Nebius Stock Jumps After-Hours on Nvidia Stake Disclosure

Shares of Nebius Group NV (NBIS) gained 2.9% in after-hours trading on Monday following a regulatory filing that revealed Nvidia Corp. (NVDA) has taken a significant stake in the neocloud company.

Nvidia Reveals 9.3% Stake

Nvidia disclosed a 9.3% passive stake in Nebius, which amounts to approximately 22.26 million shares, according to the filing. The holding includes shares obtained from a warrant that was part of Nvidia's previous $2 billion investment in the firm. The disclosure from the artificial intelligence chip leader is being widely interpreted by investors as a strong vote of confidence in Nebius's technology and market position.

Analyst Upgrade and Market Context

The news followed a positive analyst action earlier in the day. Freedom Capital upgraded Nebius stock to Buy from Hold, increasing its price target to $200 from a previous $159. The investment firm's valuation was based on a multiple of 4 to 6 times the company's projected 2028 EV/EBITDA, a range consistent with peers in the neocloud sector.

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These company-specific catalysts provided a notable lift for Nebius, especially as the stock had recently retreated from its 52-week high of $299.86. The gains occurred despite a negative trend in the broader market, with the S&P 500 finishing lower on Monday.

Financial Health and Revenue Backlog

Underpinning the bullish sentiment, Nebius recently secured a $775 million senior secured debt facility. The financing, backed by its GPU infrastructure and contracted cash flows, has helped alleviate investor concerns about potential equity dilution. Furthermore, the company boasts a contracted revenue backlog exceeding $40 billion, anchored by significant, long-term agreements with major technology clients including Microsoft and Meta, signaling durable future demand.