Key Points
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AI capacity rental prices have soared, and that’s great news for Nebius.
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Nebius raised additional capital last month.
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Deals with Nvidia and Meta have investors more excited about the company’s future.
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Nebius Group (NASDAQ: NBIS) is expanding partnerships, and investors are getting more excited about its potential and future prospects. Those announcements and other factors helped drive Nebius stock up 13.8% in March, according to data provided by S&P Global Market Intelligence.
Perhaps the biggest news was an investment in the company by artificial intelligence (AI) leader Nvidia. That news was especially notable because Nvidia also owns a large stake in Nebius competitor CoreWeave.
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Signals of high demand
The fundamental principle of business revolves around the concept of supply and demand. That compute capacity for AI applications is in demand hasn’t been in dispute. Nebius offers that capacity, but so do its competitors. It was telling, then, when Nvidia announced plans last month to invest $2 billion in Nebius. That helped showcase its confidence in Nebius’s business capabilities and its technology throughout the entire AI technology stack.
What makes it particularly notable, though, is that, as of the end of 2025, Nvidia already owned a more than 12% stake in Nebius competitor CoreWeave. The Nvidia investment will help Nebius to implement over 5 gigawatts (GWs) of Nvidia systems over the next five years. And that wasn’t the only big partnership Nebius recently announced.
It also revealed a new, long-term supply agreement with Meta Platforms that will provide Meta with $12 billion in AI infrastructure capacity via different locations starting early next year.
Nebius keeps investing, too
Nebius is taking advantage of the high demand to continue to expand its capacity, too. It has confidence that supply will be utilized partly from the Meta agreement. That deal also included another $15 billion commitment from Meta to purchase additional available compute capacity over a five-year period.
That is in addition to other third-party customers who seek to purchase Nebius capacity. Nebius should want to continue supplying the spot business as well. The high demand has resulted in a 40% increase in some AI infrastructure rental prices since October, according to the SemiAnalysis newsletter.
Nebius also raised over $4 billion in a convertible note offering last month. Those funds will be used to further expand its cloud capacity. That includes a new project announced at the end of March. Nebius plans to build a new data center in Finland with a capacity of over 300 megawatts.
That’s another part of the company’s 2026 goal to attract 3 GW of contracted business. That high level of spending is what could keep the stock highly volatile, however. Investors should expect to see pullbacks, and those might be the best times to buy Nebius stock this year.
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Howard Smith has positions in Nvidia and has the following options: short April 2026 $180 calls on Nvidia. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
