Nebius (NBIS) stock rallied on Thursday alongside reports that it has signed a deal with Microsoft (MSFT) to provide the tech giant with computing power for its artificial intelligence (AI) applications. According to insiders, the deal between Microsoft and Nebius will provide the AI cloud computing company with $19.4 billion for access to its more than 100,000 Nvidia (NVDA) GB300 chips.
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Investors will note that such a deal between Nebius and Microsoft was first reported on September 8. While NBIS stock rallied alongside those reports, they lacked finer details of the agreement. Today’s reports build on that with more information on what the collaboration between the two companies means for Nebius. Further insight into the agreement could serve as an additional catalyst for NBIS stock.
While Nebius and Microsoft haven’t confirmed a deal, it wouldn’t come as a surprise. Microsoft has signed similar agreements with other AI cloud computing companies, such as CoreWeave (CRWV), Nscale, and Lambda. These deals are much needed for Microsoft to meet the growing demand that has resulted from the AI boom earlier this year.
Nebius Stock Movement Today
Nebius stock was up 4.6% on Thursday, extending a 339.17% rally year-to-date. The shares have also increased 510.4% over the past 12 months. NBIS stock has seen decent trading volume at the start of the day, with some 5.34 million shares exchanged, compared to a three-month daily average of about 18.1 million units.
Is Nebius Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nebius is Moderate Buy, based on five Buy and two Hold ratings over the past three months. With that comes an average NBIS stock price target of $136.40, representing a potential 13.5% upside for the shares.
