TLDR
- Nebius (NBIS) climbed approximately 15% Monday following confirmation of a $27 billion AI infrastructure agreement with Meta Platforms
- The agreement includes $12 billion in guaranteed capacity spanning five years, alongside $15 billion in supplementary compute linked to NVIDIA Vera Rubin installations
- Shares declined roughly 8.9% Tuesday when the company revealed plans for a $3.75 billion convertible bond issuance to finance data-center construction
- CrowdStrike (CRWD) formed an alliance with Nebius to embed its Falcon cybersecurity solution within Nebius AI Cloud infrastructure
- Citi began coverage of NBIS with a Buy recommendation and set a $169 price objective, though designated it as “High Risk”
Nebius Group experienced significant volatility across two trading sessions. The AI cloud provider surged almost 15% Monday before surrendering a meaningful portion of those gains Tuesday — while simultaneously securing a prominent cybersecurity collaboration and receiving new Wall Street coverage.
Monday’s advance stemmed from a substantial agreement with Meta Platforms. Nebius confirmed it will provide $12 billion in dedicated computing capacity to Meta across the coming five years, with initial delivery scheduled for early 2026. Meta further pledged to acquire an extra $15 billion in computing capacity connected to Nebius’s forthcoming NVIDIA Vera Rubin installations — creating a combined $27 billion arrangement.
“We are pleased to expand our partnership with Meta as part of securing more large, long-term capacity contracts,” said Nebius CEO Arkady Volozh.
The Meta announcement followed another significant development: a collaboration with NVIDIA revealed the previous week, accompanied by a $2 billion capital injection from the semiconductor manufacturer. That arrangement involves joint creation of advanced hyperscale cloud infrastructure designed for AI applications.
Convertible Bond Offering Spooks Investors
Sentiment changed Tuesday. Nebius unveiled intentions to secure $3.75 billion via convertible notes — two tranches maturing in 2031 and 2033 — to finance its data-center build-out. Shares fell approximately 8.5% to $118.60 as market participants expressed concerns about possible dilution should bondholders exercise conversion rights.
Nebius aims for 5 gigawatts of AI power capacity by 2030, expanding from merely 170 megawatts of operational power last year. This expansion would position the company at approximately 5% of what Citi forecasts as a 110-gigawatt worldwide AI data-center landscape.
Despite Tuesday’s decline, Citi launched coverage of NBIS with a Buy recommendation and established a $169 price objective. Analyst Tyler Radke emphasized Nebius’s combination of data centers, proprietary hardware, and developing cloud software as a competitive advantage in the neocloud sector.
Radke acknowledged potential challenges. Nebius only started trading as a standalone entity in 2024 following its separation from Yandex’s non-Russian operations. Meta and Microsoft collectively represent around 40% of anticipated 2026 recurring revenue — a substantial concentration. Citi formally designates the stock as “High Risk.”
“NBIS is positioned to gain share within an AI compute market that itself is more than doubling every two years,” Radke said.
CrowdStrike Brings Falcon to Nebius AI Cloud
Simultaneously, CrowdStrike disclosed a partnership with Nebius to incorporate its Falcon cybersecurity platform into Nebius AI Cloud infrastructure. The arrangement enables Nebius clients to operate AI workloads while maintaining their current CrowdStrike security protocols.
“Working with CrowdStrike means customers can run AI workloads on our full-stack platform without disrupting the security controls they already rely on,” said Nebius CRO Mark Boroditsky.
Morgan Stanley recently elevated CrowdStrike from Equalweight to Overweight, citing platform capabilities and endpoint market potential. RBC Capital likewise sustained its Outperform designation following robust ARR expansion and increased fiscal 2027 projections.
CRWD stock advanced 3.30% during the session.
