's trading session.

While the "passive" designation indicates NVIDIA does not intend to influence the company's management or board, the investment is interpreted by analysts as a strategic move. It aligns NVIDIA's financial interests with the success of a key partner in its downstream ecosystem, potentially securing Nebius's position as a preferred customer for high-demand GPUs like the Blackwell series.

Nebius's Market Position

Nebius operates as a pure-play AI cloud provider, renting out GPU-powered computing capacity to large enterprises for developing artificial intelligence workloads. The company's financial stability is underpinned by significant long-term commitments from major technology clients.

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Key financial highlights for Nebius include:

• Over $40 billion in contracted revenue from hyperscalers including Microsoft (MSFT) and Meta Platforms (META).
• A recently closed $775 million senior secured debt facility, backed by its deployed GPU infrastructure.
• A one-year stock return of over 294%, though the shares have shown significant volatility.

Outlook and Risks

The NVIDIA investment strengthens the bull case for Nebius, providing a powerful endorsement and suggesting a stable supply of critical hardware. The company's substantial contracted revenue provides a level of visibility that is rare among high-growth AI firms.

However, investors also face considerable risks. The stock trades at high valuation multiples, and analysts cited by Investing.com do not project profitability for the current fiscal year. The share price is notoriously volatile, with a 52-week range between $49.00 and $299.86, underscoring the high-risk, high-reward nature of the investment.