Nebius Rockets on $17.4B AI Deal with Microsoft
Amsterdam-based Nebius (NASDAQ: NBIS) surges as it inks major GPU infrastructure pact with Microsoft (MSFT), spotlighting its role in AI cloud expansion.
Nebius Group N.V. (NBIS), listed on the NASDAQ within the Technology / AI infrastructure sector, is making serious waves in today’s market. The spark? A massive $17.4 billion agreement with Microsoft (MSFT) to provide GPU infrastructure capacity over five years — a deal that could even expand to $19.4 billion if demand keeps rising.
The market’s reaction was immediate and dramatic. NBIS stock surged sharply, with intraday gains estimated between 38% and 55%, pushing prices toward the $99–$108 range in extended trading. That surge alone added nearly $7.7 billion in market value, lifting the company’s capitalization from around $15.3 billion to well above $23 billion.
What makes this story compelling is not just the dollar figure. Nebius, originally spun out of Yandex, has transformed into one of the rising “neocloud” providers, a new breed of AI cloud infrastructure firms challenging traditional giants like Amazon (AMZN) and Alphabet’s Google (GOOGL). Unlike hyperscalers that invest billions in capital expenditure, Nebius relies on a leaner, asset-light model that appeals to partners eager to scale fast without tying up balance sheets.
This new contract also cements Microsoft’s strategy in the AI arms race. By securing Nebius’s infrastructure, MSFT gains access to cutting-edge GPU clusters powered by NVIDIA (NVDA), helping it keep pace with soaring demand for AI training and inference workloads. It’s a smart move that boosts Microsoft’s free cash flow while expanding its AI computing capacity.
The ripple effects are already spreading across the sector. CoreWeave (CRWV), Iris Energy (IREN), and TeraWulf (WULF) — all part of the broader AI infrastructure ecosystem — have seen investor interest tick higher as speculation grows that more hyperscalers could strike similar partnerships. Still, Nebius (NBIS) stands out, with analysts suggesting it could attract additional frontier AI clients well beyond Microsoft, riding the growth wave into 2026 and beyond.
Perhaps the most electrifying part of the story is how NBIS stock, already up over 200% in 2025, still appears undervalued relative to the enormous contract size. If even part of this deal translates into recurring revenues, future earnings forecasts may reset dramatically higher, giving bulls plenty of ammunition to argue that Nebius’s best days are still ahead.
For now, NBIS embodies the hottest mix of AI optimism, infrastructure necessity, and growth potential. With MSFT, NVDA, CRWV, and IREN all in the conversation, investors are watching closely as the neocloud revolution picks up speed. This is more than a stock spike; it’s a glimpse into the next chapter of AI-driven cloud computing.