Nebius Group Shares Surge Nearly 12% on $1 Billion AI Cloud Deal and New Nvidia Infrastructure Launch

Nebius Group N.V. shares climbed nearly 12% in morning trading Monday, extending a rebound for the AI cloud infrastructure provider as investors digested a multiyear computing contract and the activation of next-generation Nvidia hardware.

The stock traded near $213.16, up $22.75, after the company announced a multiyear agreement to supply more than $1 billion in GPU-based cloud services through 2029 to Reflection AI. Nebius also reported that its Vera Rubin compute rack is now operational at its data center in Finland, expanding capacity for advanced AI workloads.

The moves add to a series of large-scale customer commitments that have positioned Nebius as a significant player in the neocloud sector, which supplies specialized computing power for artificial intelligence model training and inference. The company already counts multiyear agreements with major technology firms, including a capacity deal with Meta Platforms valued at up to $27 billion over five years and substantial business with Microsoft.

Nebius, based in Amsterdam, has pursued aggressive expansion of its data center footprint and GPU inventory to meet demand that management has described as consistently outstripping available supply. In the first quarter of 2026, group revenue rose 684% year over year to $399 million, while the core Nebius AI cloud business delivered $390 million, up 841% from the prior-year period. Annualized run-rate revenue for the AI segment reached $1.9 billion at the end of March.

Adjusted EBITDA for the group turned positive at $130 million in the first quarter, with a 32% margin, while the AI cloud business posted a 45% adjusted EBITDA margin. The company reiterated full-year 2026 guidance calling for annualized run-rate revenue of $7 billion to $9 billion, group revenue of $3 billion to $3.4 billion and an adjusted EBITDA margin around 40%.

Capital expenditures remain elevated as Nebius builds capacity. Management raised its 2026 CapEx outlook to $20 billion to $25 billion to support power and infrastructure targets exceeding 4 gigawatts of contracted capacity by year-end. A new site in Pennsylvania is designed to support up to 1.2 gigawatts once fully operational. Funding has come from a mix of customer prepayments, equity investment, convertible notes and, more recently, a senior secured debt facility.

Nvidia holds a notable stake in Nebius and has deepened technical collaboration, including recognition of Nebius infrastructure for advanced GPU generations. The partnership has been cited by analysts as a strategic advantage in securing hardware supply and co-developing capabilities for training and inference workloads.

The Reflection AI contract provides additional multiyear revenue visibility at a time when AI infrastructure providers face high upfront costs before utilization ramps. Industry demand continues to be supported by heavy capital spending from hyperscalers and enterprise customers racing to expand model training capacity and deploy generative AI applications.

Nebius is scheduled to report second-quarter results on August 12. Analysts expect continued strong top-line growth, with consensus revenue estimates near $577 million, representing several hundred percent year-over-year expansion, though adjusted losses are still anticipated as the company invests ahead of capacity coming online.

The stock has experienced significant volatility throughout 2026, reflecting both enthusiasm for AI infrastructure pure-plays and concerns about capital intensity, customer concentration and the pace of capacity deployment relative to contracted demand. Shares have risen sharply over the past year on the back of major contract announcements and improving operating metrics.

Market participants will watch closely for updates on utilization rates, additional customer wins, power acquisition progress and any revisions to the ambitious full-year targets. The combination of a new multiyear contract and operational milestones with Nvidia hardware has reinforced the narrative that Nebius is converting AI demand into tangible capacity and contracted revenue.

As the company scales its platform across existing and new sites, the focus remains on delivering the contracted power and converting backlog into recognized revenue while managing the substantial capital requirements of the build-out. The latest announcements have provided near-term catalysts for the shares amid broader positive sentiment toward AI infrastructure names.